ScoreWhy is Davangere Sugar Company Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.96%
- Poor long term growth as Net Sales has grown by an annual rate of 11.56% and Operating profit at 16.89% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.14 times
2
Negative results in Jun 26
- NET SALES(Q) At Rs 34.72 cr has Fallen at -41.8% (vs previous 4Q average)
- PAT(Q) At Rs 0.94 cr has Fallen at -55.8% (vs previous 4Q average)
- ROCE(HY) Lowest at 5.07%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -48.88% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow 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 Davangere Sugar for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Davangere Sugar
-48.49%
-0.92
52.92%
Sensex
-5.66%
-0.41
13.39%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.56%
EBIT Growth (5y)
16.89%
EBIT to Interest (avg)
1.43
Debt to EBITDA (avg)
5.27
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
0.36
Tax Ratio
22.77%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.88%
ROCE (avg)
5.83%
ROE (avg)
2.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
23
Price to Book Value
0.69
EV to EBIT
16.57
EV to EBITDA
12.22
EV to Capital Employed
0.79
EV to Sales
2.37
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.80%
ROE (Latest)
1.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET SALES(9M)
At Rs 201.23 cr has Grown at 30.53%
-18What is not working for the Company
NET SALES(Q)
At Rs 34.72 cr has Fallen at -41.8% (vs previous 4Q average
PAT(Q)
At Rs 0.94 cr has Fallen at -55.8% (vs previous 4Q average
ROCE(HY)
Lowest at 5.07%
INTEREST(Q)
At Rs 7.19 cr has Grown at 58.72%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 1.55 times
EPS(Q)
Lowest at Rs 0.01
Loading Valuation Snapshot...
Here's what is not working for Davangere Sugar
Net Sales - Quarterly
At Rs 34.72 cr has Fallen at -41.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 59.69 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 0.94 cr has Fallen at -55.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2.13 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 7.19 cr has Grown at 58.72%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 1.55 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.01
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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