Ugar Sugar Works Ltd. (UGARSUGAR) 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

Dwarikesh Sugar

Mawana Sugars

Ugar Sugar Works

Magadh Sugar

Dhampur Bio

DCM Shriram Inds

KCP Sugar &Inds.

SBEC Sugar

Uttam Sug.Mills

Davangere Sugar

Zuari Industries

Why is Ugar Sugar Works Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 10.63% and Operating profit at 10.55% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 2.85 times

Flat results in Jun 26

PBT LESS OI(Q) At Rs -0.96 cr has Fallen at -141.6% (vs previous 4Q average)
PAT(Q) At Rs 1.49 cr has Fallen at -56.2% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 36.42 cr has Grown at 24.51%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

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 Ugar Sugar Works for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ugar Sugar Works

21.49%

0.52

41.35%

Sensex

-9.5%

-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)

10.63%

EBIT Growth (5y)

10.55%

EBIT to Interest (avg)

1.77

Debt to EBITDA (avg)

6.54

Net Debt to Equity (avg)

2.79

Sales to Capital Employed (avg)

2.43

Tax Ratio

9.53%

Dividend Payout Ratio

8.26%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

14.45%

ROE (avg)

19.48%

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

2.73

EV to EBIT

14.47

EV to EBITDA

10.32

EV to Capital Employed

1.46

EV to Sales

0.80

PEG Ratio

0.09

Dividend Yield

0.18%

ROCE (Latest)

7.94%

ROE (Latest)

12.34%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

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

13What is working for the Company

OPERATING CF(Y)

Highest at Rs 43.73 Cr

PAT(Latest six months)

At Rs 47.25 cr has Grown at 26.51%

NET SALES(Q)

At Rs 477.88 cr has Grown at 28.8% (vs previous 4Q average

-12What is not working for the Company

PBT LESS OI(Q)

At Rs -0.96 cr has Fallen at -141.6% (vs previous 4Q average

PAT(Q)

At Rs 1.49 cr has Fallen at -56.2% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 36.42 cr has Grown at 24.51%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 15.75 cr

DEBT-EQUITY RATIO(HY)

Highest at 2.86 times

NON-OPERATING INCOME(Q)

is 192.31 % of Profit Before Tax (PBT

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Here's what is working for Ugar Sugar Works

Operating Cash Flow - Annually

Highest at Rs 43.73 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 477.88 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 477.88 cr has Grown at 28.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 371.07 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Ugar Sugar Works

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -0.96 cr has Fallen at -141.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.31 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.49 cr has Fallen at -56.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.41 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 36.42 cr has Grown at 24.51%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 192.31 % 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

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 15.75 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 2.86 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