From Rs 24 to Rs 114: This multibagger delivered over 370% returns in 2 years!

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 4.76 lakh today.

Dwarikesh Sugar Industries Ltd is primarily engaged in the manufacturing of sugar and allied products. It has a strong presence in fields such as sugar manufacturing, power, and ethanol/ industrial alcohol production.

Last month, on June 24, 2022, the company announced to communicate the commissioning of its 175 KL per day distillery at its Dwarikesh-Dham (Faridpur) unit in the Bareilly district. The plant will use cane juice syrup and ‘B’ heavy molasses as feedstock for producing ethanol. The setting up of the distillery is an important milestone in the annals of Dwarikesh Sugar as the company’s distillery capacity now stands enhanced at 337.5 KL per day.

It will result in a revamp of the revenue stream. The company has made a significant stride toward environmental preservation and the national target of 20% ethanol blending by 2025 since the completion of this plant.

The company has delivered outstanding returns to its shareholders in the last two years. During this period, the company’s share price has appreciated 376.25%, going from Rs 24 on 20 July 2020 to Rs 114.30 on 20 July 2022.

The company is a part of the S&P BSE SmallCap index and with this performance, the company has outperformed the index. In the last two years, the index has delivered returns of 104%.

On the valuations front, the company is trading at a TTM PE of 13.87x as compared to the industry PE of 17.88x. In FY22, the company generated an ROE of 24.79% and ROCE of 21.03%.

On 21 July 2022, the shares of  Dwarikesh Sugar Industries Ltd closed at Rs 116.55, an increase of 1.97% from the previous day’s closing price of Rs 114.30 on BSE. The stock has a 52-week high & low of Rs 148.45 and Rs 62.40 respectively on BSE.