Indian sugar maker EID-Parry's Q2 profit grows on domestic demand and prices

E I D-Parry (India)

08/11/2023 10:39

BENGALURU, Nov 8 (Reuters) - Indian sugar maker E.I.D.-Parry  EIDP.NS  reported its first
profit growth in four quarters on Wednesday as a rise in domestic demand and prices offset the
government's export restrictions, sending shares up as much as 5%.
    Profit after tax rose 1.2% year-on-year to 861.8 million rupees ($10.35 million) in the quarter
ended Sept. 30.
    Revenue from operations rose 12.7% to 7.26 billion rupees.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3C91EC    
        
KEY CONTEXT

    India, the world's second-biggest sugar producer, saw its weakest monsoon since 2018, leading to
a rise in prices.
    According to Elara Capital, sugar prices in India increased 5-8% year-on-year in the second
quarter.
    India had allowed mills to export only 6.2 million tons of sugar during the 2022-2023 season to
Sept. 30, after letting them sell a record 11.1 million tons in the 2021-2022 season.    

PEER COMPARISON
    
                             Valuation (next 12    Estimate  Analyst                            
                                  months)          s (next     s'                               
                                                      12     sentime                            
                                                   months)     nt                               
                RIC        PE      EV/EBIT  Price  Revenue   Profit   Mean     # of    Stock    Div
                                   DA       /Sale  growth    growth   rating*  analys  to       yield
                                            s                                  ts      price    (%)
                                                                                       target*  
                                                                                       *        
 E I D-Parry     EIDP.NS    27.25    37.43  NULL    -1.60     15.20   Strong        1   0.77     1.99
 (India) Ltd                                                          Buy                       
 Balrampur       BACH.NS    13.78    10.88   3.57   11.91     35.61   Buy           4   0.95     0.58
 Chini Mills                                                                                    
 Ltd                                                                                            
 Dhampur Sugar   DAMS.NS     8.87     5.37   3.60    NULL     NULL    Buy           1   0.78     1.89
 Mills Ltd                                                                                      
 Dalmia Bharat   DLMI.NS    10.95     5.72  NULL     8.73     NULL    Buy           1   0.87     0.86
 Sugar and                                                                                      
 Industries                                                                                     
 Ltd                                                                                            
    
        
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT   
   
JULY-SEPT STOCK PERFORMANCE
    
        
    
-- All data from LSEG
-- $1 = 83.2550 Indian rupees    
    
    

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EID-Parry (India) shares vs Peers (Final)    https://tmsnrt.rs/3Qwz8H6
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Sohini Goswami)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))