At the moment, we advocate two shares, one from the sugar sector and one other from the chemical compounds sector, as really useful by the Commerce Brains Portal, to purchase for an upside potential of greater than 33%. India is the world’s sixth largest chemical producer and third largest in Asia, contributing 7% to the nation’s GDP. The chemical sector, valued at roughly US$250 billion in 2024, is anticipated to develop to US$300 billion by 2025 and attain US$1 trillion by 2040.
On the identical time, India’s sugar trade stands because the second-largest producer globally and the biggest client of sugar, with key manufacturing hubs in Maharashtra, Karnataka, and Uttar Pradesh. We additionally analysed the market’s efficiency on Wednesday to know what could lie forward for the inventory indices within the coming days.
- Present value: ₹ 389
- Goal value: ₹ 520
- Upside: 33.7%
- Timeframe: 12 Months
To view the report for the inventory talked about above or discover different inventory suggestions, click on right here
Why it’s really useful
Dalmia Bharat Sugar & Industries Ltd ventured into the sugar sector within the mid-Nineties, establishing its first plant in Ramgarh, Uttar Pradesh, in 1994. Regardless of being a comparatively new entrant, it has emerged as considered one of India’s largest sugar producers. The corporate is concerned in producing sugar, industrial alcohol, and refractory supplies, and likewise operates within the energy technology house. With a complete sugarcane crushing capability of 43,200 TCD, Dalmia ranks among the many nation’s prime sugar producers. It operates as a completely built-in enterprise with 138 MW of cogeneration capability and 950 KLPD of distillery capability, supported by incineration boilers.
In FY25, Dalmia reported working income of Rs 3,746 cror e, reflecting a sturdy 29% year-on-year development. EBITDA stood at Rs 544 crore, whereas revenue after tax (PAT) was Rs 387 crore. The corporate achieved record-high home sugar gross sales of 5.9 lakh metric tons (LMT), which helped decrease its closing stock to three.8 LMT from 4.3 LMT in FY24.
It additionally recorded its highest-ever common sugar realisation at Rs 38 per kg. The grain-based distillery produced 6.2 crore litres throughout FY25, marking a 72% improve from the earlier yr as a consequence of expanded capability. Home sugar gross sales rose by 22%, from 1.1 LMT in This fall FY24 to 1.4 LMT in This fall FY25, whereas exports doubled to 0.1 LMT over the identical interval.
In Q1 FY26, the corporate reported income from operations of Rs 943 crore, PAT at Rs 38.37 crore, and sugar gross sales stood at 1.5 LMT. The distillery quantity elevated by 21% YoY, at 5.2 crore litres. The corporate delivered a mean sugar NSR of Rs 39.8/kg, a rise of 5% YoY. This was primarily pushed by increased volumes in grain distilleries and better sugar NSR.
Going ahead, the administration expects a promising outlook on the sugarcane trade based mostly on above-normal rainfall with optimum distribution and expects a rise within the minimal promoting value (MSP) of sugar will help the trade, and a rise in ethanol costs for the ethanol provide yr 2025-26, coupled with a discount in grain costs, would strengthen the profitability of the distillery section.
As per ICRA, an above-average monsoon is anticipated to spice up sugarcane cultivation in Maharashtra and Karnataka, resulting in improved yields in key sugar-producing states. In consequence, sugar manufacturing is projected to rise by 15% within the upcoming season. Gross sugar output is estimated to extend to 34 million metric tonnes within the Sugar Yr (SY) 2026, up from 29.6 million MT in SY2025.
After accounting for the estimated diversion of 4 million MT for ethanol manufacturing, internet sugar manufacturing is prone to develop to 30 million MT in SY2026 from 26.2 million MT in SY2025. In the meantime, home sugar costs, at the moment ranging between Rs. 39 and Rs. 41 per kg, are anticipated to stay regular till the subsequent season begins, supporting the profitability of sugar mills.
India leads world sugar manufacturing, with Uttar Pradesh as the highest sugarcane-producing state, adopted by Maharashtra and Karnataka. The nation can be the third-largest sugar exporter globally. In line with the USDA, India’s sugar output is anticipated to achieve 35 million metric tons uncooked worth (MMT-RV) within the 2025-26 advertising yr, up 26% from the revised present estimate of 28 million tons.
Threat Elements
The sugar trade is cyclical and closely reliant on beneficial climate situations, agricultural productiveness, and cane availability. Erratic monsoons or diminished yields can negatively impression Dalmia’s operations. Moreover, the trade is topic to stringent laws underneath the Sugar (Management) Order, which governs inventory limits, transport protocols, and gross sales restrictions and mandates the government-fixed Truthful and Remunerative Worth (FRP) for sugarcane. Failure to adjust to these laws might pose operational challenges for the corporate.
- Present value: ₹ 3,112
- Goal value: ₹ 3,650
- Upside: 17.3%
- Timeframe: 16-24 Months
To view the report for the inventory talked about above or discover different inventory suggestions, click on right here
Why it’s really useful
Pidilite is among the main gamers within the client and speciality chemical compounds house in India, with a dominant place within the adhesives and sealants market. Its various product portfolio spans adhesives, sealants, waterproofing options, automotive and building chemical compounds, arts and crafts supplies, industrial resins, natural pigments, and polymers. As of Q1 FY26, the corporate operates 5 R&D centres in India and one in Singapore, managing over 6,100 SKUs and supported by a sturdy distribution community of greater than 5,050 distributors throughout India. Its well-known manufacturers embrace Fevicol, M-Seal, Fevi Kwik, Dr. Fixit, and Roff.
