Davangere Sugar Company Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: June 2, 2025, 11:07 pm

Market Cap	341 Cr.
Current Price	3.64
High / Low	10.8/3.45
Stock P/E	31.1
Book Value	3.64
Dividend Yield	0.00 %
ROCE	6.80 %
ROE	3.22 %
Face Value	1.00
PEG Ratio	0.97

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Davangere Sugar Company Ltd

Competitors of Davangere Sugar Company Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Gayatri Sugars Ltd	69.2 Cr.	9.32	26.5/7.02	64.7	11.4	0.00 %	36.6 %	%	10.0
Dhampure Speciality Sugars Ltd	76.5 Cr.	91.8	142/78.0	28.3	41.0	0.00 %	11.6 %	8.88 %	10.0
Dhampur Bio Organics Ltd	504 Cr.	76.0	164/57.3	31.6	152	3.29 %	3.99 %	1.58 %	10.0
DCM Shriram Industries Ltd	1,425 Cr.	164	242/142	14.0	103	1.22 %	13.8 %	11.8 %	2.00
Davangere Sugar Company Ltd	341 Cr.	3.64	10.8/3.45	31.1	3.64	0.00 %	6.80 %	3.22 %	1.00
Industry Average	2,119.00 Cr	309.44		31.73	229.98	0.69%	8.73%	7.97%	6.37

All Competitor Stocks of Davangere Sugar Company Ltd

Quarterly Result

Metric	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	47.40	46.19	50.93	94.71	88.13	47.73	26.92	78.31	63.57	45.57	39.33	73.18	56.91
Expenses	34.28	37.09	39.68	77.79	69.67	40.47	15.44	62.39	52.90	36.10	24.73	54.96	47.23
Operating Profit	13.12	9.10	11.25	16.92	18.46	7.26	11.48	15.92	10.67	9.47	14.60	18.22	9.68
OPM %	27.68%	19.70%	22.09%	17.87%	20.95%	15.21%	42.64%	20.33%	16.78%	20.78%	37.12%	24.90%	17.01%
Other Income	0.14	1.20	0.51	0.25	-1.32	3.72	0.32	0.53	1.87	0.35	0.45	0.41	0.57
Interest	7.10	6.92	7.48	9.33	3.40	6.68	7.37	6.64	4.66	5.47	10.24	8.16	4.32
Depreciation	2.22	2.22	2.22	4.86	2.27	2.89	2.89	2.89	3.28	2.98	3.03	3.00	3.68
Profit before tax	3.94	1.16	2.06	2.98	11.47	1.41	1.54	6.92	4.60	1.37	1.78	7.47	2.25
Tax %	24.87%	29.31%	26.70%	22.82%	25.28%	21.28%	37.01%	18.79%	0.87%	30.66%	28.09%	9.37%	13.33%
Net Profit	2.95	0.82	1.52	2.30	8.57	1.10	0.97	5.61	4.55	0.94	1.29	6.77	1.94
EPS in Rs	0.03	0.01	0.02	0.02	0.09	0.01	0.01	0.06	0.05	0.01	0.01	0.07	0.02

