Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ponni Sugars (Erode) Ltd

About the Company - Ponni Sugars (Erode) Ltd

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. Arun G BijurDirector
Mr. Bimal PoddarDirector
Mr. V SridarDirector
Dr. Nanditha KrishnaDirector
Mr. K BharathanDirector
Mr. Mohan Verghese ChunkathDirector
Mr. Bharti Chhotubhai PithawallaDirector
Mr. P ManoharanDirector

Ponni Sugars (Erode) Ltd. Share Price Update

Share PriceValue
Today₹419.00
Previous Day₹422.50

Basic Stock Data of Ponni Sugars (Erode) Ltd

Market Cap 362 Cr.
Current Price 422
High / Low515/361
Stock P/E9.03
Book Value 692
Dividend Yield1.54 %
ROCE11.7 %
ROE9.34 %
Face Value 10.0

Data Source: screener.in

Competitors of Ponni Sugars (Erode) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Uttam Sugar Mills Ltd 1,409 Cr. 369536/2168.84 1610.68 %19.1 %23.8 % 10.0
Dwarikesh Sugar Industries Ltd 1,541 Cr. 81.8110/75.014.4 42.02.44 %15.5 %14.9 % 1.00
Dhampur Sugar Mills Ltd 1,598 Cr. 241326/20211.2 1592.06 %15.2 %16.6 % 10.0
Rajshree Sugars & Chemicals Ltd 244 Cr. 73.6102/32.611.4 83.60.00 %4.61 %4.06 % 10.0
Shree Renuka Sugars Ltd 9,961 Cr. 46.857.2/39.4 5.590.00 %9.41 %% 1.00
Industry Average2,950.60 Cr162.449.1790.241.04%12.76%11.87%6.40

Ponni Sugars (Erode) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales78556265906469841501029998128
Expenses6753515976645584130938998110
Operating Profit10212614015119911018
OPM %13%3%18%10%16%1%21%1%13%9%11%0%14%
Other Income41113214812102
Interest0000000000000
Depreciation2232222222222
Profit before tax13110515114226910818
Tax %5%4%20%12%15%58%22%13%16%15%34%13%16%
Net Profit121851301122287715
EPS in Rs14.040.749.205.3115.130.4713.112.5125.278.867.947.7517.43

Ponni Sugars (Erode) Ltd Quarterly Chart

Ponni Sugars (Erode) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales269212169160169251196185310256288435427
Expenses237186170165168213175165269226253395389
Operating Profit3227-1-523821204130364038
OPM %12%13%-1%-3%1%15%11%11%13%12%12%9%9%
Other Income-1081112-6-925671515
Interest1475652331000
Depreciation31236666677688
Profit before tax2612-3-53224123629364845
Tax %32%-57%-70%33%27%28%12%30%14%10%19%19%
Net Profit1819-5-4216383126293836
EPS in Rs20.6922.23-5.56-4.242.2118.523.889.8035.9829.8434.0244.5941.98
Dividend Payout %12%7%-11%0%54%14%26%20%11%17%16%15%

Ponni Sugars (Erode) Ltd Profit & Loss Yearly Chart

Ponni Sugars (Erode) Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:17%
3 Years:12%
TTM:11%
Compounded Profit Growth
10 Years:6%
5 Years:23%
3 Years:8%
TTM:-6%
Stock Price CAGR
10 Years:17%
5 Years:30%
3 Years:48%
1 Year:2%
Return on Equity
10 Years:6%
5 Years:8%
3 Years:9%
Last Year:9%

Ponni Sugars (Erode) Ltd 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

Ponni Sugars (Erode) Ltd 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

Ponni Sugars (Erode) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days162925346135347582585719
Inventory Days921982252261771139324369111143106
Days Payable62747999853410913851766648
Cash Conversion Cycle46153171162153114181801009313577
Working Capital Days24901081069260898807710454
ROCE %21%9%-1%-5%-1%13%6%6%13%10%10%12%

Ponni Sugars (Erode) Ltd Financial Efficiency Indicators Chart

Ponni Sugars (Erode) Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters42.36%42.36%42.36%42.65%42.36%42.36%42.36%42.36%42.36%42.36%42.36%42.36%
FIIs21.17%21.17%21.17%18.82%19.43%19.58%23.21%23.28%23.31%23.27%22.91%22.85%
DIIs3.54%3.54%3.54%3.56%3.53%3.53%0.05%0.05%0.05%0.05%0.05%0.05%
Public32.93%32.93%32.93%34.97%34.67%34.52%34.39%34.31%34.28%34.32%34.70%34.74%
No. of Shareholders7,8738,65310,38910,40614,91315,57715,22715,22814,67316,66017,43417,335

