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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

KM Sugar Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:18 pm

Market Cap 349 Cr.
Current Price 37.9
High / Low50.4/27.0
Stock P/E15.2
Book Value 33.0
Dividend Yield0.00 %
ROCE9.96 %
ROE9.95 %
Face Value 2.00
PEG Ratio1.06

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

View Share Price Target for KM Sugar Mills Ltd

Competitors of KM Sugar Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 120 Cr. 18.529.4/15.2601 15.10.00 %102 %% 10.0
Dhampure Speciality Sugars Ltd 78.8 Cr. 99.4116/52.651.9 33.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 931 Cr. 140171/11227.4 1521.78 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,689 Cr. 194242/11614.1 93.71.03 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 634 Cr. 6.7411.5/6.2752.5 3.610.00 %6.86 %3.75 % 1.00
Industry Average2,417.17 Cr347.0156.83205.600.55%13.29%13.21%6.37

All Competitor Stocks of KM Sugar Mills Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales123.7963.67170.45201.9070.12105.87136.99159.77188.2090.57251.17169.17113.89
Expenses112.7950.21145.31178.7755.8995.38126.40152.69160.9785.77224.52154.12105.35
Operating Profit11.0013.4625.1423.1314.2310.4910.597.0827.234.8026.6515.058.54
OPM %8.89%21.14%14.75%11.46%20.29%9.91%7.73%4.43%14.47%5.30%10.61%8.90%7.50%
Other Income0.611.381.330.772.435.381.682.812.494.381.111.612.74
Interest1.483.724.312.851.772.863.934.162.143.625.323.992.27
Depreciation3.763.883.433.723.964.073.623.423.795.055.725.465.69
Profit before tax6.377.2418.7317.3310.938.944.722.3123.790.5116.727.213.32
Tax %33.91%15.33%25.36%23.66%32.11%23.49%28.39%32.90%25.85%-25.49%27.09%23.02%18.98%
Net Profit4.216.1313.9813.237.426.843.381.5517.640.6412.195.552.69
EPS in Rs0.460.671.521.440.810.740.370.171.920.071.320.600.29

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2011Sep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales287255273550346336463390531503548576699
Expenses275237240520316290446352481447475526625
Operating Profit13173230304617385056735074
OPM %4%7%12%6%9%14%4%10%9%11%13%9%11%
Other Income42376113714114101110
Interest1514131417101181811121415
Depreciation121091491013121515151620
Profit before tax-11-6139103729322834563148
Tax %-4%-11%1%17%-17%0%35%24%34%23%26%26%
Net Profit-11-6137123719241826412336
EPS in Rs-1.22-0.681.370.811.274.032.052.642.002.854.512.523.91
Dividend Payout %0%0%0%0%0%0%0%0%0%0%4%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)71.43%208.33%-48.65%26.32%-25.00%44.44%57.69%-43.90%
Change in YoY Net Profit Growth (%)0.00%136.90%-256.98%74.96%-51.32%69.44%13.25%-101.59%

KM Sugar Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:9%
TTM:-17%
Compounded Profit Growth
10 Years:9%
5 Years:4%
3 Years:3%
TTM:-28%
Stock Price CAGR
10 Years:28%
5 Years:47%
3 Years:12%
1 Year:10%
Return on Equity
10 Years:16%
5 Years:12%
3 Years:12%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital181818181818181818181818
Reserves-21-8-1104766151169195234257285
Borrowings821131469514199109174201224268291
Other Liabilities2230163146170130216166210166160185
Total Liabilities101153326270376313494527625643703779
Fixed Assets585165619594153160158159214209
CWIP0400007080512
Investments000387152724306376
Other Assets4398261205273212319339434454421482
Total Assets101153326270376313494527625643703779

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 36-137725728-3757329
Cash from Investing Activity -2-5-23-9-46-11-24-28-21-12-105-34
Cash from Financing Activity -331817-6043-581030169307
Net Cash Flow1-01422-6-123-31

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2011Sep 2012Sep 2013
Free Cash Flow-116.00-65.00-95.00-82.00-71.00-124.00-145.00-151.00-218.0013.00-65.00-81.00

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

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days9122128181826141410416
Inventory Days39133160217345151338248362350298289
Days Payable1524104133141102235111177123110116
Cash Conversion Cycle331217711222267128152200238192189
Working Capital Days9645944944486104164169144145
ROCE %9%25%16%19%28%21%17%14%12%15%9%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters64.56%64.56%64.56%64.56%64.56%56.52%56.52%56.52%56.52%56.51%56.51%56.51%
FIIs0.00%0.00%0.00%0.00%0.03%0.07%0.00%0.00%0.00%0.85%0.00%0.25%
Public35.44%35.44%35.44%35.44%35.41%43.41%43.48%43.48%43.48%42.64%43.49%43.23%
No. of Shareholders39,40839,96339,36945,17347,82047,12846,04545,76144,47745,88046,45354,814

