Davangere Sugar Company Ltd (DSCL) is an integrated Indian firm specializing in sugar production, ethanol manufacturing, co-generation of power, and distillery operations. Established in 1970, it operates a 6000 TCD sugar mill in Karnataka, producing sugar, molasses, electricity, and biofuels. As of October 21, 2025, the davangere sugar share price is approximately ₹3.47, with a market capitalization of around ₹500 crore. Financials show a trailing P/E of 27.16, EPS of about ₹0.14 (based on FY25 estimates), and book value per share of roughly ₹5-6, amid moderate profitability with EBITDA at ₹53.75 crore in FY25. The company faces challenges like inconsistent revenues and debt, but benefits from India’s ethanol blending push and renewable energy focus. Investor appeal lies in expansion plans, though market sentiment is cautious due to valuation concerns. The davangere sugar stock forecast 2030 anticipates gradual upside if biofuel demand surges, with long-term potential in sustainable operations. Projections indicate base case targets from ₹5 in 2026 to ₹40+ by 2050, but risks persist—research thoroughly before investing.
Table of Contents
Company Overview
Founded in 1970, Davangere Sugar Company Ltd initially operated as a joint venture before transitioning to private management. Its core businesses encompass sugar manufacturing (with a 6,000-tonne crushed per day capacity), cogeneration of electricity from bagasse, a distillery for ethanol and spirits, and ancillary segments like aviation and others.
The company contributes significantly to India’s sugar and biofuel sectors, producing white sugar, molasses, rectified spirit, and extra neutral alcohol. Major projects include its integrated plant in Kukkuwada village, Davangere, which supports cogeneration up to 24 MW and ethanol output expansion. Subsidiaries or arms handle specific operations, though the firm operates largely as a unified entity.
Financial health reflects moderate stability, with FY25 EBITDA at ₹53.75 crore, but pressures from working capital debt. Market capitalisation is approximately ₹500 crore, and the current share price stands at ₹3.47 as of October 21, 2025.
Historical Stock Performance
DSCL’s stock has shown volatility tied to sugar cycle fluctuations, policy changes, and listing dynamics—the company went public on NSE in 2021. Early post-listing gains gave way to corrections amid industry headwinds.
| Year | Average Price | Major Development |
|---|---|---|
| 2020 | ₹2.50 | Pre-NSE listing phase; limited trading on BSE amid COVID disruptions in agro sector |
| 2022 | ₹4.00 | Post-IPO momentum; ethanol policy boosts sentiment |
| 2024 | ₹5.50 | Rights issue and expansion announcements; peak at ₹6.65 but closed lower on market corrections |
The stock climbed from 2020 lows during the 2021-2022 rally on biofuel optimism, but 2024 saw a pullback due to inconsistent earnings and broader small-cap pressures, with a 52-week range of ₹3.03-₹6.65.
Key Financial Indicators
Latest metrics as of October 2025 underscore a value-oriented profile with growth potential but efficiency concerns:
- Market Cap: ₹500 crore – Positions it as a microcap, offering scalability if ethanol ramps up.
- P/E Ratio: 27.16 (trailing) – Suggests moderate valuation relative to peers, though influenced by cyclical profits.
- Book Value per Share: ≈₹5.50 – Indicates underlying asset support, though below historical highs due to expansions.
- EPS (Earnings Per Share): ₹0.14 – Reflects FY25 profitability amid sales of ₹193 crore, but thin margins from input costs.
- Debt to Equity Ratio: ≈1.5 – Manageable for the industry, yet working capital loans pose interest burden risks.
- Promoter Holding: 54% (approximate, with recent minor declines) – Signals alignment, but decreases raise questions on confidence.
These indicators highlight operational resilience in a commoditised sector, yet point to the need for better efficiency to attract sustained investment.
Growth Drivers
Several catalysts could propel DSCL’s trajectory:
- Ethanol capacity expansion, aligning with India’s 20% blending target by 2025 and beyond, will open revenue from biofuels.
