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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DCM Shriram Inds

Uttam Sug.Mills

Triven.Engg.Ind.

Zuari Industries

Balrampur Chini

Dalmia Bharat

Bannari Amm.Sug.

Piccadily Agro

Bajaj Hindusthan

Sh.Renuka Sugar

M.V.K. Agro

Why is Bannari Amman Sugars Ltd ?

Weak Long Term Fundamental Strength with a -1.10% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.43% signifying low profitability per unit of shareholders funds

With ROE of 6.7, it has a Expensive valuation with a 2.5 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 -0.99%, its profits have fallen by -6.7%

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

Below par performance in long term as well as near term

Along with generating -0.99% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bannari Amm.Sug.

-3.64%

-0.13

27.96%

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)

2.97%

EBIT Growth (5y)

-1.10%

EBIT to Interest (avg)

8.36

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.97

Tax Ratio

35.64%

Dividend Payout Ratio

14.98%

Pledged Shares

Institutional Holding

0.28%

ROCE (avg)

9.15%

ROE (avg)

7.43%

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

2.55

EV to EBIT

27.60

EV to EBITDA

20.15

EV to Capital Employed

2.62

EV to Sales

2.39

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

9.50%

ROE (Latest)

6.69%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

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

19What is working for the Company

DPS(Y)

Highest at Rs 12.50

DEBTORS TURNOVER RATIO(HY)

Highest at 37.91 times

NET SALES(Q)

Highest at Rs 571.65 cr

PBDIT(Q)

Highest at Rs 74.93 cr.

PBT LESS OI(Q)

Highest at Rs 59.01 cr.

PAT(Q)

Highest at Rs 42.70 cr.

EPS(Q)

Highest at Rs 34.05

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

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

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 59.01 cr has Grown at 59.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 37.08 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 42.70 cr has Grown at 50.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 28.37 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 571.65 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 571.65 cr has Grown at 26.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 451.91 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 74.93 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 59.01 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 42.70 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 34.05

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 37.91 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 12.50

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)