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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rana Sugars Ltd

About the Company - Rana Sugars Ltd

Rana Sugars Ltd. is a Public Limited Listed company incorporated on 30/07/1991 and has its registered office in the State of Chandigarh, India. Company’s Corporate Identification Number(CIN) is L15322CH1991PLC011537 and registration number is 011537. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 1400.29 Cr. and Equity Capital is Rs. 153.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarSCO 49-50, Sector 8-C, Chandigarh Chandigarh 160009info@ranagroup.com
http://www.ranasugars.com
Management
NamePosition Held
Mr. Rana Ranjit SinghChairman & Non-Exe.Director
Mr. Rana Inder Pratap SinghManaging Director
Mr. Rana Veer Pratap SinghWhole Time Director
Ms. Navreet KaurInd. Non-Executive Director
Mr. Tara Chand MeeniaInd. Non-Executive Director
Mr. Basant Kumar BajajInd. Non-Executive Director

Rana Sugars Ltd. Share Price Update

Share PriceValue
Today₹26.29
Previous Day₹26.43

Basic Stock Data of Rana Sugars Ltd

Market Cap 391 Cr.
Current Price 25.4
High / Low30.4/19.4
Stock P/E7.57
Book Value 33.4
Dividend Yield0.00 %
ROCE12.6 %
ROE12.5 %
Face Value 10.0

Data Source: screener.in

Competitors of Rana Sugars Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Avadh Sugar & Energy Ltd 1,217 Cr. 608855/3888.02 4861.67 %10.4 %11.3 % 10.0
Dhampur Sugar Mills Ltd 1,620 Cr. 244326/20211.4 1592.07 %15.2 %16.6 % 10.0
Dharani Sugars & Chemicals Ltd 28.4 Cr. 8.5510.5/7.50 59.40.00 %8.84 %% 10.0
Shree Renuka Sugars Ltd 10,723 Cr. 50.457.2/39.4 5.590.00 %9.41 %% 1.00
Ponni Sugars (Erode) Ltd 383 Cr. 446515/3619.56 6921.46 %11.7 %9.34 % 10.0
Industry Average2,794.28 Cr271.395.80280.401.04%11.11%7.45%8.20

Rana Sugars Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales142291513373277264486427378370452500340
Expenses140263425308254236425404370346394467345
Operating Profit3288865232862238255833-5
OPM %2%10%17%17%8%11%13%5%2%7%13%7%-1%
Other Income732000-152941946
Interest544454165441086
Depreciation45117777777988
Profit before tax6720735412340201144821-13
Tax %0%0%-0%0%0%0%59%21%0%89%5%26%-12%
Net Profit672073541231716124515-15
EPS in Rs4.351.324.773.520.770.171.081.020.050.102.951.00-0.95

Rana Sugars Ltd Quarterly Chart

Rana Sugars Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5537046486988561,0919771,0921,3131,2221,4001,6271,629
Expenses4645925646747171,0129401,0491,2291,0951,2221,5141,525
Operating Profit90112842413979374284126178113104
OPM %16%16%13%3%16%7%4%4%6%10%13%7%6%
Other Income1-1-081271523177-132322
Interest79738087959099942218292329
Depreciation32333327282831333427283134
Profit before tax-205-30-8217-38-87-692591581098263
Tax %-0%1%19%33%-0%-19%1%-8%-3%-0%22%23%
Net Profit-205-24-5517-45-86-75266158856352
EPS in Rs-1.330.35-1.56-3.581.09-2.94-5.63-4.8817.3010.275.554.133.36
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Rana Sugars Ltd Profit & Loss Yearly Chart

Rana Sugars Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:7%
TTM:-2%
Compounded Profit Growth
10 Years:25%
5 Years:22%
3 Years:10%
TTM:49%
Stock Price CAGR
10 Years:28%
5 Years:49%
3 Years:53%
1 Year:16%
Return on Equity
10 Years:%
5 Years:%
3 Years:22%
Last Year:13%

Rana Sugars Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital154154154154154154154154154154154154154
Reserves616743-125-54-169-24323181267331360
Preference Capital41414141410424345485053
Borrowings644662768783823841823831258160172359187
Other Liabilities329366371385458258579605629642698619411
Total Liabilities1,1871,2491,3361,3101,4401,1991,3871,3461,0641,1361,2901,4621,111
Fixed Assets479454453439447455450431378421452521520
CWIP25403234292821303828571432
Investments0000000000000
Other Assets683755851836964717916886648688781926560
Total Assets1,1871,2491,3361,3101,4401,1991,3871,3461,0641,1361,2901,4621,111

Rana Sugars Ltd Reserves and Borrowings Chart

Rana Sugars Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 70543929311316010532914692-84
Cash from Investing Activity -21-24-17-15-27-36-63-28-36-62-123-98
Cash from Financing Activity -45-3326-96-52-87-103-85-246-76-3170
Net Cash Flow4-213-1914-10-7-8478-34-12