- Government incentives for renewable energy, including subsidies for cogeneration and sustainable farming practices.
- Strategic initiatives like COâ‚‚ recovery plants and grain-based distillery upgrades, diversifying beyond cane dependency.
- Rising domestic sugar and power demand, bolstered by farmer partnerships ensuring a steady cane supply amid urbanisation.
These elements support the Davangere Sugar share price long-term outlook, positioning the firm for integrated growth in green energy.
Risks and Challenges
Key obstacles include:
- Cyclical sugarcane supply vulnerabilities are impacted by weather, pricing policies, and farmer shifts to other crops.
- High operational costs and debt servicing exacerbate inconsistent revenue growth in a regulated industry.
- Regulatory uncertainties, such as changes in minimum selling prices for sugar or ethanol blending mandates.
- Competitive pressures from larger players and market volatility in commodities, potentially eroding margins.
Navigating these is essential for realising the Davangere Sugar future share price potential.
Davangere Sugar Co Ltd Share Price Target Predictions
Estimates are scenario-driven, factoring in industry trends, policy support, and company execution. These draw from historical patterns and sector forecasts, serving educational purposes only—not advice.
| Year | Bear Case | Base Case | Bull Case | Key Assumptions |
|---|---|---|---|---|
| 2026 | ₹3.00 | ₹5.00 | ₹7.00 | Ethanol ramp-up; moderate sugar demand |
| 2030 | ₹6.00 | ₹10.00 | ₹15.00 | Leadership in sustainable agro-industry: compounding growth |
| 2040 | ₹12.00 | ₹20.00 | ₹30.00 | Sustained green energy shift; efficiency gains |
| 2050 | ₹25.00 | ₹40.00 | ₹60.00 | Leadership in sustainable agro-industry; compounding growth |
In 2026, bear case reflects policy delays curbing ethanol gains, while bull assumes swift expansions lifting sentiment. For 2030, base case anticipates 15-20% CAGR from blending targets, but bears account for supply disruptions. The Davangere sugar price prediction 2040 builds on long-term diversification, with policy stability key to bull outcomes. By 2050, projections assume full integration into renewables, though external factors like climate change introduce uncertainty.
Expert Opinions & Market Sentiment
Analyst views on DSCL are sparse given its microcap status, with MarketsMOJO downgrading to ‘Sell’ in early 2024, citing poor efficiency and risks, though outdated amid FY25 EBITDA growth. Recent sentiment has improved slightly, with reports noting investor interest in ethanol plays—stock rose 16% in Q3 2025 per some trackers. However, overvaluation concerns persist, as per intrinsic value assessments labeling it pricey at current levels. Market buzz on platforms highlights caution, emphasising monitoring farmer ties and distillery progress for the Davangere Sugar share price target.
FAQs
What does Davangere Sugar Company Ltd do?
DSCL produces sugar, molasses, ethanol, and co-generated power, operating an integrated facility in Karnataka focused on sustainable agro-processing.
Is Davangere Sugar a good investment for the long term?
It appeals to those betting on India’s biofuel boom, but cyclical risks and thin margins suit only risk-tolerant investors.
What is the main challenge faced by Davangere Sugar?
Dependency on sugarcane availability and regulatory pricing leads to inconsistent revenues.
Will Davangere Sugar’s share price increase by 2030?
Forecasts suggest yes in base/bull scenarios (₹10-15), driven by ethanol expansion, but bears predict limited gains if policies falter.
What are Davangere Sugar’s future business plans?
Plans include boosting ethanol capacity, adding COâ‚‚ recovery, and enhancing farmer collaborations for resilient supply chains.
Conclusion
Davangere Sugar Company Ltd presents opportunities through its alignment with India’s ethanol and renewable energy ambitions, potentially unlocking value via expansions and sustainability efforts. However, challenges like supply volatility and debt management warrant vigilance. Track policy developments, quarterly earnings, and industry cycles for insights. While the Davangere Sugar Co. ltd future share price holds upside in optimistic paths, these targets are speculative estimates for learning—consult experts and diversify investments.
