Mumbai, March 8, 2024 – Dwarikesh Sugar Industries Ltd. has announced its decision to buy back shares from its shareholders. Let us explore the implications of this decision for the retail investors in this blog.

What’s Happening?

The company plans to buy back 30,00,000 fully paid-up equity shares. These shares have a face value of Re. 1 each. Dwarikesh Sugar is offering Rs. 105 for each share, making the total buyback amount up to Rs. 31.50 crores. This buyback is about 1.59% of the company’s total paid-up equity share capital.

Why This Matters

Whenever a company buyback shares, its a good sign as it indicates the confidence of promoters on the company. By buying back shares, a company can offer a return to shareholders, potentially increasing the value of remaining shares. It also shows that the company is in a strong financial position, capable of returning money to shareholders.

Shareholder Participation

Shareholders who own shares as of March 20, 2024, the record date, are eligible to participate in this buyback. The buyback process will be carried out through a tender offer, where shareholders can offer some or all of their shares back at the stated price. So, do you hold Dwarikesh sugar and willing to participate?

Company’s Commitment

The board’s decision to proceed with this buyback reflects Dwarikesh Sugar’s commitment to its shareholders. It aims to improve shareholder value and optimize the company’s capital structure.

Next Steps for Shareholders

Details about how to participate in the buyback, including the procedure for tendering shares, will be shared with eligible shareholders through an offer document. We will keep you updated on Tradealone as well.

About Dwarikesh Sugar Industries Ltd.

Dwarikesh Sugar is a significant player in the sugar industry, with operations spanning sugar production, by-products, and value-added products like ethanol and power. The company operates three plants in Uttar Pradesh with a strong focus on sustainability and efficiency.

For further information, shareholders can consult the official BSE notification.

Sigachi Industries Limited, a well known name in pharmaceuticals, and iMass Investment have signed a joint venture, Sigachi Global. This partnership marks a strategic entry into the emerging food and pharma market of the United Arab Emirates.

Sigachi Global: A Fusion of Expertise

Sigachi MENA FZCO, a wholly-owned subsidiary of Sigachi Industries, and iConsult Trading Consultancy LLC, under the iMass Investments umbrella, have created Sigachi Global. This joint venture symbolizes a fusion of Sigachi’s pioneering technology in Pharma (excipients and APIs), Food and Nutrition, and iMass/iConsult’s profound market insights. Holding a 75% stake, Sigachi MENA FZCO, with iConsult’s 25%, sets the stage for an ambitious journey with projected revenues of USD 54 Million by 2029.

Strategic Expansion into the UAE Market

Amit Raj Sinha, CEO of Sigachi Industries, expressed enthusiasm for the partnership. He highlighted the unique combination of iConsult’s market acumen and Sigachi’s innovative products. “This collaboration not only aligns with our vision to broaden our global footprint,” Sinha noted, “but also enables us to meet the dynamic needs of the food and pharma sectors with high-quality ingredients and solutions.”

Khaled A. Al Mass, the visionary founder of iMass Investments and chairman of iConsult, shared his excitement about the venture. “Our partnership with Sigachi is a testament to our commitment to driving innovation and sustainable growth within the Gulf’s food and pharma industries,” he remarked. “Together, we’re set to redefine standards and cater to the specific requirements of our customers.”

The Joint Venture’s Offerings and Goals

Sigachi Global aims to capitalize on the synergies between Sigachi’s state-of-the-art technology and iMass/iConsult’s extensive market knowledge. This strategic alignment is poised to deliver unparalleled products and services to the GCC market.

Vision for the Future

This joint venture is a shared vision to foster growth, innovation, and sustainability in the food and pharma sectors. By combining their strengths, Sigachi and iMass are aiming to meet the current demands of the market and shape future trends.

About Sigachi Industries Limited

With over three decades of dedication, Sigachi Industries has cemented its position as a trusted partner in the global pharma and nutraceutical sectors. The company’s commitment to quality is reflected in its diverse product range. Based in Hyderabad, India, Sigachi continues to expand its global presence, with subsidiaries in the US and UAE.

About iMass Investments

Since its inception in 2007, iMass Investments has been at the forefront of fostering innovative partnerships and pursuing ambitious projects. Headquartered in Abu Dhabi, the company leverages its strategic Middle Eastern location to expand its influence globally, driven by a commitment to excellence and innovation.

For more information, please contact:

• Sigachi Industries Limited
• Email: info@sigachi.com
• Customer Service: +91 40 40114874 – 76
• Website: www.sigachi.com
• iMass Investments
• Explore further ventures and projects at iMass Investments.

Embark on this transformative journey with Sigachi Global, where innovation meets excellence, shaping the future of the food and pharma industries in the UAE and beyond. Keep following us for more such news. Check a list of multibagger stocks here.

Star Cement (SCL) dominates the northeastern Indian cement industry and is on track for significant growth, driven by strategic capacity expansions and a strong operational framework. The company currently boasts a cement capacity of 5.7 million tonnes per annum (mtpa), which includes an essential integrated unit in Meghalaya and grinding units in Assam and West Bengal. Star Cement has laid out a strategic roadmap to significantly enhance its production capacity.

Expansion: The Path to Doubling Capacity

Star Cement’s vision extends far beyond current achievements. With plans to escalate its grey cement capacity to 9.7 mtpa by FY26 and a long-term goal to hit 20 mtpa by 2030, the company is gearing up for substantial growth. The upcoming expansions include two grinding units in Assam and a clinker unit in Meghalaya, expected to be operational by Q4FY24 and Q2FY26, respectively. This expansion is not just about volume; it’s a strategic move to cement Star Cement’s market leadership in the northeast, aiming to elevate its market share from 24-25% to 30-32%.

Superior Margins: A Competitive Edge

Star Cement enjoys a distinct advantage in the northeast, thanks to its favorable market mix and government incentives, which have historically secured it superior EBITDA margins. With a current EBITDA/ton at ₹1244 in 9MFY24, the company’s focus on cost efficiencies, premium cement offerings, and operational leverage is expected to boost its EBITDA/ton to ₹1489 by FY26E.

Financial Health and Valuation

ICICI Direct’s analysis forecasts a revenue CAGR of ~12% over FY23-26E, with EBITDA and PAT CAGR at ~22% and ~24%, respectively. Despite the significant capital expenditure for its expansion, Star Cement is expected to maintain a healthy balance sheet, projecting a net cash position in FY26E. This financial stability, coupled with an anticipated improvement in asset turnover and margins, underscores the company’s robust return ratios.

The valuation of Star Cement at 8.8x EV/EBITDA on an FY26E basis presents an attractive investment proposition, reflecting confidence in the company’s growth potential and market position enhancement in the northeast. Therefore, ICICI Direct assigns a target price of Rs 240 to Star Cement, categorizing it as a “BUY” with high conviction.

Conclusion

Star Cement stands at a pivotal juncture, with strategic expansions set to drive volume growth and further solidify its leadership in the northeast Indian cement sector. The company’s focus on enhancing margins, coupled with its ambitious capacity expansion plans, positions it as a compelling investment opportunity. Over the last few year stock price for Star cement has almost doubled and market cap has grown to 8k crores.

Also read the full report by ICICI Direct here. Keep following Tradealone for latest news.