This is extract from Dhampur’s presentation. The power & Distillary are contributing more to profits than last year due to more operational days of sugar crushing, lower molasses price, higher ethonol production etc.
The fixing of lower limit of sugar price @29 rs & other measures by govt seems to giving support for sugar price (31.5 rs/kg according to presentation).
According to Presentation: Dhampur is expanding distillary capacity from 3 to 4 lakh ltr/annum. Considering increasing it by 1 lakh ltr/annum more.
Dhampur is Paying off long term debt slowly and also reducing the short term debt.
The rupee depreciation & high oil rates should support the ethanol blending program & sugar exports.
Need to track how ethanol blending program progresses. The sugar industry re-rating depends on the success of this program.
The bumper crop of next year would increase the cost of holding big inventory in the form of increasing the interest burden, which is the primary negative I can see.
So far things are looking good or may be I am missing something which market knows.
Discl: Have only basic understanding of sugar sector & investing. Invested in Dhampur @200.
Edits: Distillation capacity related mistakes; million -> Lakhs; 3 lakh to 4 lakh; Apologies for wrong info