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)3.052.524.512.851.93
Diluted EPS (Rs.)3.052.524.512.851.93
Cash EPS (Rs.)5.514.256.164.473.56
Book Value[Excl.RevalReserv]/Share (Rs.)32.9629.9227.4223.2020.27
Book Value[Incl.RevalReserv]/Share (Rs.)32.9629.9227.4223.2020.27
Revenue From Operations / Share (Rs.)71.4362.5659.6054.6457.76
PBDIT / Share (Rs.)8.516.649.016.536.54
PBIT / Share (Rs.)6.054.917.364.924.91
PBT / Share (Rs.)4.253.416.083.722.97
Net Profit / Share (Rs.)3.052.524.512.851.93
NP After MI And SOA / Share (Rs.)3.052.524.512.851.93
PBDIT Margin (%)11.9010.6015.1111.9511.32
PBIT Margin (%)8.467.8512.358.998.50
PBT Margin (%)5.955.4410.206.805.14
Net Profit Margin (%)4.274.037.565.213.34
NP After MI And SOA Margin (%)4.274.037.565.213.34
Return on Networth / Equity (%)9.268.4316.4312.299.51
Return on Capital Employeed (%)16.1413.3323.1616.7516.55
Return On Assets (%)3.603.306.454.203.21
Long Term Debt / Equity (X)0.090.180.100.180.37
Total Debt / Equity (X)0.960.970.880.840.93
Asset Turnover Ratio (%)0.880.850.860.851.04
Current Ratio (X)1.021.041.191.211.24
Quick Ratio (X)0.130.070.090.180.28
Inventory Turnover Ratio (X)1.401.081.131.401.41
Dividend Payout Ratio (NP) (%)0.000.004.430.000.00
Dividend Payout Ratio (CP) (%)0.000.003.240.000.00
Earning Retention Ratio (%)0.000.0095.570.000.00
Cash Earning Retention Ratio (%)0.000.0096.760.000.00
Interest Coverage Ratio (X)4.734.417.035.473.37
Interest Coverage Ratio (Post Tax) (X)2.702.684.523.391.99
Enterprise Value (Cr.)538.24500.06483.80280.84227.78
EV / Net Operating Revenue (X)0.810.860.880.550.42
EV / EBITDA (X)6.888.195.844.673.79
MarketCap / Net Operating Revenue (X)0.390.410.480.210.11
Retention Ratios (%)0.000.0095.560.000.00
Price / BV (X)0.850.861.060.500.31
Price / Net Operating Revenue (X)0.390.410.480.210.11
EarningsYield0.100.090.150.240.30

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KM Sugar Mills Ltd as of October 15, 2024 is: ₹50.91

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 October 15, 2024, KM Sugar Mills Ltd is Undervalued by 34.33% compared to the current share price ₹37.90

Intrinsic Value of KM Sugar Mills Ltd as of October 15, 2024 is: ₹58.21

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 October 15, 2024, KM Sugar Mills Ltd is Undervalued by 53.59% compared to the current share price ₹37.90

Last 5 Year EPS CAGR: 14.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.25%, which is a positive sign.
  2. The company has shown consistent growth in sales (442.85 cr) and profit (23.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 93.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 144.25, which may not be favorable.
  3. The company has higher borrowings (161.92) compared to reserves (115.33), 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 KM Sugar Mills Ltd:
    1. Net Profit Margin: 4.27%
      • 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: 16.14% (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%: 9.26% (Industry Average ROE: 11.89%)
      • 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): 2.7
      • 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: 0.13
      • 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: 15.2 (Industry average Stock P/E: 49.25)
      • 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: 0.96
      • 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

KM Sugar Mills Ltd. is a Public Limited Listed company incorporated on 17/12/1971 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L15421UP1971PLC003492 and registration number is 003492. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 548.34 Cr. and Equity Capital is Rs. 18.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Sugar11, Moti Bhawan, Collectorganj, Kanpur Uttar Pradesh 208001cs@kmsugar.com
http://www.kmsugar.com
Management
NamePosition Held
Mr. L K JhunjhunwalaChairman
Mr. Aditya JhunjhunwalaManaging Director
Mr. Sanjay JhunjhunwalaJoint Managing Director
Mr. Subhash Chandra AgarwalExecutive Director & CEO
Mr. Bibhas Kumar SrivastavInd.& Non Exe.Director
Mrs. Madhu MathurInd.& Non Exe.Director
Mr. S K GuptaInd.& Non Exe.Director
Dr. Sushil SolomonInd.& Non Exe.Director
Mr. Bakshi RamInd.& Non Exe.Director
Mrs. Archna AgarwalAddnl.Non Exe.Independent Director
Mr. Narendra MohanAddnl.Non Exe.Independent Director

FAQ

What is the latest fair value of KM Sugar Mills Ltd?

The latest fair value of KM Sugar Mills Ltd is ₹50.91.

What is the Market Cap of KM Sugar Mills Ltd?

The Market Cap of KM Sugar Mills Ltd is 349 Cr..

What is the current Stock Price of KM Sugar Mills Ltd as on 15 October 2024?

The current stock price of KM Sugar Mills Ltd as on 15 October 2024 is ₹37.9.

What is the High / Low of KM Sugar Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of KM Sugar Mills Ltd stocks is 50.4/27.0.

What is the Stock P/E of KM Sugar Mills Ltd?

The Stock P/E of KM Sugar Mills Ltd is 15.2.

What is the Book Value of KM Sugar Mills Ltd?

The Book Value of KM Sugar Mills Ltd is 33.0.

What is the Dividend Yield of KM Sugar Mills Ltd?

The Dividend Yield of KM Sugar Mills Ltd is 0.00 %.

What is the ROCE of KM Sugar Mills Ltd?

The ROCE of KM Sugar Mills Ltd is 9.96 %.

What is the ROE of KM Sugar Mills Ltd?

The ROE of KM Sugar Mills Ltd is 9.95 %.

What is the Face Value of KM Sugar Mills Ltd?

The Face Value of KM Sugar Mills Ltd is 2.00.

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 KM Sugar Mills 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