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Dalmia Bharat Sugar & Industries Receives ‘Sell’ Downgrade from MarketsMOJO

Dalmia Bharat Sugar & Industries has been downgraded to ‘Sell’ by MarketsMOJO due to weak long-term growth metrics and consistent quarterly losses. Rising interest costs (+57.76%) and declining profit before tax (-59.5%) highlight financial pressures, while operating cash flow is negative at ₹-354.71 crore. Over the past year, it underperformed the market, yielding just 3.36%.

Dalmia Bharat Sugar & Industries, a small-cap player in the sugar industry, has received a stock downgrade to ‘Sell’ from MarketsMOJO as of December 17, 2024. This decision is primarily attributed to the company’s poor long-term growth metrics, with net sales increasing at an annual rate of 9.32% and operating profit at 11.88% over the past five years.

The company has reported negative results for three consecutive quarters, with interest growing to Rs 37.61 crore, a rise of 57.76%. However, profit before tax, excluding other income, has seen a significant decline of 59.5%, standing at Rs 21.91 crore. Operating cash flow is notably low at Rs -354.71 crore.

Despite its small size, domestic mutual funds hold a mere 0.01% stake in the company, indicating potential concerns regarding its valuation or business stability. Over the past year, Dalmia Bharat Sugar has underperformed the market, generating a return of only 3.36%, compared to the BSE 500’s 19.95%. The company’s debt-to-equity ratio remains average at 0.37 times, and its technical trend is currently sideways, reflecting a lack of clear price momentum.

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Source : Markets Mojo

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