Promoters sold 34,37,205 shares of this multibagger sugar stock under Rs 100; Board announces stock split from Rs 10 to Rs 1

The stock gave multibagger returns of 580 per cent in 3 years with a PE of 54.3x, an ROE of 5 per cent and an ROCE of 9 per cent.

Davangere Sugar Company Limited (DSCL), established in 1970, is a Karnataka-based company that manufactures sugar and molasses from sugarcane. They also generate electricity through co-generation and operate a distillery unit. Their production facility in Karnataka has a sugar-crushing capacity of 4750 tons of cane per day (TCD), and their co-generation unit has a capacity of 24.45 megawatts (MW). Additionally, they have a distillery unit with a capacity of 63 kilolitres per day (KLPD).

The company's board of directors has approved a stock split. This means each existing share with a face value of Rs. 10 will be divided into 10 new shares with a face value of Rs. 1 each. To accommodate this split, the company's authorized share capital is being increased.

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On Friday, shares of DSCL gained 0.92 per cent to Rs 94.50 per share from its previous closing of Rs 94.01 per share. The stock’s 52-week high is Rs 120 while its 52-week low is Rs 49.16. The company has a market cap of Rs 885 crore and has delivered good profit growth of 28.8 per cent CAGR over the last 5 years.

The promoters of the company sold 34,37,205 shares and decreased their stake to 70.70 per cent in March 2024 compared to 74.36 per cent in December 2023. The stock gave multibagger returns of 580 per cent in 3 years with a PE of 54.3x, an ROE of 5 per cent and an ROCE of 9 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.