About Davangere Sugar Company
Incorporated in 1970, Davangere Sugar Company Limited (DSCL) is a Karnataka-based company engaged in the integrated business of sugar manufacturing and cogeneration of power. The company started as a joint sector initiative involving government corporations and financial institutions and is now part of the Shamanur group.
Its core business involves the production of sugar and its by-product molasses from sugarcane, as well as generating electricity through a bagasse-based cogeneration plant. This model allows the company to utilize its own waste product (bagasse) to produce power, contributing to both operational efficiency and revenue from surplus power sales.
The company has shown resilience with a 36.7% Compound Annual Growth Rate (CAGR) in profit over the last five years and has actively reduced its debt. However, it faces challenges common to the sector, including low return on equity (3.17%), an elevated stock P/E ratio of 42.5, and does not pay dividends.
Comprehensive Share Price Forecast 2026-2050
This analysis provides a detailed, long-term perspective on Davangere Sugar Company’s potential share price trajectory from 2026 through 2050. This report is structured for:
- Informed investors are analyzing micro-cap opportunities in cyclical sectors.
- Long-term strategists are considering the sugar and renewable energy industry in India.
- Educational purposes to understand the modeling of long-term equity forecasts.
It is critical to note that Davangere Sugar has no active analyst coverage, making traditional long-term growth and revenue forecasts highly unreliable. The projections here are based on financial modeling, sector trends, and the company’s historical performance, and must be treated as speculative scenarios, not investment advice.
Core Business Segments
1. Sugar Manufacturing
- Production of sugar from sugarcane.
- Sale of by-product molasses.
2. Power Co-generation
- Generation of electricity using bagasse (sugarcane fiber).
- Aims for self-sufficiency and revenue from excess power sales.
Davangere Sugar Company Share Price Target 2026
In 2026, the share price will be intensely sensitive to domestic sugar prices, government ethanol blending policies, and monsoon-dependent sugarcane yields. Current technical forecasts suggest a challenging year, with algorithmic predictions indicating a potential significant decline from the current price of approximately ₹3.76.
Estimated Price Range for 2026
- Conservative Scenario: ₹1.27 – ₹1.58
- Optimistic Scenario: ₹3.17 – ₹4.30
2026 Monthly Projections (Based on Algorithmic Forecast)
Davangere Sugar Company Share Price Target 2027
By 2027, the company’s performance will hinge on its ability to stabilize operations post any potential 2026 volatility. Success in improving its low Return on Capital Employed (ROCE of 6.70%) and managing working capital days (which increased to 182 days) will be critical for investor confidence.
Estimated Price Range for 2027
- Conservative Scenario: ₹1.50 – ₹2.50
- Optimistic Scenario: ₹3.50 – ₹5.00
Key 2027 Drivers & Assumptions
- Outcome of the 2026 price correction and subsequent recovery.
- Stability in sugar realizations and cogeneration revenue.
- Continued reduction in company debt levels.
Davangere Sugar Company Share Price Target 2030
The 2030 target depends on the company’s strategic evolution within the national biofuel and renewable energy landscape. Effective capitalizing on ethanol demand and consistent operational execution could lead to a re-rating.
Estimated Price Range for 2030
- Conservative Scenario: ₹3.00 – ₹6.00
- Optimistic Scenario: ₹7.00 – ₹10.00
2030 Half-Yearly Outlook
- H1 2030: Foundation building on policy benefits.
- H2 2030: Potential for growth if sector trends are favorable.
Davangere Sugar Company Share Price Target 2040
A 15-year projection incorporates structural shifts in agriculture and energy. The company’s fate will be tied to its adaptation to climate-resilient farming, advanced bio-refinery models, and its scale relative to larger national players.
Estimated Price Range for 2040
- Conservative Scenario: ₹8.00 – ₹15.00
- Optimistic Scenario: ₹20.00 – ₹35.00
Key 2040 Growth Drivers
- Transformation into an advanced bio-energy unit.
- Sustainable sugarcane sourcing and farming partnerships.
- Valuation linked to energy output as much as sugar.
Davangere Sugar Company Share Price Target 2050
A 2050 vision is inherently speculative. Davangere Sugar could either consolidate as an efficient regional player or face relevance challenges. Its valuation will be a function of legacy asset utility, brand value in its region, and niche capabilities.
Estimated Price Range for 2050
- Base Case Scenario: ₹15.00 – ₹30.00
- High-Growth Scenario: ₹40.00 – ₹75.00+
Vision 2050 Strategic Positioning
- Potential niche operator in a consolidated industry.
- Asset valuation based on land, energy infrastructure, and local supply chain.
Financial Fundamentals Snapshot
Shareholding Pattern
| Category | Sep ’25 |
|---|---|
| Retail and Others | 58.36% |
| Promoters | 41.64% |
Long-Term Investment Thesis (2026-2050)
| Time Period | Primary Thesis | Key Risk Factors |
|---|---|---|
| 2026-2030 | High commodity price volatility, poor monsoon, sustained low ROE. | High commodity price volatility; poor monsoon; sustained low ROE. |
| 2031-2040 | Business model stability and potential regional consolidation. | High commodity price volatility, poor monsoon, and sustained low ROE. |
| 2041-2050 | Legacy and asset-based valuation in a transforming industry. | Technological disruption in agriculture/sweeteners; scale limitations. |
People Also Ask – Frequently Asked Questions
What is the share price target for Davangere Sugar in 2026?
Is Davangere Sugar a good long-term investment?
The company operates in a cyclical, capital-intensive sector with currently low profitability metrics (e.g., ROE of 3.17%). It carries high risk and is suitable only for investors who understand the sugar industry’s dynamics and can tolerate high volatility. Independent, thorough research is essential.
What are the key growth drivers for the company?
Does Davangere Sugar pay dividends?
On which stock exchanges is it listed?
Davangere Sugar Company is listed on both the Bombay Stock Exchange (BSE: 543267) and the National Stock Exchange (NSE: DAVANGERE).
What is the company’s debt situation?
Important Disclaimer
*This article is solely for educational and informational purposes. Davangere Sugar Company has no analyst coverage, and projections, especially from 2027 onward, are highly speculative models, not reliable forecasts. The stock market involves very high risks, and this is particularly true for micro-cap, cyclical stocks like Davangere Sugar. Past or projected performance does not guarantee future results. Readers must conduct their own independent research and consult with SEBI-registered financial advisors before making any investment decisions.*