Last Updated: May 31, 2025, 6:21 am

Below is a detailed analysis of the quarterly data for Davangere Sugar Company Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 56.91 Cr.. The value appears to be declining and may need further review. It has decreased from 73.18 Cr. (Dec 2024) to 56.91 Cr., marking a decrease of 16.27 Cr..
For Expenses, as of Mar 2025, the value is 47.23 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 54.96 Cr. (Dec 2024) to 47.23 Cr., marking a decrease of 7.73 Cr..
For Operating Profit, as of Mar 2025, the value is 9.68 Cr.. The value appears to be declining and may need further review. It has decreased from 18.22 Cr. (Dec 2024) to 9.68 Cr., marking a decrease of 8.54 Cr..
For OPM %, as of Mar 2025, the value is 17.01%. The value appears to be declining and may need further review. It has decreased from 24.90% (Dec 2024) to 17.01%, marking a decrease of 7.89%.
For Other Income, as of Mar 2025, the value is 0.57 Cr.. The value appears strong and on an upward trend. It has increased from 0.41 Cr. (Dec 2024) to 0.57 Cr., marking an increase of 0.16 Cr..
For Interest, as of Mar 2025, the value is 4.32 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 8.16 Cr. (Dec 2024) to 4.32 Cr., marking a decrease of 3.84 Cr..
For Depreciation, as of Mar 2025, the value is 3.68 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3.00 Cr. (Dec 2024) to 3.68 Cr., marking an increase of 0.68 Cr..
For Profit before tax, as of Mar 2025, the value is 2.25 Cr.. The value appears to be declining and may need further review. It has decreased from 7.47 Cr. (Dec 2024) to 2.25 Cr., marking a decrease of 5.22 Cr..
For Tax %, as of Mar 2025, the value is 13.33%. The value appears to be increasing, which may not be favorable. It has increased from 9.37% (Dec 2024) to 13.33%, marking an increase of 3.96%.
For Net Profit, as of Mar 2025, the value is 1.94 Cr.. The value appears to be declining and may need further review. It has decreased from 6.77 Cr. (Dec 2024) to 1.94 Cr., marking a decrease of 4.83 Cr..
For EPS in Rs, as of Mar 2025, the value is 0.02. The value appears to be declining and may need further review. It has decreased from 0.07 (Dec 2024) to 0.02, marking a decrease of 0.05.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 15, 2025, 3:50 am

Metric	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales	173	64	114	203	145	124	280	217	215
Expenses	150	66	82	170	135	90	224	171	163
Operating Profit	23	-2	31	33	10	34	56	45	52
OPM %	13%	-4%	27%	16%	7%	28%	20%	21%	24%
Other Income	0	18	0	0	3	0	1	6	2
Interest	14	14	18	22	1	19	27	25	28
Depreciation	9	9	9	9	9	9	12	12	13
Profit before tax	1	-7	5	3	3	7	18	14	13
Tax %	309%	25%	31%	21%	22%	15%	25%	15%	15%
Net Profit	-2	-9	3	2	2	6	13	12	11
EPS in Rs	-0.02	-0.11	0.03	0.02	0.03	0.06	0.14	0.13	0.12
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
YoY Net Profit Growth (%)	-350.00%	133.33%	-33.33%	0.00%	200.00%	116.67%	-7.69%	-8.33%
Change in YoY Net Profit Growth (%)	0.00%	483.33%	-166.67%	33.33%	200.00%	-83.33%	-124.36%	-0.64%

Davangere Sugar Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2017-2018 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	1%
3 Years:	20%
TTM:	-1%

Compounded Profit Growth
10 Years:	%
5 Years:	37%
3 Years:	24%
TTM:	-11%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	32%
1 Year:	-64%

Return on Equity
10 Years:	%
5 Years:	3%
3 Years:	4%
Last Year:	3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:41 pm

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	45	45	56	56	56	56	94	94	94
Reserves	53	44	36	187	190	196	218	246	248
Borrowings	105	122	149	116	132	259	245	264	282
Other Liabilities	63	80	87	95	61	63	40	78	97
Total Liabilities	265	291	328	454	439	574	597	682	721
Fixed Assets	145	136	128	280	271	346	350	359	357
CWIP	12	5	5	0	0	0	0	0	0
Investments	0	0	1	2	2	4	4	5	5
Other Assets	109	149	194	173	165	224	243	318	360
Total Assets	265	291	328	454	439	574	597	682	721

Below is a detailed analysis of the balance sheet data for Davangere Sugar Company Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

