Dhampur Bio Organics Limited

Consumer Defensive — Farm Products · NSE

₹141.22−₹2.82 (−1.96%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Dhampur Bio Organics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dhampur Bio Organics Limited, together with its subsidiaries, manufactures and sells sugar in India and internationally. The company operates through three segments: Sugar; Biofuels and Spirits; and Country Liquor.

IndustryFarm Products

SectorConsumer Defensive

Employees1,692

Annual revenue₹2,074 Cr

How does it make money?

Turns over ₹2,074 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,692 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -12% while net margin moved -74% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-12%

Margin effect-74%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.3% a year
✗ Profit has declined at 39.0% a year

Quality vs. Valuation

Company Quality

31/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

27.4x

3Y Median

18.4x

40 monthly readings · mean 23.6x · range 6.9x–56.6x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 49% above its 3y median of 18.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 37% below the peer median of 43.3x.

vs. its own history

Expensive

18.4x median over 40 months · +49%

vs. sector peers

Cheap

43.3x median of 4 peers · -37%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 21% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.2% to 2.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.2% to 7.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 77% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 24% against revenue up -12% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 37% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.0% to 6.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 7.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 49% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 11.2% to 2.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹176 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹929 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.15

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

1.03x

Moderate

Moderate leverage

Revenue Growth (YoY)

-2.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

71.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹176 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-0.7%

Weak

Thin margins leave little room for error

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

129.9 / 125.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,367 Cr	₹1,839 Cr	₹1,843 Cr	₹2,074 Cr	-4.3%
EBITDA	₹214 Cr	₹145 Cr	₹136 Cr	₹141 Cr	-12.8%
EBITDA Margin	9.0%	7.9%	7.4%	6.8%	—
PAT (Net Profit)	₹111 Cr	₹46 Cr	₹15 Cr	₹25 Cr	-39.0%
EPS	₹16.74	₹7	₹2.21	₹3.8	-39.0%
ROE	11.2%	4.6%	1.5%	2.5%	—
ROCE	14.2%	8.6%	6.1%	7.7%	—
Total Debt	₹810 Cr	₹1,057 Cr	₹1,162 Cr	₹1,060 Cr	+9.4%
Free Cash Flow	₹145 Cr	-₹272 Cr	-₹16 Cr	₹176 Cr	+6.6%

🔴 Revenue has shrunk at 4.3% a year over 3 years.

🔴 EBITDA has shrunk at 12.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.0% to 6.8% over 3 years (-2.2 pts).

🔴 PAT (Net Profit) has shrunk at 39.0% a year over 3 years.

🔴 EPS has shrunk at 39.0% a year over 3 years.

🔴 ROE has fallen from 11.2% to 2.5% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 14.2% to 7.7% over 3 years (-6.5 pts).

🔴 Total Debt has grown at 9.4% a year over 3 years.

🟢 Free Cash Flow has grown at 6.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,322 Cr

Total Liabilities

₹1,295 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹220 Cr

Capex

-₹44 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.1%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

17 Jul 2026

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 positive1 mixed3 general

DBOL Share Price update with fundamentals and sector view

Univest, 06 Oct

Dhampur Bio Organics Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Dhampur Bio Organics closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 26 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Dhampur Bio Organics Posts ₹38.4 Cr Profit as Q1 Revenue Surges 19% YoY

Sahi, 14 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Three Days Left Until Dhampur Bio Organics Limited (NSE:DBOL) Trades Ex-Dividend

Simply Wall Street, 13 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Dhampur Bio Organics - Concurrent Gainers: 14 smallcap stocks that gain for 5 days in a row

The Economic Times, 10 Oct

Watch Items

Revenue growth is negative (-2.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