NSEI:DWARKESH

Stock Analysis Report

Executive Summary

Dwarikesh Sugar Industries Limited, an integrated conglomerate, manufactures and sells sugar and allied products in India and internationally.

Rewards

PE ratio (9x) is below the Indian market (13.8x)

Earnings grew by 58.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.

Share Price & News

How has Dwarikesh Sugar Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DWARKESH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.8%

DWARKESH

5.4%

IN Food

1.8%

IN Market


1 Year Return

68.4%

DWARKESH

15.1%

IN Food

8.0%

IN Market

Return vs Industry: DWARKESH exceeded the Indian Food industry which returned 11.6% over the past year.

Return vs Market: DWARKESH exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

DWARKESHIndustryMarket
7 Day5.8%5.4%1.8%
30 Day52.4%8.5%3.6%
90 Day69.4%5.6%6.5%
1 Year75.7%68.4%16.6%15.1%10.0%8.0%
3 Year11.3%6.5%89.1%83.6%35.0%27.9%
5 Year1302.4%1242.1%122.2%111.5%36.5%24.2%

Price Volatility Vs. Market

How volatile is Dwarikesh Sugar Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dwarikesh Sugar Industries undervalued compared to its fair value and its price relative to the market?

9.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DWARKESH (₹38.65) is trading above our estimate of fair value (₹22.29)

Significantly Below Fair Value: DWARKESH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DWARKESH is good value based on its PE Ratio (9x) compared to the Food industry average (14x).

PE vs Market: DWARKESH is good value based on its PE Ratio (9x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DWARKESH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DWARKESH is overvalued based on its PB Ratio (1.6x) compared to the IN Food industry average (1x).


Next Steps

Future Growth

How is Dwarikesh Sugar Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.8%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dwarikesh Sugar Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dwarikesh Sugar Industries performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DWARKESH has high quality earnings.

Growing Profit Margin: DWARKESH's current net profit margins (8.1%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: DWARKESH has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: DWARKESH's earnings growth over the past year (58.9%) exceeds its 5-year average (34.4% per year).

Earnings vs Industry: DWARKESH earnings growth over the past year (58.9%) exceeded the Food industry 15.9%.


Return on Equity

High ROE: DWARKESH's Return on Equity (17.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dwarikesh Sugar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DWARKESH's short term assets (₹6.4B) exceed its short term liabilities (₹4.5B).

Long Term Liabilities: DWARKESH's short term assets (₹6.4B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: DWARKESH's debt to equity ratio (85.6%) is considered high.

Reducing Debt: DWARKESH's debt to equity ratio has reduced from 270.5% to 85.6% over the past 5 years.

Debt Coverage: DWARKESH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DWARKESH's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: DWARKESH has a high level of physical assets or inventory.

Debt Coverage by Assets: DWARKESH's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Dwarikesh Sugar Industries's current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.2%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DWARKESH's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: DWARKESH's dividend (2.59%) is in the top 25% of dividend payers in the Indian market (2.31%)


Stability and Growth of Payments

Stable Dividend: DWARKESH's dividend payments have been volatile in the past 10 years.

Growing Dividend: DWARKESH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), DWARKESH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Dwarikesh Sugar Industries's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Balkishan Maheshwari (59yo)

1.7yrs

Tenure

₹13,344,172

Compensation

Mr. Balkishan Jawarilal Maheshwari has been the Managing Director of Dwarikesh Sugar Industries Limited since May 7, 2018, serves as its Company Secretary since 2009 and has been its Chief Compliance Offic ...


CEO Compensation Analysis

Compensation vs Market: Balkishan's total compensation ($USD188.31K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Balkishan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: DWARKESH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

Experienced Board: DWARKESH's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Balkishan Maheshwari (59yo)

    MD, Company Secretary

    • Tenure: 1.7yrs
    • Compensation: ₹13.34m
  • Alok Lohia (58yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: ₹4.68m
  • R. Singh

    Chief Manager of Materials

    • Priyanka Morarka (34yo)

      President of Corporate Affairs

      • Tenure: 0.5yrs
      • Compensation: ₹3.12m
    • Vijay Banka (61yo)

      MD & Director

      • Tenure: 10.7yrs
      • Compensation: ₹13.43m
    • Balendu Sharma

      Chief General Manager of Information Technology

      • Sharvan Sharma

        General Manager of Human Resources Department

        • Surendra Singh (56yo)

          Chief General Manager of Cane

          • Rajendra Thakur (53yo)

            Chief General Manager of Works


            Board Members

            • Gautam Morarka (57yo)

              Founder & Executive Chairman

              • Tenure: 1yrs
              • Compensation: ₹47.73m
            • Balkishan Maheshwari (59yo)

              MD, Company Secretary

              • Tenure: 1.7yrs
              • Compensation: ₹13.34m
            • Bal Agarwal (76yo)

              Independent Non-Executive Director

              • Tenure: 5.4yrs
              • Compensation: ₹320.00k
            • Kokkarne Prithviraj (72yo)

              Independent Non-Executive Director

              • Tenure: 5.4yrs
              • Compensation: ₹265.00k
            • Vijay Banka (61yo)

              MD & Director

              • Tenure: 10.7yrs
              • Compensation: ₹13.43m
            • Nina Chatrath (57yo)

              Independent Woman Director

              • Tenure: 2.9yrs
              • Compensation: ₹290.00k

            Company Information

            Dwarikesh Sugar Industries Limited's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Dwarikesh Sugar Industries Limited
            • Ticker: DWARKESH
            • Exchange: NSEI
            • Founded: 1993
            • Industry: Packaged Foods and Meats
            • Sector: Food, Beverage & Tobacco
            • Market Cap: ₹7.739b
            • Shares outstanding: 188.30m
            • Website: https://www.dwarikesh.com

            Number of Employees


            Location

            • Dwarikesh Sugar Industries Limited
            • 511, Maker Chambers V
            • 221, Nariman Point
            • Mumbai
            • Maharashtra
            • 400021
            • India

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            532610BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005
            DWARKESHNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2005

            Biography

            Dwarikesh Sugar Industries Limited, an integrated conglomerate, manufactures and sells sugar and allied products in India and internationally. It is also involved in the co-generation of power, and manufacture of industrial alcohol and ethanol. The company was formerly known as Dwarka Sugar Limited and changed its name to Dwarikesh Sugar Industries Limited in 1994. Dwarikesh Sugar Industries Limited was founded in 1993 and is based in Mumbai, India. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/17 12:48
            End of Day Share Price2020/01/16 00:00
            Earnings2019/09/30
            Annual Earnings2019/03/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.