Darling Ingredients Inc. (NYSE: DAR)

Darling Ingredients Inc. (NYSE: DAR) is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer industries. Its segments include Feed Ingredients, Food Ingredients and Fuel Ingredients.

Recommendation Rationale – SELL at USD 44.00

• Financial Highlights: DAR’s long-term debt, net of the current portion, increased to USD 4,026.73 million as of September 27, 2025, compared to USD 3,908.98 million as of December 28, 2024. Net cash provided by operating activities declined 9.61% to USD 619.11 million in 9MFY25, compared to USD 684.89 million in 9MFY24.
• Trading Near the Resistance: DAR stock has closed at its R2 level recommended on 02 December 2025. Therefore, share price can face resistance at the current levels.
• Market Risk: Darling Ingredients is exposed to significant market risks arising from volatility in commodity prices, including raw materials, energy, and finished product pricing, which can impact margins. The company also faces interest rate risk due to its substantial variable-rate debt, as well as foreign exchange risk from its global operations. Additionally, earnings remain sensitive to regulatory and tax credit changes affecting renewable fuels and joint venture performance.

DAR’s Daily Price Chart

Valuation Methodology: P/E Multiple Approach (FY December'26E) (Illustrative)

Stock might trade at a slight discount to its peers considering the risks related to the international sales and operations, unfavourable export or import markets, etc. For conducting the valuation, the following peers were included: Hormel Foods Corp (NYSE: HRL), Tyson Foods Inc (NYSE: TSN), and Lamb Weston Holdings Inc (NYSE: LW).

Considering the stock’s current trading levels, macroeconomic uncertainty, share price movement, and risks associated, the share price can face consolidation at the current levels.

Hence, a ‘Sell’ recommendation is given on the stock at the closing price of USD 44.00, up by 3.77% as of 27 January 2026.

Darling Ingredients Inc. (NYSE: DAR) is part of Global Agriculture Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 27, 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.