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

Ponni Sug.Erode

Mawana Sugars

Dhampur Bio

Sakthi Sugars

KM Sugar Mills

Ugar Sugar Works

DCM Shriram Inds

Zuari Industries

Magadh Sugar

Davangere Sugar

KCP Sugar &Inds.

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 9.21% and Operating profit at 4.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 2.85 times

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -2.21% over the previous quarter and currently hold 44.54% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.74% 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 Ugar Sugar Works for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ugar Sugar Works

-16.74%

-0.50

33.46%

Sensex

-8.21%

-0.63

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.21%

EBIT Growth (5y)

4.90%

EBIT to Interest (avg)

1.66

Debt to EBITDA (avg)

6.54

Net Debt to Equity (avg)

2.79

Sales to Capital Employed (avg)

2.43

Tax Ratio

18.64%

Dividend Payout Ratio

13.30%

Pledged Shares

Institutional Holding

0.19%

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

1.94

EV to EBIT

15.73

EV to EBITDA

10.68

EV to Capital Employed

1.25

EV to Sales

0.75

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

7.94%

ROE (Latest)

5.83%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

16What is working for the Company

PAT(Q)

At Rs 45.76 cr has Grown at 866.4% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 70.76 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 18.17%

PBT LESS OI(Q)

Highest at Rs 42.64 cr.

-8What is not working for the Company

INTEREST(Q)

At Rs 17.95 cr has Grown at 55.68%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 15.75 cr

DEBT-EQUITY RATIO(HY)

Highest at 2.86 times

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Here's what is working for Ugar Sugar Works

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 42.64 cr has Grown at 2536.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1.62 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 45.76 cr has Grown at 866.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.74 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 70.76 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 18.17%

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 42.64 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Ugar Sugar Works

Interest - Quarterly

At Rs 17.95 cr has Grown at 55.68%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 17.95 cr

in the last five quarters and Increased by 55.68 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

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