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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 507315 | NSE: SAKHTISUG

Sakthi Sugars Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 4:56 pm

Market Cap 368 Cr.
Current Price 31.0
High / Low46.8/26.8
Stock P/E
Book Value 12.5
Dividend Yield0.00 %
ROCE5.53 %
ROE99.6 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sakthi Sugars Ltd

Competitors of Sakthi Sugars Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 108 Cr. 16.629.4/15.1 20.00.00 %102 %% 10.0
Dhampure Speciality Sugars Ltd 76.8 Cr. 96.8116/66.152.3 35.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 823 Cr. 124171/11278.2 1462.03 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,588 Cr. 182242/14113.0 1001.10 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 565 Cr. 6.0111.5/5.6245.6 3.640.00 %6.86 %3.75 % 1.00
Industry Average2,120.79 Cr296.8929.74224.520.65%13.29%13.21%6.37

All Competitor Stocks of Sakthi Sugars Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1187362178302242186327370237155299394
Expenses1137970156269227184287331229172255328
Operating Profit5-5-7223315340398-174365
OPM %5%-7%-12%12%11%6%1%12%10%4%-11%15%17%
Other Income36108617527542151082113538
Interest51536064252828272626312627
Depreciation77724999999999
Profit before tax-50-61-6520174519218111-25-5614367
Tax %-1%0%0%2%0%-6%-1%-1%28%-36%-24%25%13%
Net Profit-50-61-652017351922081-16-4310858
EPS in Rs-4.17-5.11-5.501.6714.590.411.6418.516.78-1.32-3.599.054.87

Last Updated: October 17, 2024, 2:03 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 17, 2024, 2:03 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,1707078378219265295058036334321,0761,0691,084
Expenses1,087691723778812566560881624416977995984
Operating Profit831611343114-37-55-7810159974100
OPM %7%2%14%5%12%-7%-11%-10%2%4%9%7%9%
Other Income333237126-12100121122114462246177
Interest13818713181140150260202197234108109110
Depreciation66666474575352493946373737
Profit before tax-117-234-49-7543-252-267-208-104-150416174129
Tax %-26%-32%-30%-27%30%-30%-20%-1%12%0%-1%26%
Net Profit-87-159-35-5530-177-214-206-116-150418129107
EPS in Rs-23.75-16.57-3.61-5.722.55-14.90-18.01-17.33-9.78-12.6435.1610.909.01
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-82.76%77.99%-57.14%154.55%-690.00%-20.90%3.74%43.69%-29.31%378.67%-69.14%
Change in YoY Net Profit Growth (%)0.00%160.75%-135.13%211.69%-844.55%669.10%24.64%39.95%-73.00%407.98%-447.81%

Sakthi Sugars Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:16%
3 Years:19%
TTM:-18%
Compounded Profit Growth
10 Years:5%
5 Years:11%
3 Years:21%
TTM:-21%
Stock Price CAGR
10 Years:5%
5 Years:28%
3 Years:29%
1 Year:0%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-100%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital37969696119119119119119119119119119
Reserves451357296270317140-74-279-397-547-130-129
Borrowings1,2561,0811,1971,079920919900841918938852773848
Other Liabilities4445685866106416829461,1521,1721,302827657487
Total Liabilities2,1882,1032,1752,0551,9961,8591,8911,8321,8121,8121,6681,5481,483
Fixed Assets1,2481,1601,0771,0051,3541,2391,189994957824794768749
CWIP14914914915032320010343234
Investments1631631631641911813172017170165170
Other Assets628631786736419570689822835971670583530
Total Assets2,1882,1032,1752,0551,9961,8591,8911,8321,8121,8121,6681,5481,483

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +22180-94125165-4336483137107114
Cash from Investing Activity +-705361183862360912151
Cash from Financing Activity +-210-94104-169-189-45-62-58-37-32-238-165
Net Cash Flow-60-947-3359-2-3-4-513-11-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow82.0015.00112.0042.00-806.00-956.00-955.00-919.00-908.00-923.00-753.00-699.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days352457489474948532
Inventory Days4190737164951144165593139
Days Payable112188180196147220262169179685969
Cash Conversion Cycle-37-75-50-77-73-78-99-123-106-3-25-27
Working Capital Days-131-344-268-217-183-330-660-444-197-302-64-21
ROCE %1%-3%4%0%6%-7%4%-1%-3%-3%11%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters59.83%59.83%59.83%59.84%59.83%59.83%59.83%59.83%59.83%59.83%59.83%59.83%
FIIs0.00%0.00%0.01%0.04%0.56%0.01%0.02%1.16%0.00%0.05%0.00%0.38%
DIIs11.28%11.28%10.56%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.01%0.01%
Government0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%
Public28.12%28.12%28.82%39.31%38.79%39.33%39.32%38.17%39.34%39.30%39.37%39.00%
No. of Shareholders45,62048,22149,31149,78051,68551,30551,36055,31256,74866,44867,58466,988