For Equity Capital, as of Sep 2024, the value is 94.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 94.00 Cr..
For Reserves, as of Sep 2024, the value is 248.00 Cr.. The value appears strong and on an upward trend. It has increased from 246.00 Cr. (Mar 2024) to 248.00 Cr., marking an increase of 2.00 Cr..
For Borrowings, as of Sep 2024, the value is 282.00 Cr.. The value appears to be increasing, which may not be favorable. However, Borrowings exceed Reserves, which may signal higher financial risk. It has increased from 264.00 Cr. (Mar 2024) to 282.00 Cr., marking an increase of 18.00 Cr..
For Other Liabilities, as of Sep 2024, the value is 97.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 78.00 Cr. (Mar 2024) to 97.00 Cr., marking an increase of 19.00 Cr..
For Total Liabilities, as of Sep 2024, the value is 721.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 682.00 Cr. (Mar 2024) to 721.00 Cr., marking an increase of 39.00 Cr..
For Fixed Assets, as of Sep 2024, the value is 357.00 Cr.. The value appears to be declining and may need further review. It has decreased from 359.00 Cr. (Mar 2024) to 357.00 Cr., marking a decrease of 2.00 Cr..
For CWIP, as of Sep 2024, the value is 0.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 0.00 Cr..
For Investments, as of Sep 2024, the value is 5.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 5.00 Cr..
For Other Assets, as of Sep 2024, the value is 360.00 Cr.. The value appears strong and on an upward trend. It has increased from 318.00 Cr. (Mar 2024) to 360.00 Cr., marking an increase of 42.00 Cr..
For Total Assets, as of Sep 2024, the value is 721.00 Cr.. The value appears strong and on an upward trend. It has increased from 682.00 Cr. (Mar 2024) to 721.00 Cr., marking an increase of 39.00 Cr..

However, the Borrowings (282.00 Cr.) are higher than the Reserves (₹248.00 Cr.), which may signal higher financial risk.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operating Activity +	68	6	-30	59	6	-68	81	2	-5
Cash from Investing Activity +	-9	6	-2	-2	-1	-85	-20	-23	-3
Cash from Financing Activity +	-61	-9	27	-52	6	144	-65	19	8
Net Cash Flow	-2	2	-5	6	10	-9	-5	-1	-0

Free Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Free Cash Flow	-82.00	-124.00	-118.00	-83.00	-122.00	-225.00	-189.00	-219.00	52.00

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

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	43	60	63	43	80	105	28	31
Inventory Days	456	359	632	116	157	656	174	320
Days Payable	25	11	34	7	0	23	29	57
Cash Conversion Cycle	474	407	662	151	236	738	172	293
Working Capital Days	99	715	545	225	351	595	276	448
ROCE %		3%	10%	8%	1%	6%	8%	7%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	74.07%	74.07%	74.07%	74.46%	74.46%	74.46%	74.46%	74.46%	74.36%	70.70%	60.89%	54.26%
FIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.04%	0.02%	0.00%
Public	25.93%	25.93%	25.93%	25.55%	25.56%	25.55%	25.54%	25.54%	25.65%	29.26%	39.10%	45.74%
No. of Shareholders	10,221	10,221	9,169	9,434	9,613	9,732	9,901	10,326	10,407	12,897	48,959	1,46,806

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund.

