SBEC Sugar Ltd () 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

Ugar Sugar Works

Mawana Sugars

DCM Shriram Inds

Sakthi Sugars

SBEC Sugar

KM Sugar Mills

Magadh Sugar

Davangere Sugar

Kothari Sugars

KCP Sugar &Inds.

Why is SBEC Sugar Ltd ?

Weak Long Term Fundamental Strength with a -214.01% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of -57.20 times
The company has been able to generate a Return on Equity (avg) of 2.23% signifying low profitability per unit of shareholders funds

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -4.78 cr
Over the past year, while the stock has generated a return of 23.39%, its profits have risen by 200.3% ; the PEG ratio of the company is 0.1
The stock is trading risky as compared to its average historical valuations

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 SBEC Sugar for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SBEC Sugar

23.39%

0.38

61.22%

Sensex

-9.62%

-0.74

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.10%

EBIT Growth (5y)

-214.01%

EBIT to Interest (avg)

0.25

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

1.61

Sales to Capital Employed (avg)

4.13

Tax Ratio

3.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.01%

ROCE (avg)

2.47%

ROE (avg)

2.23%

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

1.89

EV to EBIT

-25.08

EV to EBITDA

-122.37

EV to Capital Employed

1.34

EV to Sales

1.07

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

-5.34%

ROE (Latest)

11.15%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

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

20What is working for the Company

PBT LESS OI(Q)

At Rs 88.97 cr has Grown at 1427.9% (vs previous 4Q average

PAT(Q)

Highest at Rs 90.59 cr.

EPS(Q)

Highest at Rs 19.00

-6What is not working for the Company

INTEREST(Latest six months)

At Rs 25.20 cr has Grown at 29.30%

DEBT-EQUITY RATIO(HY)

Highest at 1.63 times

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Here's what is working for SBEC Sugar

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 88.97 cr has Grown at 1427.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -6.70 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 90.59 cr has Grown at 1516.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -6.40 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 88.97 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 90.59 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 19.00

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 SBEC Sugar

Interest - Latest six months

At Rs 25.20 cr has Grown at 29.30%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.63 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 2.36 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income