Considering both are in an industry with tailwinds and have done significant capex (I assume capex is completed), both could be good investment candidates. Since cashflow parameters aren’t mentioned, let’s assume they are equally capable on cashflow conversion (probably an oversimplification but let’s proceed).

It all depends on risk appetite and starting valuations.

Company A’s recent past is chequered and you mention this is due to incorrect vision, so is there reason to doubt management’s capabilities and decision making? Due to suppressed RoE and margins, with better margins and growth coming back you can expect earnings growth and rerating. Look at mean margins and increasing utilisation for forecasting. How much can they grow the business in a good cycle? Put together with your exit multiple, you could estimate the returns.

Company B is already probably a market leader thanks to sustained higher margins. How much can this company grow? With same margins, the returns should mimic the earnings growth largely. Importantly, are there levers for margins expansion through operating leverage or efficiencies? This would add to returns above.

One thing to note is typically during a good cycle, you never know for sure if the growth is sustainable or just a good cycle upbeat.

I think they are referring to small increase in holding inching towards 1%.

This is a little surprising meaning that promoter offloadednthe stake to public via HFT firms maybe, purely speculating.

where did you find this information? Screener does not show any FII and DII holding at Dec23 and the names appearing in Public category do not seem like DII, as per my knowledge

It was raised in the call, management said their board will discuss about the paused ethanol plant or converting current plant to multi-feed, but I felt they don’t see the economics of it currently as maize prices apparently have shot thru the roof after govt recently notified maize based ethanol price.

Dalmia have paused their Nigohi grain distillery plant (250 KLPD) which was supposed to come on stream in another 7-8 months. Dalmia is the best run sugar company (biased personal opinion), their next expansion is only in FY27, bringing on a new mill in UP acquired recently. But stock in my opinion isn’t under-valued, and if its upside is worth all the aggravation in this industry.