Ponni Sugars (Erode) Ltd Shareholding Pattern Chart

No. of Ponni Sugars (Erode) Ltd Shareholders

This stock is not held by any mutual fund

Ponni Sugars (Erode) Ltd ROCE Trend

Ponni Sugars (Erode) Ltd EPS Trend

Ponni Sugars (Erode) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)44.5834.0129.8435.989.80
Diluted EPS (Rs.)44.5834.0129.8435.989.80
Cash EPS (Rs.)53.4041.5038.3444.5716.70
Book Value[Excl.RevalReserv]/Share (Rs.)526.62428.46379.55287.74340.32
Book Value[Incl.RevalReserv]/Share (Rs.)526.62428.46379.55287.74340.32
Dividend / Share (Rs.)6.505.505.004.002.00
Revenue From Operations / Share (Rs.)506.31335.29297.94361.03214.93
PBDIT / Share (Rs.)64.5949.4542.3752.8326.43
PBIT / Share (Rs.)55.7841.9733.8744.2319.53
PBT / Share (Rs.)55.3741.8333.2441.7313.95
Net Profit / Share (Rs.)44.5834.0129.8435.989.80
PBDIT Margin (%)12.7514.7414.2214.6312.29
PBIT Margin (%)11.0112.5111.3612.259.08
PBT Margin (%)10.9312.4711.1511.556.49
Net Profit Margin (%)8.8010.1410.019.964.56
Return on Networth / Equity (%)8.467.937.8612.502.88
Return on Capital Employeed (%)10.289.538.7514.675.57
Return On Assets (%)7.456.986.829.812.15
Long Term Debt / Equity (X)0.000.000.000.010.00
Total Debt / Equity (X)0.000.000.000.060.11
Asset Turnover Ratio (%)0.930.720.740.870.51
Current Ratio (X)3.003.292.771.971.20
Quick Ratio (X)1.281.521.571.300.48
Inventory Turnover Ratio (X)4.623.764.634.173.57
Dividend Payout Ratio (NP) (%)12.3314.7013.405.5510.20
Dividend Payout Ratio (CP) (%)10.3012.0410.434.485.98
Earning Retention Ratio (%)87.6785.3086.6094.4589.80
Cash Earning Retention Ratio (%)89.7087.9689.5795.5294.02
Interest Coverage Ratio (X)158.71354.4267.4816.956.55
Interest Coverage Ratio (Post Tax) (X)110.54244.7548.5212.353.81
Enterprise Value (Cr.)308.56188.34104.64132.62147.85
EV / Net Operating Revenue (X)0.700.650.400.420.79
EV / EBITDA (X)5.554.432.872.926.50
MarketCap / Net Operating Revenue (X)0.780.680.490.370.63
Retention Ratios (%)87.6685.2986.5994.4489.79
Price / BV (X)0.750.530.380.460.39
Price / Net Operating Revenue (X)0.780.680.490.370.63
EarningsYield0.110.140.200.260.07

Ponni Sugars (Erode) Ltd Profitability Ratios (%)

Ponni Sugars (Erode) Ltd Liquidity Ratios

Ponni Sugars (Erode) Ltd Liquidity Ratios (%)

Ponni Sugars (Erode) Ltd Interest Coverage Ratios (%)

Ponni Sugars (Erode) Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ponni Sugars (Erode) Ltd

Fair Value: ₹592.62

The stock is undervalued by 40.43% compared to the current price ₹422

*Investments are subject to market risks

Strength and Weakness of Ponni Sugars (Erode) Ltd

StrengthWeakness
  1. The company has higher reserves (254.38 cr) compared to borrowings (37.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (255.92 cr) and profit (20.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 47.13 and average Dividend Yield of 11.24%.
  2. The stock has a low average ROCE of 7.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 75.08, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 116.83, which may not be favorable.

Should I Buy Ponni Sugars (Erode) Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ponni Sugars (Erode) Ltd:
    1. Net Profit Margin: 8.80%
      • 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: 10.28% (Industry Average ROCE: 11.32%)
      • 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. Interest Coverage Ratio (Post Tax): 110.54
      • 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.
    4. Quick Ratio: 1.28
      • 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.
    5. ✓ Stock P/E: 9.56 (Industry average Stock P/E: 11.1)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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