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 18Mar 17Mar 16Mar 15Mar 14
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-14.903.46-4.94-3.6176.49
Diluted EPS (Rs.)-14.903.46-4.94-3.6176.49
Cash EPS (Rs.)-10.467.352.003.0243.93
Book Value[Excl.RevalReserv]/Share (Rs.)21.7423.121.031.1247.30
Book Value[Incl.RevalReserv]/Share (Rs.)21.7423.1238.1540.13119.34
Revenue From Operations / Share (Rs.)44.4977.9585.3386.94206.56
PBDIT / Share (Rs.)-2.2711.668.0714.9417.77
PBIT / Share (Rs.)-6.716.870.338.314.50
PBT / Share (Rs.)-21.223.63-7.82-5.13-23.73
Net Profit / Share (Rs.)-14.902.55-5.72-3.6130.65
NP After MI And SOA / Share (Rs.)-14.903.31-4.94-4.2730.17
PBDIT Margin (%)-5.0914.969.4517.188.60
PBIT Margin (%)-15.088.800.399.552.17
PBT Margin (%)-47.694.65-9.16-5.90-11.48
Net Profit Margin (%)-33.483.27-6.70-4.1514.84
NP After MI And SOA Margin (%)-33.484.24-5.78-4.9114.60
Return on Networth / Equity (%)-68.5414.30-480.82-382.6365.18
Return on Capital Employeed (%)-10.188.330.287.962.07
Return On Assets (%)-9.522.14-2.31-1.897.01
Long Term Debt / Equity (X)1.762.0474.1355.171.64
Total Debt / Equity (X)2.212.4582.2374.872.51
Asset Turnover Ratio (%)0.280.450.380.260.24
Current Ratio (X)0.410.290.420.330.37
Quick Ratio (X)0.310.160.300.250.17
Inventory Turnover Ratio (X)3.655.815.151.812.33
Interest Coverage Ratio (X)-0.170.980.981.110.62
Interest Coverage Ratio (Post Tax) (X)-0.030.490.290.730.40
Enterprise Value (Cr.)746.391046.001142.82875.851426.07
EV / Net Operating Revenue (X)1.411.131.391.050.71
EV / EBITDA (X)-27.707.5514.726.098.34
MarketCap / Net Operating Revenue (X)0.360.420.420.140.08
Price / BV (X)0.741.4335.5811.650.39
Price / Net Operating Revenue (X)0.360.420.420.140.08
EarningsYield-0.920.10-0.13-0.321.67

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sakthi Sugars Ltd as of November 18, 2024 is: 190.49

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, Sakthi Sugars Ltd is Undervalued by 514.48% compared to the current share price 31.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Sakthi Sugars Ltd as of November 18, 2024 is: 346.07

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Sakthi Sugars Ltd is Undervalued by 1,016.35% compared to the current share price 31.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 81.67%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -263.42, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -64.42, which is a positive sign.
  1. The stock has a low average ROCE of 1.25%, which may not be favorable.
  2. The company has higher borrowings (963.23) compared to reserves (33.23), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (476.69) and profit (-53.38).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sakthi Sugars Ltd:
    1. Net Profit Margin: -33.48%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -10.18% (Industry Average ROCE: 13.29%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -68.54% (Industry Average ROE: 13.21%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -0.03
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.31
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 29.74)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 2.21
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Sakthi Sugars Ltd. is a Public Limited Listed company incorporated on 12/05/1961 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15421TZ1961PLC000396 and registration number is 000396. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 788.02 Cr. and Equity Capital is Rs. 118.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarSugar Unit & Co-Generation Plant: Bhavani Taluk , Erode District Tamil Nadu 638315shares@sakthisugars.com
http://www.sakthisugars.com
Management
NamePosition Held
Dr. M ManickamChairman & Managing Director
Mr. M BalasubramaniamManaging Director
Mr. M SrinivaasanJoint Managing Director
Mr. C RangamaniDirector
Mr. S S MuthuvelappanDirector
Mr. P K ChandranDirector
Mr. N K VijayanDirector
Mr. K V RamachandranDirector
Mr. S ChandrasekharDirector
Mr. S BalasubramanianDirector
Mrs. Priya BhansaliDirector
Mr. V K SwaminathaDirector

FAQ

What is the latest intrinsic value of Sakthi Sugars Ltd?

The latest intrinsic value of Sakthi Sugars Ltd as on 18 November 2024 is ₹190.49, which is 514.48% higher than the current market price of ₹31.00.

What is the Market Cap of Sakthi Sugars Ltd?

The Market Cap of Sakthi Sugars Ltd is 368 Cr..

What is the current Stock Price of Sakthi Sugars Ltd as on 18 November 2024?

The current stock price of Sakthi Sugars Ltd as on 18 November 2024 is ₹31.0.

What is the High / Low of Sakthi Sugars Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sakthi Sugars Ltd stocks is 46.8/26.8.

What is the Stock P/E of Sakthi Sugars Ltd?

The Stock P/E of Sakthi Sugars Ltd is .

What is the Book Value of Sakthi Sugars Ltd?

The Book Value of Sakthi Sugars Ltd is 12.5.

What is the Dividend Yield of Sakthi Sugars Ltd?

The Dividend Yield of Sakthi Sugars Ltd is 0.00 %.

What is the ROCE of Sakthi Sugars Ltd?

The ROCE of Sakthi Sugars Ltd is 5.53 %.

What is the ROE of Sakthi Sugars Ltd?

The ROE of Sakthi Sugars Ltd is 99.6 %.

What is the Face Value of Sakthi Sugars Ltd?

The Face Value of Sakthi Sugars Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sakthi Sugars Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE