1. Company Overview

Established in 1933, Dhampur Sugar Mills Limited is one of India’s oldest and most prominent integrated sugarcane processing companies. Headquartered in Dhampur, Uttar Pradesh, it operates multiple production units across the state. The company is publicly listed on both the NSE and BSE under the ticker symbol DHAMPURSUG, and has earned a reputation for combining traditional sugar production with modern industrial integration and sustainability practices.

2. Business Model & Segments

Dhampur Sugar operates on an integrated business model, maximizing value from sugarcane by engaging in six major segments: sugar manufacturing, power co-generation using bagasse, ethanol and alcohol production through its distillery, chemical manufacturing (notably ethyl acetate), country liquor under potable spirits, and ancillary activities including the sale of agricultural products and petrol. The company efficiently uses by-products from one vertical to fuel another, ensuring cost-efficiency and environmental responsibility.

3. Operational Highlights

Dhampur Sugar operates with a sugarcane crushing capacity of approximately 15,000 tonnes per day (TCD), and a co-generation power capacity of 126.5 megawatts (MW), out of which a significant portion is exported to the grid. The company also maintains robust ethanol and spirit production capabilities through its distilleries, and it continues to expand its chemical production line focused on ethyl acetate. These diversified operations ensure efficient resource utilization and strengthen the company’s presence across multiple industrial verticals.

4. Recent Developments

In recent months, the company has faced operational challenges stemming from higher inventory levels due to government-imposed restrictions on ethanol production from sugar and sugar export limitations. Despite this, Dhampur announced a share buyback program in May 2025, indicating management’s confidence in the company’s future growth and intrinsic value. This move also highlights its commitment to enhancing shareholder returns amidst a challenging regulatory environment.

5. Stock Market Metrics (as of May 2025)

As of May 2025, Dhampur Sugar Mills has a market capitalization of approximately ₹974 crore, with its shares trading around ₹149. The stock currently has a Price-to-Earnings (P/E) ratio of 18.7 and a book value per share of ₹176, suggesting it trades at a discount to its intrinsic value. Notably, the company does not currently offer a dividend, which may reflect its focus on reinvesting earnings for growth and operational expansion.