Avadh Sugar & Energy Ltd (AVADHSUGAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dwarikesh Sugar

Dalmia Bharat

Avadh Sugar

Dhampur Bio

Dhampur Sugar

Bajaj Hindusthan

Uttam Sug.Mills

M.V.K. Agro

Zuari Industries

Bannari Amm.Sug.

Sh.Renuka Sugar

Why is Avadh Sugar & Energy Ltd ?

Weak Long Term Fundamental Strength with a -5.69% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.36 times
The company has been able to generate a Return on Capital Employed (avg) of 9.94% signifying low profitability per unit of total capital (equity and debt)

Flat results in Jun 26

INTEREST(Latest six months) At Rs 43.57 cr has Grown at 63.06%
ROCE(HY) Lowest at 6.50%
DEBTORS TURNOVER RATIO(HY) Lowest at 45.71 times

With ROCE of 6.3, it has a Attractive valuation with a 1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 38.42%, its profits have fallen by -5.1%

Despite the size of the company, domestic mutual funds hold only 0.03% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Avadh Sugar should be less than 10%
Overall Portfolio exposure to Sugar should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Avadh Sugar for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Avadh Sugar

38.46%

0.96

39.90%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.07%

EBIT Growth (5y)

-5.69%

EBIT to Interest (avg)

2.72

Debt to EBITDA (avg)

3.82

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

1.42

Tax Ratio

34.95%

Dividend Payout Ratio

22.76%

Pledged Shares

Institutional Holding

1.74%

ROCE (avg)

11.38%

ROE (avg)

10.45%

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

1.06

EV to EBIT

15.55

EV to EBITDA

11.34

EV to Capital Employed

1.03

EV to Sales

0.94

PEG Ratio

Dividend Yield

1.67%

ROCE (Latest)

6.31%

ROE (Latest)

5.98%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

2What is working for the Company

PAT(9M)

Higher at Rs 73.84 Cr

NET SALES(Q)

Highest at Rs 779.25 cr

-7What is not working for the Company

INTEREST(Latest six months)

At Rs 43.57 cr has Grown at 63.06%

ROCE(HY)

Lowest at 6.50%

DEBTORS TURNOVER RATIO(HY)

Lowest at 45.71 times

NON-OPERATING INCOME(Q)

is 486.49 % of Profit Before Tax (PBT

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Here's what is working for Avadh Sugar

Net Sales - Quarterly

Highest at Rs 779.25 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Nine Monthly

Higher at Rs 73.84 Cr

than preceding 12 month period ended Jun 2026 of Rs 63.42 cr

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

PAT (Rs Cr)

Here's what is not working for Avadh Sugar

Interest - Latest six months

At Rs 43.57 cr has Grown at 63.06%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 486.49 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 45.71 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio