Dhampur Sugar Mills Ltd Detail
As per the Company website it is one of the leading integrated sugarcane processing companies in India. The products or business verticals of Company includes below
- Sugar – Having daily crushing capacity of 45,500 metric ton of Cane and 1700 MT of refined Sugar. It is first company to produce Sulphurless sugar
- Power – Generates 209MWH of power which helps in savings Electricity cost and generate cash inflows as well
- Ethanol – It has capacity of Ethanol – 300,000 liters Per Day Rectified Spirit – 300,000 liters Per Day Extra Neutral Alcohol – 140,000 liters Per Day Special Denatured Spirit – 300,000 liters Per Day.
- Alcochem – produces Ethyl Acetate (140 MT per day) used as Solvent
- Industrial Gases – produces 25 MT per day of Carbon dioxide
- Bo Fertilizer – It produces Liquid (1,000 L per day) and Organic fertilizer (20,000 metric tonnes per annum.
The business facilities of Company are located in Asmoli, Dhampur, Mansurpur, Meerganj and Rajpura. Below are list of Subsidiary Companies
- Ehaat – Provides eCommerce to remote rural areas of India.
- Dhampur International – To promote Company products internationally. Office is in Singapore
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Dhampur Sugar Mills Ltd Stock Performance
Sugar is cyclic sector. This is not an hidden truth. If you look at above chart it is clearly evident. Sugar sector gives sharp rise and fall in stock prices. Dhampur is no exception to this rule. On absolute terms it has given 25 times return in past 16 years. It is also giving dividend yield of more than 1.5% at current market price.
Investors have made money in this counter. But if you see there were times when stock traded below 50 mark as well giving sleepless nights to investors. People should carefully invest in a cyclic stocks. They should try to sell at top and buy near bottom. You can refer the long term chart to get an idea of top and bottom. But that is tough ask. You can catch 50% of top and bottom and sometimes you can miss also (See the small hills in 2010 to 216 period.
Dhampur Sugar Mills Ltd My Opinion
Dhampur Sugar Mills Ltd is a Sugar Company. It creates products which are generally by products of Sugar creation process. It generates power to meet the energy demands and also make money selling it.
As mentioned above I am not fond of Cyclic sectors. These sectors have abrupt price movements and you need to time your entry and exit. Also the wait time is there. People often get frustrated if stock is in down turn. Having said that if you can play them well then you can make quick money very fast. You can see sharp positive movements every time the stock has rallied.
Sugar sector is here to stay. People will eat sugar no matter what. So demand will always be present. You can rest assured about the sector and Company. Only important thing is timing as these are cyclic as they are based on Agriculture. I am not invested in this sector and will not track the stocks. I like buy and hold for long time investment style.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.