Rana Sugars Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days303033303224524640412829
Inventory Days533411516387401168231207104151196180
Days Payable16114315012916359196202157201201132
Cash Conversion Cycle4012983992882701338851-12-92377
Working Capital Days2151992622171841189062162771
ROCE %7%9%5%1%11%5%1%3%9%20%26%13%

Rana Sugars Ltd Financial Efficiency Indicators Chart

Rana Sugars Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters22.64%22.64%22.64%22.64%22.64%22.64%22.64%22.64%22.64%22.64%22.64%22.64%
FIIs1.23%1.98%1.86%1.90%2.80%2.32%1.96%0.14%0.01%0.00%1.73%0.00%
DIIs0.02%0.02%0.02%0.02%0.01%0.02%0.00%0.10%0.10%0.00%0.00%0.00%
Government1.66%1.66%1.66%1.66%1.66%1.67%1.67%1.67%1.67%1.66%1.66%1.66%
Public74.45%73.70%73.82%73.78%72.89%73.36%73.75%75.46%75.59%75.70%73.97%75.70%
No. of Shareholders66,45675,96185,12189,0091,14,0961,20,2431,18,5131,20,5491,19,4141,16,0791,15,4681,17,682

Rana Sugars Ltd Shareholding Pattern Chart

No. of Rana Sugars Ltd Shareholders

This stock is not held by any mutual fund

Rana Sugars Ltd ROCE Trend

Rana Sugars Ltd EPS Trend

Rana Sugars Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.135.5510.2717.29-4.88
Diluted EPS (Rs.)4.135.5510.2717.29-4.88
Cash EPS (Rs.)6.177.3612.0319.50-2.76
Book Value[Excl.RevalReserv]/Share (Rs.)31.5427.4121.8211.44-5.84
Book Value[Incl.RevalReserv]/Share (Rs.)31.5427.4121.8211.44-5.84
Revenue From Operations / Share (Rs.)106.0091.2079.5985.3671.10
PBDIT / Share (Rs.)8.9011.848.575.933.74
PBIT / Share (Rs.)6.8610.036.813.721.62
PBT / Share (Rs.)5.377.1010.2616.83-4.51
Net Profit / Share (Rs.)4.135.5510.2717.30-4.88
PBDIT Margin (%)8.4012.9710.766.945.25
PBIT Margin (%)6.4710.998.554.352.27
PBT Margin (%)5.067.7812.8919.71-6.34
Net Profit Margin (%)3.896.0812.9020.26-6.86
Return on Networth / Equity (%)13.0920.2447.07151.220.00
Return on Capital Employeed (%)15.3625.2921.6716.0822.57
Return On Assets (%)4.336.6013.8724.85-5.56
Long Term Debt / Equity (X)0.180.220.270.70-1.56
Total Debt / Equity (X)0.720.390.471.49-7.99
Asset Turnover Ratio (%)1.181.151.111.090.79
Current Ratio (X)1.111.111.050.900.71
Quick Ratio (X)0.350.350.470.480.30
Inventory Turnover Ratio (X)2.332.532.942.151.68
Interest Coverage Ratio (X)5.976.307.154.060.61
Interest Coverage Ratio (Post Tax) (X)3.774.525.692.860.20
Enterprise Value (Cr.)681.88585.60249.95260.72743.90
EV / Net Operating Revenue (X)0.410.410.200.190.68
EV / EBITDA (X)4.993.221.902.8712.96
MarketCap / Net Operating Revenue (X)0.200.310.120.030.04
Price / BV (X)0.691.040.440.28-0.58
Price / Net Operating Revenue (X)0.200.310.120.030.04
EarningsYield0.180.191.075.24-1.44

Rana Sugars Ltd Profitability Ratios (%)

Rana Sugars Ltd Liquidity Ratios

Rana Sugars Ltd Liquidity Ratios (%)

Rana Sugars Ltd Interest Coverage Ratios (X)

Rana Sugars Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rana Sugars Ltd

Fair Value: ₹32.24

The stock is undervalued by 26.92% compared to the current price ₹25.4

*Investments are subject to market risks

Strength and Weakness of Rana Sugars Ltd

StrengthWeakness
  1. The company has higher reserves (66.15 cr) compared to borrowings (37.38 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (341.77 cr) and profit (28.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.81 and average Dividend Yield of 7.82%.
  2. The stock has a low average ROCE of 9.17%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 121.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 167.25, which may not be favorable.

Should I Buy Rana Sugars Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rana Sugars Ltd:
    1. Net Profit Margin: 3.89%
      • 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: 15.36% (Industry Average ROCE: 12.55%)
      • 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): 3.77
      • 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: 0.35
      • 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: 7.63 (Industry average Stock P/E: 9.53)
      • 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: 0.72
      • 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 Rana 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