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	1.30	1.48	1.02	0.45	0.37
Diluted EPS (Rs.)	1.30	1.48	1.02	0.45	0.37
Cash EPS (Rs.)	2.57	2.63	2.61	2.04	1.99
Book Value[Excl.RevalReserv]/Share (Rs.)	36.14	33.16	45.12	17.21	16.92
Book Value[Incl.RevalReserv]/Share (Rs.)	36.14	33.16	45.12	44.05	16.92
Revenue From Operations / Share (Rs.)	23.02	29.75	22.31	26.48	36.43
PBDIT / Share (Rs.)	5.35	5.99	6.22	5.14	5.99
PBIT / Share (Rs.)	4.08	4.76	4.63	3.54	4.37
PBT / Share (Rs.)	1.53	1.88	1.20	0.57	0.46
Net Profit / Share (Rs.)	1.30	1.40	1.02	0.44	0.37
PBDIT Margin (%)	23.23	20.14	27.88	19.40	16.44
PBIT Margin (%)	17.70	16.00	20.73	13.38	12.00
PBT Margin (%)	6.67	6.31	5.36	2.18	1.28
Net Profit Margin (%)	5.65	4.72	4.57	1.69	1.02
Return on Networth / Equity (%)	3.60	4.23	2.26	2.60	2.19
Return on Capital Employeed (%)	8.38	10.58	5.89	5.59	13.35
Return On Assets (%)	1.79	2.21	0.95	0.56	0.67
Long Term Debt / Equity (X)	0.20	0.30	0.44	0.52	0.03
Total Debt / Equity (X)	0.77	0.78	1.03	1.27	1.17
Asset Turnover Ratio (%)	0.33	0.47	0.24	0.39	0.64
Current Ratio (X)	1.33	1.38	1.53	1.87	1.26
Quick Ratio (X)	0.78	0.84	0.78	1.38	0.87
Inventory Turnover Ratio (X)	1.18	1.50	1.68	2.06	1.28
Interest Coverage Ratio (X)	2.11	2.08	1.81	1.73	1.53
Interest Coverage Ratio (Post Tax) (X)	1.51	1.49	1.30	1.15	1.10
Enterprise Value (Cr.)	970.55	783.90	341.55	186.93	0.00
EV / Net Operating Revenue (X)	4.48	2.80	2.75	1.27	0.00
EV / EBITDA (X)	19.30	13.90	9.86	6.53	0.00
MarketCap / Net Operating Revenue (X)	3.28	1.94	0.72	0.55	0.00
Price / BV (X)	2.09	1.74	0.35	0.85	0.00
Price / Net Operating Revenue (X)	3.28	1.94	0.72	0.55	0.00
EarningsYield	0.01	0.02	0.06	0.03	0.00

