Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ponni Sugars (Erode) Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:19 pm

Market Cap 427 Cr.
Current Price 496
High / Low518/344
Stock P/E9.10
Book Value 642
Dividend Yield1.41 %
ROCE10.4 %
ROE9.33 %
Face Value 10.0
PEG Ratio1.05

Competitors of Ponni Sugars (Erode) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Triveni Engineering & Industries Ltd 8,177 Cr. 374417/26620.7 1330.87 %14.8 %14.2 % 1.00
Ugar Sugar Works Ltd 977 Cr. 86.8136/64.046.2 20.90.58 %10.8 %9.30 % 1.00
Magadh Sugar & Energy Ltd 1,138 Cr. 808866/4039.78 5290.88 %14.5 %16.8 % 10.0
KM Sugar Mills Ltd 444 Cr. 48.250.4/24.215.8 33.00.00 %9.78 %9.71 % 2.00
Avadh Sugar & Energy Ltd 1,333 Cr. 666855/48010.4 5141.56 %12.9 %13.4 % 10.0
Industry Average2,004.68 Cr299.5125.15193.710.69%10.19%12.29%6.43

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales626590646984150102999812812471
Expenses51597664558413093899811011061
Operating Profit126140151199110181510
OPM %18%10%16%1%21%1%13%9%11%0%14%12%14%
Other Income11321481210224
Interest0000000000000
Depreciation3222222222222
Profit before tax105151142269108181512
Tax %20%12%15%58%22%13%16%15%34%13%16%21%-16%
Net Profit8513011222877151214
EPS in Rs9.205.3115.130.4713.112.5125.278.867.947.7517.4313.5515.77

Last Updated: June 10, 2024, 10:20 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:54 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales212169160169251196185310256288435421
Expenses186170165168213175165269226253395378
Operating Profit27-1-523821204130364043
OPM %13%-1%-3%1%15%11%11%13%12%12%9%10%
Other Income081112-6-925671518
Interest475652331000
Depreciation1236666677689
Profit before tax12-3-53224123629364852
Tax %-57%-70%33%27%28%12%30%14%10%19%19%10%
Net Profit19-5-4216383126293847
EPS in Rs22.23-5.56-4.242.2118.523.889.8035.9829.8434.0244.5954.50
Dividend Payout %7%-11%0%54%14%26%20%11%17%16%15%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-126.32%20.00%150.00%700.00%-81.25%166.67%287.50%-16.13%11.54%31.03%23.68%
Change in YoY Net Profit Growth (%)0.00%146.32%130.00%550.00%-781.25%247.92%120.83%-303.63%27.67%19.50%-7.35%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:18%
3 Years:18%
TTM:-3%
Compounded Profit Growth
10 Years:23%
5 Years:38%
3 Years:22%
TTM:22%
Stock Price CAGR
10 Years:12%
5 Years:34%
3 Years:32%
1 Year:30%
Return on Equity
10 Years:7%
5 Years:9%
3 Years:9%
Last Year:9%

Last Updated: June 17, 2024, 2:49 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9999999999999
Reserves103121115112113248264284239318360444586
Borrowings508283787749735200000
Other Liabilities66524551503248634850506276
Total Liabilities228263252249249338328391315376419515671
Fixed Assets44133133128123118120114109104112118118
CWIP84010000000417
Investments212121212114115616995151170225367
Other Assets78109971001057953108111120133170179
Total Assets228263252249249338328391315376419515671

Reserves and Borrowings Chart

Ponni Sugars (Erode) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 54-991163551-2216291111
Cash from Investing Activity -85-14-3-00-0-5213-131
Cash from Financing Activity 3024-7-11-6-34-4623-19-24-4-5
Net Cash Flow-11-1-001-13-37-67

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-55.00-84.00-83.00-75.00-11.0014.00-15.0021.0030.0036.0040.0043.00

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 Days292534613534758258571929
Inventory Days1982252261771139324369111143107122
Days Payable74799985341091385176664835
Cash Conversion Cycle153171162153114181801009313578116
Working Capital Days90108106926089880771045484
ROCE %9%-1%-5%-1%13%6%6%13%10%10%12%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters42.36%42.36%42.65%42.36%42.36%42.36%42.36%42.36%42.36%42.36%42.36%42.36%
FIIs21.17%21.17%18.82%19.43%19.58%23.21%23.28%23.31%23.27%22.91%22.85%22.64%
DIIs3.54%3.54%3.56%3.53%3.53%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public32.93%32.93%34.97%34.67%34.52%34.39%34.31%34.28%34.32%34.70%34.74%34.96%
No. of Shareholders8,65310,38910,40614,91315,57715,22715,22814,67316,66017,43417,33517,044

