Davangere Sugar Share Price Target 2025,2030,2035,2040

Share of Davangere Sugar Company Limited is currently trading at around Rs.3.50.Investors are asking for the Davangere Sugar Share Price Target for 2025, 2030, 2035 and 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you the Davangere Sugar Share Price Target for 2025, 2030, 2035 and 2040.

Discussion & Analysis of Business & Financial performance with future business prospects of Davangere Sugar Company Ltd:

🌾 Davangere Sugar Company Ltd: Business Profile & Future Outlook

Davangere Sugar Company Ltd (DSCL), established in 1970 and headquartered in Karnataka, is one of India’s oldest integrated sugar manufacturers. Over the decades, DSCL has evolved from a conventional sugar mill into a diversified enterprise with operations spanning sugar production, ethanol manufacturing, and cogeneration of power. The company is part of the Shamanur Group, known for its commitment to innovation, sustainability, and farmer-centric growth.

🏭 Current Business Profile

DSCL operates a fully integrated facility in Kukkuwada, Karnataka, featuring:

6,000 TCD sugar crushing capacity
65 KLPD ethanol production unit
24.45 MW cogeneration power plant
165 acres of land with 60,000 tonnes of storage capacity

Its business segments include:

Sugar & Molasses: Core manufacturing from sugarcane, with refined sugar capabilities
Ethanol Production: Leveraging molasses and maize to support India’s Ethanol Blending Program
Cogeneration: Producing electricity from bagasse, contributing to green energy goals
Farmer Engagement: Subsidized inputs, plantation incentives, and agronomic support

In FY25, DSCL reported:

Revenue from operations: ₹216.76 crore
EBITDA: ₹53.75 crore (8% YoY growth)
PAT: ₹10.83 crore

Despite operating in a cyclical and regulated industry, DSCL has maintained profitability margins, with EBITDA improving from 19.93% in FY23 to 20.93% in FY24.

🚀 Future Business Prospects

DSCL is strategically aligning with India’s green energy and rural development goals. Key growth drivers include:

Ethanol Expansion: Scaling maize procurement and ethanol output to meet national blending targets
Farmer Partnerships: Targeting 15,000 acres of sugarcane cultivation, expanding into non-traditional zones
Sustainability Focus: Zero Liquid Discharge (ZLD) technology and circular economy practices
Infrastructure Resilience: Warehousing, automation, and real-time agronomic support for farmers

The company’s distillery division is expected to be a major profitability driver, especially during off-season periods when sugar production slows. DSCL’s emphasis on maize-based ethanol also insulates it from sugarcane supply volatility.

However, challenges remain:

High debt levels: ₹264 crore with a debt-to-equity ratio of 1.71
Low interest coverage: 1.79x in FY24, indicating pressure on financial flexibility
Cyclical risks: Sugar price controls, monsoon dependency, and government policy shifts

📈 Investment Outlook

While DSCL’s long-term fundamentals are supported by infrastructure and diversification, its low ROE (3.22%) and modest profit margins (5.63%) suggest cautious optimism. The company’s strategic pivot toward ethanol and farmer empowerment could unlock value, but investors should monitor debt metrics and regulatory developments closely.

Share Price Targets:

Davangere Sugar Share Price Target 2025

Based on the above discussion and analysis, the share price of Davangere Sugar Company Ltd may touch the level of around Rs.4.00-4.25 in 2025

Davangere Sugar Share Price Target 2030

Based on the above discussion and analysis, the share price of Davangere Sugar Company Ltd may touch the level of around Rs.9-10 in 2030

Davangere Sugar Share Price Target 2035

Based on the above discussion and analysis, the share price of Davangere Sugar Company Ltd may touch the level of around Rs.20-22 in 2035

Davangere Sugar Share Price Target 2040

Based on the above discussion and analysis, the share price of Davangere Sugar Company Ltd may touch the level of around Rs.45-50 in 2040

Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.

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