After reviewing the key financial ratios for Davangere Sugar Company Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 10.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 10.00.
For Basic EPS (Rs.), as of Mar 24, the value is 1.30. This value is below the healthy minimum of 5. It has decreased from 1.48 (Mar 23) to 1.30, marking a decrease of 0.18.
For Diluted EPS (Rs.), as of Mar 24, the value is 1.30. This value is below the healthy minimum of 5. It has decreased from 1.48 (Mar 23) to 1.30, marking a decrease of 0.18.
For Cash EPS (Rs.), as of Mar 24, the value is 2.57. This value is below the healthy minimum of 3. It has decreased from 2.63 (Mar 23) to 2.57, marking a decrease of 0.06.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 36.14. It has increased from 33.16 (Mar 23) to 36.14, marking an increase of 2.98.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 36.14. It has increased from 33.16 (Mar 23) to 36.14, marking an increase of 2.98.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 23.02. It has decreased from 29.75 (Mar 23) to 23.02, marking a decrease of 6.73.
For PBDIT / Share (Rs.), as of Mar 24, the value is 5.35. This value is within the healthy range. It has decreased from 5.99 (Mar 23) to 5.35, marking a decrease of 0.64.
For PBIT / Share (Rs.), as of Mar 24, the value is 4.08. This value is within the healthy range. It has decreased from 4.76 (Mar 23) to 4.08, marking a decrease of 0.68.
For PBT / Share (Rs.), as of Mar 24, the value is 1.53. This value is within the healthy range. It has decreased from 1.88 (Mar 23) to 1.53, marking a decrease of 0.35.
For Net Profit / Share (Rs.), as of Mar 24, the value is 1.30. This value is below the healthy minimum of 2. It has decreased from 1.40 (Mar 23) to 1.30, marking a decrease of 0.10.
For PBDIT Margin (%), as of Mar 24, the value is 23.23. This value is within the healthy range. It has increased from 20.14 (Mar 23) to 23.23, marking an increase of 3.09.
For PBIT Margin (%), as of Mar 24, the value is 17.70. This value is within the healthy range. It has increased from 16.00 (Mar 23) to 17.70, marking an increase of 1.70.
For PBT Margin (%), as of Mar 24, the value is 6.67. This value is below the healthy minimum of 10. It has increased from 6.31 (Mar 23) to 6.67, marking an increase of 0.36.
For Net Profit Margin (%), as of Mar 24, the value is 5.65. This value is within the healthy range. It has increased from 4.72 (Mar 23) to 5.65, marking an increase of 0.93.
For Return on Networth / Equity (%), as of Mar 24, the value is 3.60. This value is below the healthy minimum of 15. It has decreased from 4.23 (Mar 23) to 3.60, marking a decrease of 0.63.
For Return on Capital Employeed (%), as of Mar 24, the value is 8.38. This value is below the healthy minimum of 10. It has decreased from 10.58 (Mar 23) to 8.38, marking a decrease of 2.20.
For Return On Assets (%), as of Mar 24, the value is 1.79. This value is below the healthy minimum of 5. It has decreased from 2.21 (Mar 23) to 1.79, marking a decrease of 0.42.
For Long Term Debt / Equity (X), as of Mar 24, the value is 0.20. This value is within the healthy range. It has decreased from 0.30 (Mar 23) to 0.20, marking a decrease of 0.10.
For Total Debt / Equity (X), as of Mar 24, the value is 0.77. This value is within the healthy range. It has decreased from 0.78 (Mar 23) to 0.77, marking a decrease of 0.01.
For Asset Turnover Ratio (%), as of Mar 24, the value is 0.33. It has decreased from 0.47 (Mar 23) to 0.33, marking a decrease of 0.14.
For Current Ratio (X), as of Mar 24, the value is 1.33. This value is below the healthy minimum of 1.5. It has decreased from 1.38 (Mar 23) to 1.33, marking a decrease of 0.05.
For Quick Ratio (X), as of Mar 24, the value is 0.78. This value is below the healthy minimum of 1. It has decreased from 0.84 (Mar 23) to 0.78, marking a decrease of 0.06.
For Inventory Turnover Ratio (X), as of Mar 24, the value is 1.18. This value is below the healthy minimum of 4. It has decreased from 1.50 (Mar 23) to 1.18, marking a decrease of 0.32.
For Interest Coverage Ratio (X), as of Mar 24, the value is 2.11. This value is below the healthy minimum of 3. It has increased from 2.08 (Mar 23) to 2.11, marking an increase of 0.03.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 1.51. This value is below the healthy minimum of 3. It has increased from 1.49 (Mar 23) to 1.51, marking an increase of 0.02.
For Enterprise Value (Cr.), as of Mar 24, the value is 970.55. It has increased from 783.90 (Mar 23) to 970.55, marking an increase of 186.65.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 4.48. This value exceeds the healthy maximum of 3. It has increased from 2.80 (Mar 23) to 4.48, marking an increase of 1.68.
For EV / EBITDA (X), as of Mar 24, the value is 19.30. This value exceeds the healthy maximum of 15. It has increased from 13.90 (Mar 23) to 19.30, marking an increase of 5.40.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 3.28. This value exceeds the healthy maximum of 3. It has increased from 1.94 (Mar 23) to 3.28, marking an increase of 1.34.
For Price / BV (X), as of Mar 24, the value is 2.09. This value is within the healthy range. It has increased from 1.74 (Mar 23) to 2.09, marking an increase of 0.35.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 3.28. This value exceeds the healthy maximum of 3. It has increased from 1.94 (Mar 23) to 3.28, marking an increase of 1.34.
For EarningsYield, as of Mar 24, the value is 0.01. This value is below the healthy minimum of 5. It has decreased from 0.02 (Mar 23) to 0.01, marking a decrease of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Davangere Sugar Company Ltd as of June 3, 2025 is: 2.97