Over the previous decade, the corporate has delivered a robust consolidated internet gross sales development at a CAGR of 11%. Its EBITDA margin has seen a constant enchancment, rising from 16% in FY15 to 23% in FY25. In FY25, internet gross sales stood at Rs 13,094 crore, up 6% from Rs 12,337 crore in FY24. EBITDA grew by 11% year-on-year to Rs 3,013 crore, in comparison with Rs 2,707 crore in FY24. Revenue after tax for FY25 reached Rs 2,096.17 crore, reflecting a 20% improve from Rs 1,747.42 crore within the earlier fiscal.
The corporate maintains a well-diversified portfolio, catering to a broad spectrum of industries, together with infrastructure, actual property, packaging, paper, leather-based, and paints. It’s actively exploring high-growth sectors resembling electronics, EVs, and semiconductors, having entered into an unique partnership with CollTech Group, a specialist in electronics adhesive options.
This collaboration is anticipated to considerably strengthen each firms’ positions within the fast-evolving electronics market. Moreover, the Roff model presents robust development alternatives, backed by the increasing tile market, which was valued at Rs 43,000 crore in FY24 and is projected to develop to Rs 62,000 crore by 2027.
Key development drivers for the corporate embrace growing penetration in rural and semi-urban areas, together with a strategic give attention to worldwide enlargement by means of numerous enterprise fashions. From a broader trade perspective, India’s speciality chemical compounds sector is anticipated to see sturdy development, with its world market share anticipated to rise from 3-4% in 2021 to six% by 2026. In line with a CRISIL report, this development trajectory might allow India to outpace China within the section, positioning it as a significant participant within the world speciality chemical compounds market.
In Q1 FY26, the corporate reported a ten.5% year-on-year improve in income from operations, rising from Rs 3,395.35 crore in Q1 FY25 to Rs 3,753.1 crore. EBITDA grew by 15.8% YoY, reaching Rs 941 crore for the quarter. Revenue earlier than tax rose by 19.1% to Rs 916.47 crore, in comparison with Rs 769.63 crore in the identical interval final yr. In the meantime, Revenue After Tax noticed an 18.7% improve, climbing to Rs 678.13 crore in Q1 FY26 from Rs 571.27 crore in Q1 FY25.
Threat Issue
A good portion of the corporate’s uncooked supplies is linked to crude oil, making it weak to cost volatility. Important inputs resembling vinyl acetate monomer (VAM), artificial resins, and different crude oil derivatives are essential to Pidilite’s operations. Moreover, the corporate faces publicity to geopolitical and financial uncertainties as a consequence of its worldwide presence in markets like Bangladesh, Sri Lanka, and a number of other African nations. In consequence, heightened geopolitical tensions or fluctuations in enter prices might probably disrupt its provide chain and impression general operations.
Market Recap September third, 2025
On Wednesday, the Nifty 50 opened at 24,616.50, up 36.90 factors from the earlier shut of 24,579.60. It touched an intraday excessive of 24,737.05 and ended the session at 24,715.05, registering a achieve of 135.45 factors or 0.55%. Whereas the index closed beneath its 20-day and 50-day EMAs, it remained above the 100-day and 200-day EMAs on the day by day chart.
The BSE Sensex mirrored this constructive momentum, rising 409.83 factors or 0.51%. It opened at 80,295.99 and settled at 80,567.71. When it comes to technical indicators, the Nifty 50’s Relative Energy Index (RSI) stood at 48.51, and the Sensex RSI was at 46.01, each comfortably beneath the overbought threshold of 70. The Financial institution Nifty additionally posted features, climbing 406.55 factors or 0.76% to shut at 54,067.55.
Most sectoral indices ended within the inexperienced, with the Nifty Metallic Index main the pack. It surged 292.05 factors or 3.11% to shut at 9,676.40, pushed by robust performances from Tata Metal, Jindal Metal, SAIL, and Hindustan Copper, which rallied as much as 5.97%. The Nifty Pharma Index additionally posted notable features, closing at 21,959.60, up 239.65 factors or 1.10%. Glenmark Pharma led the features with a 4.46% rise, adopted by Lupin (+3.25%) and Ajanta Pharma (+3.1%).
The Nifty Healthcare Index was one other prime performer, ending at 14,496.65, up 154.35 factors or 1.08%. On the flip aspect, the Nifty IT Index was the largest drag, falling 262.95 factors or 0.74% to 35,474.95, with Infosys down 1.31% and different IT shares like Coforge, LTIMindtree, and Oracle Monetary Providers shedding as much as 1.30%. The Nifty Media Index additionally slipped marginally by 0.04%, closing at 1,621.95, with losses in Nazara Applied sciences, Suggestions Music, Solar TV, and Dish TV of as much as 1.98%.
Within the broader Asian markets, sentiment was largely detrimental. Hong Kong’s Dangle Seng Index declined 169.55 factors or 0.67% to 25,327.00, whereas the Shanghai Composite fell 44.57 factors or 1.17% to shut at 3,813.56. Japan’s Nikkei 225 additionally ended within the crimson, dropping 380.49 factors or 0.91% to 42,930. Nonetheless, South Korea’s KOSPI bucked the development, gaining 12.07 factors or 0.38% to shut at 3,184.42. In the meantime, U.S. Dow Jones Futures have been buying and selling barely increased at 45,308.56, up 12.75 factors or 0.03%, as of 4:50 p.m. IST.
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