ScoreWhy is Davangere Sugar Company Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.85%
- Poor long term growth as Net Sales has grown by an annual rate of 7.80% and Operating profit at 2.86% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.65 times
2
The company has declared Negative results for the last 4 consecutive quarters
- PAT(Latest six months) At Rs 5.25 cr has Grown at -34.86%
- INTEREST(Latest six months) At Rs 15.77 cr has Grown at 39.93%
- ROCE(HY) Lowest at 6.21%
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 11.51% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.27% returns
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
-18.27%
-0.36
51.27%
Sensex
8.53%
0.73
11.73%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.80%
EBIT Growth (5y)
2.86%
EBIT to Interest (avg)
1.37
Debt to EBITDA (avg)
5.29
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
0.37
Tax Ratio
28.06%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
6.99%
ROCE (avg)
5.94%
ROE (avg)
3.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
67
Industry P/E
20
Price to Book Value
1.14
EV to EBIT
20.74
EV to EBITDA
15.24
EV to Capital Employed
1.10
EV to Sales
3.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.02%
ROE (Latest)
1.69%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
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 
Financial Trend5What is working for the Company
NET SALES(Q)
At Rs 82.69 cr has Grown at 63.5% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Lowest at 0.40 times
PBT LESS OI(Q)
At Rs 3.90 cr has Grown at 22.4% (vs previous 4Q average
-12What is not working for the Company
PAT(Latest six months)
At Rs 5.25 cr has Grown at -34.86%
INTEREST(Latest six months)
At Rs 15.77 cr has Grown at 39.93%
ROCE(HY)
Lowest at 6.21%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.47 times
OPERATING PROFIT TO NET SALES (Q)
Lowest at 16.21%
Loading Valuation Snapshot...
Here's what is working for Davangere Sugar
Net Sales - Quarterly
At Rs 82.69 cr has Grown at 63.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 50.59 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 82.69 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.90 cr has Grown at 22.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3.19 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.40 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Davangere Sugar
Profit After Tax (PAT) - Latest six months
At Rs 5.25 cr has Grown at -34.86%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 15.77 cr has Grown at 39.93%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit Margin - Quarterly
Lowest at 16.21%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio- Half Yearly
Lowest at 5.47 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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