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)54.4944.5834.0129.8435.98
Diluted EPS (Rs.)54.4944.5834.0129.8435.98
Cash EPS (Rs.)64.6253.4041.5038.3444.57
Book Value[Excl.RevalReserv]/Share (Rs.)641.77526.62428.46379.55287.74
Book Value[Incl.RevalReserv]/Share (Rs.)641.77526.62428.46379.55287.74
Dividend / Share (Rs.)7.006.505.505.004.00
Revenue From Operations / Share (Rs.)489.89506.31335.29297.94361.03
PBDIT / Share (Rs.)70.6264.5949.4542.3752.83
PBIT / Share (Rs.)60.4955.7841.9733.8744.23
PBT / Share (Rs.)60.3455.3741.8333.2441.73
Net Profit / Share (Rs.)54.4944.5834.0129.8435.98
PBDIT Margin (%)14.4112.7514.7414.2214.63
PBIT Margin (%)12.3411.0112.5111.3612.25
PBT Margin (%)12.3110.9312.4711.1511.55
Net Profit Margin (%)11.128.8010.1410.019.96
Return on Networth / Equity (%)8.498.467.937.8612.50
Return on Capital Employeed (%)9.1310.289.538.7514.67
Return On Assets (%)7.747.456.986.829.81
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.000.000.06
Asset Turnover Ratio (%)0.750.930.720.740.87
Current Ratio (X)4.893.003.292.771.97
Quick Ratio (X)2.271.281.521.571.30
Inventory Turnover Ratio (X)3.844.623.764.634.17
Dividend Payout Ratio (NP) (%)11.9212.3314.7013.405.55
Dividend Payout Ratio (CP) (%)10.0510.3012.0410.434.48
Earning Retention Ratio (%)88.0887.6785.3086.6094.45
Cash Earning Retention Ratio (%)89.9589.7087.9689.5795.52
Interest Coverage Ratio (X)467.15158.71354.4267.4816.95
Interest Coverage Ratio (Post Tax) (X)361.46110.54244.7548.5212.35
Enterprise Value (Cr.)304.61308.56188.34104.64132.62
EV / Net Operating Revenue (X)0.720.700.650.400.42
EV / EBITDA (X)5.025.554.432.872.92
MarketCap / Net Operating Revenue (X)0.820.780.680.490.37
Retention Ratios (%)88.0787.6685.2986.5994.44
Price / BV (X)0.620.750.530.380.46
Price / Net Operating Revenue (X)0.820.780.680.490.37
EarningsYield0.130.110.140.200.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 552.76

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.

Undervalued: 11.44% compared to the current price 496

Intrinsic Value: 600.63

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 21.09% compared to the current price ₹496

Last 5 Year EPS CAGR: 8.66%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (263.42 cr) compared to borrowings (35.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (254.33 cr) and profit (20.50 cr) over the years.
  1. The stock has a low average ROCE of 6.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 80.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 122.75, which may not be favorable.

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 Ponni Sugars (Erode) Ltd:
    1. Net Profit Margin: 11.12%
      • 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: 9.13% (Industry Average ROCE: %)
      • 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%: 8.49% (Industry Average ROE: %)
      • 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): 361.46
      • 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: 2.27
      • 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: 9.10 (Industry average Stock P/E: )
      • 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: 0.00
      • 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

Ponni Sugars (Erode) Ltd. is a Public Limited Listed company incorporated on 26/12/1996 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15422TN1996PLC037200 and registration number is 037200. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 288.35 Cr. and Equity Capital is Rs. 8.60 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarEsvin House, Chennai (Madras) Tamil Nadu 600096investor@ponnisugars.com
http://www.ponnisugars.com
Management
NamePosition Held
Mr. N Gopala RatnamChairman
Mr. N RamanathanManaging Director
Mr. Mohan Verghese ChunkathDirector
Mr. Bharti Chhotubhai PithawallaDirector
Mr. P ManoharanDirector
Mr. Arun G BijurDirector
Dr. Lakshmi NadkarniDirector
Mr. Chellamani NareshDirector

FAQ

What is the latest fair value of Ponni Sugars (Erode) Ltd?

The latest fair value of Ponni Sugars (Erode) Ltd is ₹552.76.

What is the Market Cap of Ponni Sugars (Erode) Ltd?

The Market Cap of Ponni Sugars (Erode) Ltd is 427 Cr..

What is the current Stock Price of Ponni Sugars (Erode) Ltd as on 19 June 2024?

The current stock price of Ponni Sugars (Erode) Ltd as on 19 June 2024 is ₹496.

What is the High / Low of Ponni Sugars (Erode) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ponni Sugars (Erode) Ltd stocks is 518/344.

What is the Stock P/E of Ponni Sugars (Erode) Ltd?

The Stock P/E of Ponni Sugars (Erode) Ltd is 9.10.

What is the Book Value of Ponni Sugars (Erode) Ltd?

The Book Value of Ponni Sugars (Erode) Ltd is 642.

What is the Dividend Yield of Ponni Sugars (Erode) Ltd?

The Dividend Yield of Ponni Sugars (Erode) Ltd is 1.41 %.

What is the ROCE of Ponni Sugars (Erode) Ltd?

The ROCE of Ponni Sugars (Erode) Ltd is 10.4 %.

What is the ROE of Ponni Sugars (Erode) Ltd?

The ROE of Ponni Sugars (Erode) Ltd is 9.33 %.

What is the Face Value of Ponni Sugars (Erode) Ltd?

The Face Value of Ponni Sugars (Erode) 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 Ponni Sugars (Erode) 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