Andhra Sugars Ltd (ANDHRSUGAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

TGV Sraac

J.G.Chemicals

Indo Borax & Ch.

Andhra Sugars

Transpek Inds.

Tuticorin Alkali

Amines & Plast.

Sr.Rayala.Hypo

I G Petrochems

Chemfab Alka.

Thirumalai Chem.

Why is Andhra Sugars Ltd ?

Poor Management Efficiency with a low ROE of 9.18%

The company has been able to generate a Return on Equity (avg) of 9.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -8.87% of over the last 5 years

With ROE of 4.7, it has a Expensive valuation with a 0.6 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.06%, its profits have risen by 31.2% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.06% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Andhra Sugars for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Andhra Sugars

-24.87%

-0.74

33.55%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.54%

EBIT Growth (5y)

-8.87%

EBIT to Interest (avg)

28.64

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.27

Tax Ratio

29.66%

Dividend Payout Ratio

41.90%

Pledged Shares

0.96%

Institutional Holding

2.54%

ROCE (avg)

9.34%

ROE (avg)

9.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.62

EV to EBIT

7.55

EV to EBITDA

4.16

EV to Capital Employed

0.55

EV to Sales

0.34

PEG Ratio

0.42

Dividend Yield

1.06%

ROCE (Latest)

7.31%

ROE (Latest)

4.73%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

DPR(Y)

Highest at 41.90%

PBDIT(Q)

Highest at Rs 55.08 cr.

PBT LESS OI(Q)

Highest at Rs 34.54 cr.

PAT(Q)

Highest at Rs 30.34 cr.

EPS(Q)

Highest at Rs 2.41

-6What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 127.80 Cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.86 times

Loading Valuation Snapshot...

Here's what is working for Andhra Sugars

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 34.54 cr has Grown at 172.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 12.67 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 30.34 cr has Grown at 140.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 12.64 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 55.08 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 34.54 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 30.34 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.41

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 41.90%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Andhra Sugars

Operating Cash Flow - Annually

Lowest at Rs 127.80 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 0.86 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio