Net sales at Dhampur Sugars were down by nearly 4% at Rs.888 crore but the net profits went up 3-fold to Rs.107 crore in the fourth quarter.
EBITDA of the company shot up from Rs.10 crore to Rs.192 crore. However, you need to remember that this sharp rise in profits was largely due to closing stock adjustment and that is not a real growth inducing factor.
Sugar sector remains under pressure due to a glut of supply in the market and that is unlikely to change after another year of record production in the latest sugar cycle. Hence, if you are already long on the stock at lower levels, you must look at taking profits off the table. That could be your best choice.