Dhampur Sugar Mills Announces Buyback Plan Set 17 January 2024 as Record Date

Dhampur Sugar Mills' shares saw a small increase after the company's board gave the green light to a buyback plan for 10 lakh shares at ₹300 each. This decision caused the stock to go up by one percent, reaching ₹271.9 per share on Bombay Stock Exchange (BSE) but stock could not sustain the gain trading at ₹268.55 below 0.59% from yesterday’s close.

Buyback Details

Buyback valued at approximately ₹30 crore, carries a premium of 11.4% over the stock's previous closing price. Dhampur Sugar Mills shared this information to comply with regulatory guidelines. Dhampur Sugar Mills has set 17 January as the record date to determine which shareholders are eligible to participate in the buyback, this is a crucial step in identifying who can take part in the buyback. This buyback is its first buyback.

Dhampur Sugar Business

Dhampur Sugar (established in 1933) is a well-organized player in the sugar, chemical, and cogeneration industries in India. The company is a key player in integrated sugarcane processing, boasting the largest sugarcane processing capacity in the country. Dhampur Sugar has one of the highest ethanol manufacturing capacities relative to its cane crushing capacity.

Based in Delhi, Dhampur Sugar Mills currently has a market capitalization approaching ₹2,000 crore. Sugar industry received a boost recently when the government reversed its decision to ban the use of cane juice for ethanol production. This decision has provided some relief to sugar companies, including Dhampur Sugar.

Dhampur Sugar Performance

Over the last month Dhampur Sugar Mills' stock gone up by 0.41%. Looking at a slightly longer timeframe stock rose 1.39% in the past six months. Over the past year stock price of Dhampur Sugar Mills increased by 13.68% and over the last five years stock soared 53.19%.

Dhampur stock hit a high of ₹515 in 2022 but has since dropped by almost 47%, currently trading at ₹269. It hit a low point of ₹190 in November 2022 but has rebounded by 38% from that low. So, it's on the path to recovery from its recent dip.

Sales fell by 15% from ₹541 crore in Q2FY23 to ₹459 crore in Q2FY24. Net profit also took a hit dropping 50% from ₹11.54 crore to ₹5.43 crore over the same period.