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 June 3, 2025, Davangere Sugar Company Ltd is Overvalued by 18.41% compared to the current share price 3.64

Intrinsic Value of Davangere Sugar Company Ltd as of June 3, 2025 is: 3.92

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 June 3, 2025, Davangere Sugar Company Ltd is Undervalued by 7.69% compared to the current share price 3.64

Last 5 Year EPS CAGR: 31.95%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has shown consistent growth in sales (170.56 cr) and profit (6.33 cr) over the years.	The stock has a low average ROCE of 5.38%, which may not be favorable. The stock has a high average Working Capital Days of 406.75, which may not be favorable. The stock has a high average Cash Conversion Cycle of 391.63, which may not be favorable. The company has higher borrowings (186.00) compared to reserves (157.56), which may suggest financial risk.

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 Davangere Sugar Company Ltd:
1. Net Profit Margin: 5.65%
  - 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: 8.38% (Industry Average ROCE: 8.73%)
  - 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%: 3.6% (Industry Average ROE: 7.97%)
  - 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): 1.51
  - 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: 0.78
  - 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: 31.1 (Industry average Stock P/E: 31.73)
  - 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: 0.77
  - 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

Davangere Sugar Company Ltd. is a Public Limited Listed company incorporated on 28/09/1970 and has its registered office in the State of Karnataka, India. Company's Corporate Identification Number(CIN) is L37100KA1970PLC001949 and registration number is 001949. Currently Company is involved in the business activities of Manufacture of pulp, paper and paperboard. Company's Total Operating Revenue is Rs. 214.99 Cr. and Equity Capital is Rs. 94.08 Cr. for the Year ended 31/03/2025.

INDUSTRY	ADDRESS	CONTACT
Sugar	73/1, Post Box No.312, Shamanur Road, Davangere Karnataka 577004	ssg555@gmail.com https://davangeresugar.com

Management
Name	Position Held
Mr. S S Ganesh	Chairman & Managing Director
Mr. Abhijith G Shamanur	Executive Director
Mrs. Swathi Shamanur	Non Executive Director
Mr. Tumbegere Rudrappa	Independent Director
Mr. Thappagondanahally Rajashekarappa	Independent Director
Mrs. Veena Umapathy	Independent Director

FAQ

What is the intrinsic value of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd's intrinsic value (as of 02 June 2025) is ₹2.97 — 18.41% lower the current market price of 3.64, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 341 Cr. market cap, FY2025-2026 high/low of ₹10.8/3.45, reserves of 248 Cr, and liabilities of 721 Cr.

What is the Market Cap of Davangere Sugar Company Ltd?

The Market Cap of Davangere Sugar Company Ltd is 341 Cr..

What is the current Stock Price of Davangere Sugar Company Ltd as on 02 June 2025?

The current stock price of Davangere Sugar Company Ltd as on 02 June 2025 is 3.64.

What is the High / Low of Davangere Sugar Company Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Davangere Sugar Company Ltd stocks is ₹10.8/3.45.

What is the Stock P/E of Davangere Sugar Company Ltd?

The Stock P/E of Davangere Sugar Company Ltd is 31.1.

What is the Book Value of Davangere Sugar Company Ltd?

The Book Value of Davangere Sugar Company Ltd is 3.64.

What is the Dividend Yield of Davangere Sugar Company Ltd?

The Dividend Yield of Davangere Sugar Company Ltd is 0.00 %.

What is the ROCE of Davangere Sugar Company Ltd?

The ROCE of Davangere Sugar Company Ltd is 6.80 %.

What is the ROE of Davangere Sugar Company Ltd?

The ROE of Davangere Sugar Company Ltd is 3.22 %.

What is the Face Value of Davangere Sugar Company Ltd?

The Face Value of Davangere Sugar Company Ltd is 1.00.