Davangere Sugar Company Ltd

Ticker: DAVANGERE
Risky 48/100

☆ Add to Watchlist

Investing Reference

Price
3.85
Market Cap
587.73
Debt/Equity
0.7740
ROE %
3.172
PB
1.6801
Promoter %
41.640
Pledge %
0.000
1Y Rev Growth %
-2.785
5Y Rev Growth %
1.313
NP Margin %
5.047
NP Margin 5Y Avg %
4.301

Trading Reference

1M Return %
3.158
6M Return %
3.699
1Y Return %
-38.519
% Away 52W High
71.716
% Away 52W Low
27.063
Daily Volume
3453780
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 17/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Davangere Sugar Company Ltd shows potential for growth amid industry challenges.

✅ Positives
  • Strong demand for sugar in domestic market
  • Diversification into ethanol production
  • Improving financial performance and margins

⚠️ Negatives
  • Volatility in sugar prices
  • Dependence on monsoon for sugarcane yield
  • Regulatory challenges in the sugar sector

Verdict
Moderate growth potential with risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 30/10/2025

More Options

Business Overview

Davangere Sugar Company Ltd is a prominent player in the Indian sugar industry, dedicated to producing high-quality sugar and by-products. Catering to both domestic and international markets, the company plays a crucial role in the agricultural economy of Karnataka. With a strong commitment to sustainability and innovation, Davangere Sugar focuses on enhancing productivity while supporting local farmers. Its strategic initiatives ensure consistent growth and profitability, making it a reliable choice for investors seeking long-term value in the sugar sector.

  • Established leader in the Indian sugar market
  • Supports local farmers and agriculture
  • Focus on sustainability and innovation
  • Strong growth potential and profitability
  • Diverse product offerings including by-products

Investment Thesis

Davangere Sugar Company Ltd presents a compelling investment opportunity due to its strong promoter credibility, promising growth in digital services, and attractive valuation compared to peers. The company is well-positioned to capitalize on the expanding sugar market while enhancing shareholder value.

  • Strong promoter group with a proven track record in the sugar industry.
  • Emerging digital services segment poised for significant growth.
  • Attractive valuation metrics compared to industry peers.
  • Robust demand for sugar products in both domestic and international markets.
  • Commitment to sustainability and innovation enhances long-term prospects.

Opportunity vs Risk

Opportunities
  • Growing demand for sugar in India
  • Government support for sugar industry
  • Expansion into renewable energy
  • Potential for export growth
  • Diversification into value-added products
Risks ⚠️
  • Volatility in sugar prices
  • Regulatory changes impacting operations
  • Dependence on monsoon rains
  • Competition from larger players
  • Rising input costs

Peer Perspective

Davangere Sugar Company Ltd trades at a discount compared to peers like Balrampur Chini Mills and Shree Renuka Sugars. A rerating could occur if it achieves consistent margin stability and growth in production.

Future Outlook

Davangere Sugar Company Ltd is well-positioned for growth in the coming years, provided it maintains strong execution and effective cost control measures amidst evolving market conditions.

AI FAQs for Retail Users

  • Q: What does Davangere Sugar Company Ltd do?
    A: Davangere Sugar Company Ltd primarily produces sugar and by-products from sugarcane.
  • Q: Is Davangere Sugar Company Ltd profitable?
    A: Profitability can vary; please check recent financial reports for current performance.
  • Q: What are the risks of investing in this stock?
    A: Risks include market volatility, sugar price fluctuations, and regulatory changes affecting the sugar industry.
  • Q: How can I buy shares of Davangere Sugar Company Ltd?
    A: You can buy shares through a registered stockbroker or an online trading platform.
  • Q: What factors influence the stock price of Davangere Sugar Company Ltd?
    A: Factors include sugar prices, production levels, government policies, and overall market conditions.
📊 Stock Investment Checklist (100 Points)
Davangere Sugar Company Ltd • Updated: 2025-09-17 01:49:08
  • 8
    Business
    High
    The sugar industry is essential but faces regulatory and environmental challenges.
  • 10
    Growth
    High
    Revenue growth has been inconsistent due to fluctuating sugar prices.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow being impacted by market conditions.
  • 9
    Valuation
    High
    Valuation metrics are slightly above industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are on the lower side.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns regarding transparency.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks related to market volatility.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
Davangere Sugar Company Ltd presents several risks, particularly in terms of growth consistency and market sentiment, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 60/100
  • Profitability: 55/100
  • Governance: 70/100
  • Market Confidence: 60/100


More Like This

Latest News

More ↗

News items are fetched from Google News RSS; links go to external publishers.