Rana Sugars Ltd (RANASUG) 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

Dhampur.Spl.Sug.

Ponni Sug.Erode

Sakthi Sugars

Indian Sucrose

Kesar Enterprise

KCP Sugar &Inds.

SBEC Sugar

KM Sugar Mills

Rana Sugars

Kothari Sugars

Vishwaraj Sugar

Why is Rana Sugars Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.89 times
The company has been able to generate a Return on Equity (avg) of 9.54% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

PAT(Q) At Rs -20.65 cr has Fallen at -716.2%
INTEREST(Latest six months) At Rs 14.68 cr has Grown at 29.57%
NET SALES(Q) At Rs 464.45 cr has Fallen at -12.52%

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -15.55 cr
Over the past year, while the stock has generated a return of -3.07%, its profits have fallen by -142.1%
The stock is trading risky as compared to its average historical valuations

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.07% 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 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 Rana Sugars for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Rana Sugars

-3.07%

-0.08

36.67%

Sensex

-9.4%

-0.70

13.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.91%

EBIT Growth (5y)

-163.03%

EBIT to Interest (avg)

1.72

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

2.09

Tax Ratio

65.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.66%

ROCE (avg)

12.67%

ROE (avg)

9.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.36

EV to EBIT

-31.69

EV to EBITDA

21.48

EV to Capital Employed

0.56

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

0.32%

ROE (Latest)

-2.58%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

PAT(Q)

At Rs -20.65 cr has Fallen at -716.2%

INTEREST(Latest six months)

At Rs 14.68 cr has Grown at 29.57%

NET SALES(Q)

At Rs 464.45 cr has Fallen at -12.52%

PBDIT(Q)

Lowest at Rs -10.85 cr.

PBT LESS OI(Q)

Lowest at Rs -26.79 cr.

EPS(Q)

Lowest at Rs -1.34

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Here's what is not working for Rana Sugars

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -26.79 cr has Fallen at -121.77%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -20.65 cr has Fallen at -716.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 464.45 cr has Fallen at -12.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Latest six months

At Rs 14.68 cr has Grown at 29.57%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -10.85 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -26.79 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.34

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)