Dhampure Speciality Sugars Limited

Consumer Defensive — Confectioners · BSE

₹156.85−₹2.40 (−1.51%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dhampure Speciality Sugars Limited engages in manufacturing, processing, dealing, and selling of sugar and allied products in India.

IndustryConfectioners

SectorConsumer Defensive

Employees62

Annual revenue₹58 Cr

How does it make money?

Turns over ₹58 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹94.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹94.2 lakh

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?Some evidence

ROCE of 17.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +171% while net margin moved -0% 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+171%

Margin effect-0%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.29 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

73/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

21.4x

3Y Median

34.9x

40 monthly readings · mean 45.8x · range 17.7x–99.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 34.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 51% below the peer median of 43.3x.

vs. its own history

Cheap

34.9x median over 40 months · -39%

vs. sector peers

Cheap

43.3x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.0x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.5% to 13.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 8.0% to 13.1%.
Return on capital is rising
ROCE has improved from 9.8% to 17.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 7.58x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.5% to 13.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 51% 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?

Leverage amplifies any setback
Debt/Equity of 7.58x. Interest is payable whether or not the business has a good year.
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.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 30% a year✓ 39.4% CAGR
Latest reported year was 74.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹137 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.4x

Fair

Fairly valued against the generic band

P/B Ratio

3.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.33

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

17.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.58x

High

High leverage

Revenue Growth (YoY)

74.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

13.3%

Average

Average margins

Net Margin

9.6%

Average

Average bottom-line conversion

Current Ratio

3.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

146.1 / 144.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹29 Cr	₹40 Cr	₹58 Cr	+39.4%
EBITDA	₹1 Cr	₹1 Cr	₹4 Cr	₹8 Cr	+118.2%
EBITDA Margin	3.5%	3.9%	9.7%	13.5%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹3 Cr	₹6 Cr	+39.2%
EPS	₹2.6	₹1.18	₹3.45	₹6.35	+34.7%
ROE	8.0%	3.5%	8.4%	13.1%	—
ROCE	9.8%	2.5%	10.6%	17.3%	—
Free Cash Flow	-₹9 Cr	₹2 Cr	-₹5 Cr	₹1 Cr	—

🟢 Revenue has grown at 39.4% a year over 3 years.

🟢 EBITDA has grown at 118.2% a year over 3 years.

🟢 EBITDA Margin has risen from 3.5% to 13.5% over 3 years (+10.0 pts).

🟢 PAT (Net Profit) has grown at 39.2% a year over 3 years.

🟢 EPS has grown at 34.7% a year over 3 years.

🟢 ROE has risen from 8.0% to 13.1% over 3 years (+5.1 pts).

🟢 ROCE has risen from 9.8% to 17.3% over 3 years (+7.5 pts).

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹8 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.6%

Corporate Actions

Ex-Dividend Date

23 Sept 2014

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

1 positive5 general

Dhampure Speciality Sugars Share Price and fundamentals

Univest, 13 Oct

Dhampur Speciality Sugars closes trading window from Oct 1 for Q2FY27

scanx.trade, 28 Sept

Dhampure Speciality Sugars standalone net profit more than doubles to Rs 5.41 crore in FY2025-26

ChiniMandi, 28 May

Dhampure Speciality Sugars Share Price: sector and peer view

Univest, 21 Sept

Dhampure Speciality Sugars FY26 Results: Net profit up 93% to ₹554.8 lakh

scanx.trade, 20 AugResults

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

Vistar Amar (BSE:538565) - Stock Analysis

Simply Wall Street, 10 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingFinancial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