Stock Performance and Market Context
The stock price of Bajaj Hindusthan Sugar Ltd declined by 3.91% on the day, underperforming the sugar sector by 2.22%. This marks the third consecutive day of losses, with the stock falling by 7.79% over this period. The current price of Rs.16.45 is substantially lower than its 52-week high of Rs.30.88, representing a decline of nearly 46.7% from that peak.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market benchmark, the Sensex, which despite a recent three-week decline of 3.72%, remains 4.34% below its own 52-week high of 86,159.02 points.
Financial Metrics and Fundamental Assessment
Bajaj Hindusthan Sugar Ltd’s financial health continues to reflect challenges. The company reported operating losses, contributing to a weak long-term fundamental strength assessment. Its debt servicing capacity is notably constrained, with a Debt to EBITDA ratio of 22.71 times, indicating a high leverage burden relative to earnings before interest, taxes, depreciation, and amortisation.
Recent quarterly results highlight a net loss after tax (PAT) of Rs.-105.07 crores, a decline of 39.6% compared to previous periods. Operating cash flow for the year stood at Rs.303.47 crores, the lowest recorded in recent years. The operating profit to interest coverage ratio has deteriorated to -21.22 times, underscoring the company’s difficulty in meeting interest obligations from operating profits.
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Shareholding and Valuation Concerns
One notable risk factor is the 100% pledge of promoter shares, which can exert additional downward pressure on the stock price, especially in volatile or falling markets. This situation often raises concerns about liquidity and potential forced selling.
Valuation metrics also indicate elevated risk. The stock is trading at levels considered risky relative to its historical averages. Over the past year, Bajaj Hindusthan Sugar Ltd has generated a negative return of 45.28%, while its profits have contracted sharply by 718.9%. This stark decline in profitability further weighs on investor sentiment and valuation.
Comparative Performance and Sector Positioning
When compared to the broader market, the stock’s underperformance is pronounced. The Sensex has delivered a positive return of 7.17% over the last year, contrasting sharply with Bajaj Hindusthan’s negative returns. Additionally, the stock has lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in both the near and long term.
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Mojo Score and Market Capitalisation
The company’s Mojo Score currently stands at 3.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 11 July 2025. This grading reflects the deteriorated financial and operational metrics. The market capitalisation grade is rated at 3, indicating a mid-tier market cap but with significant concerns over fundamentals and price performance.
These ratings are consistent with the stock’s recent price action and financial disclosures, underscoring the challenges faced by Bajaj Hindusthan Sugar Ltd in regaining investor confidence and market stability.
Sector and Broader Market Dynamics
The sugar sector, in which Bajaj Hindusthan operates, has experienced volatility due to fluctuating commodity prices and regulatory factors. While the Sensex opened flat on the day, it subsequently declined by 634.38 points (-0.81%) to close at 82,573.00, reflecting broader market pressures. The Sensex’s 50-day moving average remains above its 200-day moving average, suggesting a longer-term positive trend despite recent setbacks.
In contrast, Bajaj Hindusthan’s stock continues to trade below all major moving averages, highlighting its relative weakness within the sector and market.
Summary of Key Financial Indicators
To summarise, Bajaj Hindusthan Sugar Ltd’s key financial indicators as of the latest reporting period include:
- Operating cash flow (annual): Rs.303.47 crores (lowest recorded)
- Net loss after tax (quarterly): Rs.-105.07 crores, down 39.6%
- Operating profit to interest coverage ratio: -21.22 times
- Debt to EBITDA ratio: 22.71 times
- Promoter share pledge: 100%
- One-year stock return: -45.28%
- Profit decline over one year: -718.9%
These figures collectively illustrate the financial pressures and valuation challenges currently faced by the company.
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