Bajaj Hindusthan Sugar Adjusts Evaluation Amid Rising Profitability and Debt Concerns

Bajaj Hindusthan Sugar, a small-cap player in the sugar industry, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in technical trends, moving from a mildly bearish stance to a mildly bullish outlook.
Key financial metrics indicate that the company has experienced a notable operating profit to interest ratio, reaching its highest level at 12.10 times. Additionally, cash and cash equivalents have also peaked at Rs 73.56 crore, while the profit before depreciation, interest, and taxes (PBDIT) for the latest quarter stands at Rs 285.59 crore. Despite these positive indicators, the company faces challenges, including a high debt to EBITDA ratio of 19.57 times, which raises concerns about its ability to service debt.

Over the past year, Bajaj Hindusthan Sugar has generated a return of -33.74%, significantly underperforming compared to the broader market, which has seen a return of 2.20%. The company has also reported a negative return on equity, compounded by the fact that 100% of promoter shares are pledged, adding pressure in a declining market.

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