Bannari Amman Sugars Ltd (BANARISUG) 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

Dalmia Bharat

Dhampur Sugar

Balrampur Chini

Triven.Engg.Ind.

Piccadily Agro

Bajaj Hindusthan

Bannari Amm.Sug.

Avadh Sugar

Uttam Sug.Mills

M.V.K. Agro

Sh.Renuka Sugar

Why is Bannari Amman Sugars Ltd ?

Weak Long Term Fundamental Strength with a -1.16% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.50% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET SALES(Q) At Rs 282.29 cr has Fallen at -46.9% (vs previous 4Q average)
PBDIT(Q) Lowest at Rs 3.65 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 1.29%

With ROE of 7.7, it has a Expensive valuation with a 2.4 Price to Book Value

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 -6.77%, its profits have risen by 41.3% ; the PEG ratio of the company is 0.8

Despite the size of the company, domestic mutual funds hold only 0% 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 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 Sugar)

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

Is Bannari Amm.Sug. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Bannari Amm.Sug.

-7.82%

-0.50

15.72%

Sensex

-8.84%

-0.68

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.19%

EBIT Growth (5y)

-1.16%

EBIT to Interest (avg)

18.32

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.99

Tax Ratio

16.65%

Dividend Payout Ratio

14.98%

Pledged Shares

Institutional Holding

0.27%

ROCE (avg)

9.14%

ROE (avg)

7.50%

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

2.39

EV to EBIT

31.49

EV to EBITDA

21.76

EV to Capital Employed

2.61

EV to Sales

2.24

PEG Ratio

0.75

Dividend Yield

0.34%

ROCE (Latest)

8.28%

ROE (Latest)

7.73%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

9What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 59.84 times

PAT(9M)

Higher at Rs 132.67 Cr

-11What is not working for the Company

NET SALES(Q)

At Rs 282.29 cr has Fallen at -46.9% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 3.65 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 1.29%

PBT LESS OI(Q)

Lowest at Rs -12.06 cr.

NON-OPERATING INCOME(Q)

is 180.83 % of Profit Before Tax (PBT

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Here's what is working for Bannari Amm.Sug.

Profit After Tax (PAT) - Latest six months

At Rs 89.97 cr has Grown at 40.64%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 59.84 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Bannari Amm.Sug.

Net Sales - Quarterly

At Rs 282.29 cr has Fallen at -46.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 532.06 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -12.06 cr has Fallen at -126.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 44.99 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 282.29 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 3.65 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 1.29%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -12.06 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 180.83 % 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

Non Operating Income - Quarterly

Highest at Rs 26.98 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income