KM Sugar Mills Ltd (KMSUGAR) 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

Mawana Sugars

KM Sugar Mills

Ponni Sug.Erode

Oswal Overseas

KCP Sugar &Inds.

DCM Shriram Inds

Ugar Sugar Works

Rana Sugars

Sakthi Sugars

SBEC Sugar

Kothari Sugars

Why is KM Sugar Mills Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 1.68% and Operating profit at 8.68% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 18.60%
OPERATING PROFIT TO INTEREST(Q) Highest at 21.56 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 13.10 cr

With ROCE of 16.9, it has a Very Attractive valuation with a 0.7 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 -16.88%, its profits have risen by 71.8% ; the PEG ratio of the company is 0.1

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.88% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KM Sugar Mills should be less than 10%
Overall Portfolio exposure to Sugar should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is KM Sugar Mills for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

KM Sugar Mills

-16.85%

-0.58

28.98%

Sensex

-5.02%

-0.39

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.68%

EBIT Growth (5y)

8.68%

EBIT to Interest (avg)

3.65

Debt to EBITDA (avg)

2.69

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.43

Tax Ratio

26.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.67%

ROCE (avg)

12.72%

ROE (avg)

11.15%

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

0.63

EV to EBIT

4.08

EV to EBITDA

3.09

EV to Capital Employed

0.67

EV to Sales

0.40

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

16.93%

ROE (Latest)

13.05%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

ROCE(HY)

Highest at 18.60%

OPERATING PROFIT TO INTEREST(Q)

Highest at 21.56 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 13.10 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.19 times

PAT(Q)

Highest at Rs 20.59 cr.

EPS(Q)

Highest at Rs 2.24

-1What is not working for the Company

NON-OPERATING INCOME(Q)

is 41.53 % of Profit Before Tax (PBT

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Here's what is working for KM Sugar Mills

Operating Profit to Interest - Quarterly

Highest at 21.56 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 20.59 cr has Grown at 62.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 20.59 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 2.24

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 13.10 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.19 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for KM Sugar Mills

Non Operating Income - Quarterly

is 41.53 % 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 11.54 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income