look news india
Mumbai: As soon as Donald Trump assumed power in America, he had announced to consider 25 percent tariff on Mexico, Canada and then 10 percent tariff on China, but due to these aggressive steps, the matter got stuck in legal trouble. The law of depriving birthright citizenship and the issue of tariff but a sign of friendship instead of enmity with China and on the other hand China is breathing life into its markets, this is historic. After the announcement of fund disinvestment of 138 billion dollars, Indian funds are being transferred to global funds. Stock markets continued to suffer shocks. Due to increased selling in the shares of these foreign funds, Sensex has lost the level of 77000. Whereas Nifty has lost the level of 23000 at one time and has snatched the market from the hands of bulls. Sensex, Nifty based indices remained marginally supportive during the week as funds particularly put pressure on small, mid cap stocks, resulting in gap-up in many stocks taking the balance sheets of many investors into negative territory. In the last six months, people who entered the stock market and bought overvalued stocks at higher prices have started suffering huge losses. The hyper-velocity factor that drove stock prices wildly impacted the fundamentals of companies, causing losses to many investors.
Stocks rally after decline: Trump’s policy uncertainty will still shake the market
Most of the companies that have announced their quarterly results for the end of December 2024 are looking moderate to weak, increasing selling pressure on the stocks. Along with this, due to uncertainty about which and how many decisions of the Trump government will create turmoil on the global front, funds seem to be staying away from new commitments. As international crude oil prices have increased in the last few days due to Trump’s announcement of NG emergency, just as Trump seems to be retreating from his aggressive attitude in terms of tariffs, similarly in the case of renewable NG i.e. crude, Trump appears to be backing down. Oil prices have stopped rising due to the possibility of a rollback in their policy. Staying on the home ground, it is being seen that players and funds will be alert next week due to speculations about what provisions will be made in the Union Budget to be presented next Saturday, 1 February 2025. Finance Minister Nirmala Sitharaman can introduce incentives to increase the disposable income of people by giving relief in income tax. Additionally, infrastructure can boost the growth of the region by bringing in more provisions for the region. After the fall in shares, now consolidation can be seen. Since this time the day of Union Budget presentation is Saturday, the stock markets National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have decided to continue trading in the stock markets from 9:15 am to 3:30 pm for the entire session. Have decided. In the coming week, Nifty spot can be seen between 22777 to 23333 and Sensex can be seen in a wide range of 75000 to 77000.
Arjun’s Eyes: Davanagere Sugar Company Limited.
BSE (543267) and NSE (Davangere) listed, Re 1 paid up, 63% promoter stake held by Shamnoor family, Davangere Sugar Company Limited, leader in sugar, ethanol and co-generation industry and known for manufacturing high quality ethanol product. The company’s factory occupies an area of 165 acres in Kukuwada village, 18 km from Davanagere city in Karnataka state, which accounts for a significant portion of India’s total sugar production.
With an area of 4800 hectares under sugarcane cultivation, Davanagere Sugar Company Limited cultivates in sustainable partnership with farmers and has a strong network of 4990 people as of March 2024. The company has shifted its business focus from commodity producer to NG producer. For which the company has set up a jaggery/sugar syrup and grain based ethanol unit of installed capacity of 65 kg liters per day (KLPD) and started production on commercial basis. The company’s grain-based 45 KLPD expansion ethanol plant is scheduled to become operational from March 2025. With this, the ethanol production capacity of the company will increase to a total of 110 KLPD.
Grain-based ethanol and sugar ethanol are projected to remain high in 2025-26 as the government has reduced the cost of rice, with heavy availability of sugar expected in 2025-26.
Share Holding Pattern:
Davanagere Sugar Company holds 9.46 percent and the Shamanur family holds 45.55 percent, with promoters holding 63 percent, Bavaguthu Raghuram Shetty holding 2.13 percent and individual shareholders worth up to Rs 2 lakh holding 27.14 percent.
Earnings-EPS: Rs 0.45 in March 2021, Rs 1.02 in March 2022, Rs 1.48 in March 2023, Rs 1.30 in March 2024, Estimated Rs 1.45 in March 2025, Estimated Rs 1.86 in March 2026
financial result:
(1) Full year April 2023 to March 2024:
Net Income fell to Rs 216.53 crore from Rs 279.94 crore, NPM-Net Profit Margin fell to 5.65 per cent, Net Profit fell to Rs 12.24 crore from Rs 13.22 crore, Earnings per Share-EPS rose to Rs 1.30.
(2) Possible full year April 2024 to March 2025:
Net Income is expected to be Rs 245 crore. NPM-Net Profit Margin is expected to be 5.6 percent. Net Profit is expected to be Rs 13.70 crore. Earnings per Share-EPS is expected to be Rs 1.45.
(3) Possible full year April 2025 to March 2026:
Income Expected Net Income Rs. 305 NPM-Net Profit Margin 5.74 percent Net profit recorded at Rs. 17.5 Crore Earnings per Share-EPS Expected Rs. 1.86.
Since the company’s main product is sugar and its seasonal production is five to six months, there is no quarterly review of results given here.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in research sources. Consult a qualified investment financial advisor before making any investment decisions. The author, Gujarat Samachar or any other person will not be responsible for any possible loss on investment. (2) 63 percent promoted by Shamanur family (3) Company’s grain based 45 KLPD expansion ethanol plant will be commissioned from March 2025, along with increase in ethanol production, the total capacity of the company will be 110 KLPD (4) Davangere Sugar Company Limited Expected Full year 2024-25 earnings per share-EPS at Rs 1.45 vs NSE, paid-up share of Rs 1 on BSE It is trading at P/E of Rs 6 at Rs 4.14 and full year 2025-26 expected Earnings-EPS of Rs 1.86 vs Rs 3.22.