Should You Think About Buying Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) Now?

Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG), is not the largest company out there, but it led the NSEI gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Dalmia Bharat Sugar and Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Dalmia Bharat Sugar and Industries

Is Dalmia Bharat Sugar and Industries still cheap?

Good news, investors! Dalmia Bharat Sugar and Industries is still a bargain right now. According to my valuation, the intrinsic value for the stock is ₹825.83, but it is currently trading at ₹534 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Dalmia Bharat Sugar and Industries’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Dalmia Bharat Sugar and Industries?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 44% over the next couple of years, the future seems bright for Dalmia Bharat Sugar and Industries. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since DALMIASUG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on DALMIASUG for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DALMIASUG. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into Dalmia Bharat Sugar and Industries, you'd also look into what risks it is currently facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Dalmia Bharat Sugar and Industries.

If you are no longer interested in Dalmia Bharat Sugar and Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.