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 6.84% and Operating profit at 15.12% 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 3 consecutive quarters
- ROCE(HY) Lowest at 6.21%
- INTEREST(Q) At Rs 9.44 cr has Grown at 35.83%
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.47 times
3
With ROCE of 6, it has a Expensive valuation with a 1.2 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 -15.41%, its profits have risen by 2%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -15.41% 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
-15.41%
-0.30
52.01%
Sensex
9.01%
0.78
11.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.84%
EBIT Growth (5y)
15.12%
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
14.29%
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
52
Industry P/E
21
Price to Book Value
1.31
EV to EBIT
20.29
EV to EBITDA
15.45
EV to Capital Employed
1.22
EV to Sales
4.17
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.02%
ROE (Latest)
2.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
PAT(Latest six months)
At Rs 3.93 cr has Grown at 76.23%
DEBT-EQUITY RATIO(HY)
Lowest at 0.40 times
-10What is not working for the Company
ROCE(HY)
Lowest at 6.21%
INTEREST(Q)
At Rs 9.44 cr has Grown at 35.83%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.47 times
PAT(Q)
At Rs 2.63 cr has Fallen at -6.9% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Davangere Sugar
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
Interest - Quarterly
At Rs 9.44 cr has Grown at 35.83%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Quarterly
At Rs 2.63 cr has Fallen at -6.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2.83 CrMOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
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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