Sakthi Sugars Ltd (SAKHTISUG) 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

Ponni Sug.Erode

Dhampur.Spl.Sug.

Indian Sucrose

Sakthi Sugars

Rajshree Sugars

SBEC Sugar

KM Sugar Mills

Kothari Sugars

Rana Sugars

KCP Sugar &Inds.

Vishwaraj Sugar

Why is Sakthi Sugars Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 7.25% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 8.76 times
The company has been able to generate a Return on Equity (avg) of 2.16% signifying low profitability per unit of shareholders funds

81.77% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.19% 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 Sakthi Sugars for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakthi Sugars

-33.54%

-0.95

35.25%

Sensex

-10.34%

-0.79

13.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.25%

EBIT Growth (5y)

30.03%

EBIT to Interest (avg)

0.36

Debt to EBITDA (avg)

22.48

Net Debt to Equity (avg)

4.71

Sales to Capital Employed (avg)

1.18

Tax Ratio

26.16%

Dividend Payout Ratio

Pledged Shares

81.77%

Institutional Holding

0.81%

ROCE (avg)

2.44%

ROE (avg)

2.16%

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

1.18

EV to EBIT

20.66

EV to EBITDA

11.75

EV to Capital Employed

1.03

EV to Sales

1.15

PEG Ratio

Dividend Yield

ROCE (Latest)

3.46%

ROE (Latest)

16.03%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

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

23What is working for the Company

PAT(Latest six months)

Higher at Rs 52.30 cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.99 times

NET SALES(Q)

At Rs 301.92 cr has Grown at 31.4% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 69.74 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 23.10%

PBT LESS OI(Q)

Highest at Rs 36.99 cr.

EPS(Q)

Highest at Rs 7.28

-1What is not working for the Company

NON-OPERATING INCOME(Q)

is 68.47 % of Profit Before Tax (PBT

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Here's what is working for Sakthi Sugars

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 36.99 cr has Grown at 353.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -14.60 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 86.50 cr has Grown at 2098.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.94 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.99 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

At Rs 301.92 cr has Grown at 31.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 229.72 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 69.74 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 23.10%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 36.99 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 86.50 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 7.28

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Sakthi Sugars

Non Operating Income - Quarterly

is 68.47 % 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 80.32 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income