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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sakthi Sugars Ltd

About the Company - Sakthi Sugars Ltd

Sakthi Sugars Ltd. is a Public Limited Listed company incorporated on 12/05/1961 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15421TZ1961PLC000396 and registration number is 000396. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 788.02 Cr. and Equity Capital is Rs. 118.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarSugar Unit & Co-Generation Plant: Bhavani Taluk , Erode District Tamil Nadu 638315shares@sakthisugars.com
http://www.sakthisugars.com
Management
NamePosition Held
Dr. M ManickamChairman & Managing Director
Mr. M BalasubramaniamManaging Director
Mr. M SrinivaasanJoint Managing Director
Mr. C RangamaniDirector
Mr. S S MuthuvelappanDirector
Mr. P K ChandranDirector
Mr. N K VijayanDirector
Mr. K V RamachandranDirector
Mr. S ChandrasekharDirector
Mr. S BalasubramanianDirector
Mrs. Priya BhansaliDirector
Mr. V K SwaminathaDirector

Sakthi Sugars Ltd. Share Price Update

Share PriceValue
Today₹38.50
Previous Day₹39.01

Basic Stock Data of Sakthi Sugars Ltd

Market Cap 454 Cr.
Current Price 38.2
High / Low46.8/18.1
Stock P/E
Book Value 4.56
Dividend Yield0.00 %
ROCE10.8 %
ROE%
Face Value 10.0

Data Source: screener.in

Competitors of Sakthi Sugars Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Uttam Sugar Mills Ltd 1,381 Cr. 362536/2168.61 1610.69 %19.1 %23.8 % 10.0
Kothari Sugars & Chemicals Ltd 526 Cr. 63.471.7/32.411.1 33.41.57 %17.6 %14.9 % 10.0
Dalmia Bharat Sugar & Industries Ltd 3,287 Cr. 406490/31010.9 3630.97 %12.2 %9.73 % 2.00
Dwarikesh Sugar Industries Ltd 1,524 Cr. 80.9110/75.014.1 42.02.47 %15.5 %14.9 % 1.00
Mawana Sugars Ltd 397 Cr. 102121/77.69.22 88.32.95 %5.58 %3.56 % 10.0
Industry Average185.6 Cr202.8610.79137.541.73%14%13.38%6.6

Sakthi Sugars Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1301202251187362178302242186323370237
Expenses1321312091137970156269227184284331229
Operating Profit-2-11165-5-7223315339398
OPM %-2%-9%7%5%-7%-12%12%11%6%1%12%10%4%
Other Income1311736108617527542151082
Interest49495251536064252828272626
Depreciation10101077724999999
Profit before tax-60-6771-50-61-6520174519218111-25
Tax %-0%-19%0%1%-0%-0%2%0%-6%-1%-1%28%36%
Net Profit-60-8070-50-61-652017351922081-16
EPS in Rs-5.03-6.715.93-4.17-5.11-5.501.6714.590.411.6418.516.78-1.32

Sakthi Sugars Ltd Quarterly Chart

Sakthi Sugars Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,1031,1707078378219265295058036334321,0541,117
Expenses9731,0876917237788125665608816244169581,028
Operating Profit130831611343114-37-55-7810159589
OPM %12%7%2%14%5%12%-7%-11%-10%2%4%9%8%
Other Income5333237126-12100121122114465379
Interest12313818713181140150260202197234108107
Depreciation65666664745753524939463737
Profit before tax-54-117-234-49-7543-252-267-208-104-150416324
Tax %11%26%32%30%27%30%30%20%1%-12%-0%-1%
Net Profit-48-87-159-35-5530-177-214-206-116-150418304
EPS in Rs-12.96-23.75-16.57-3.61-5.722.55-14.90-18.01-17.33-9.78-12.6435.1625.61
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Sakthi Sugars Ltd Profit & Loss Yearly Chart

Sakthi Sugars Ltd Growth

Compounded Sales Growth
10 Years:-1%
5 Years:15%
3 Years:9%
TTM:19%
Compounded Profit Growth
10 Years:8%
5 Years:16%
3 Years:27%
TTM:66%
Stock Price CAGR
10 Years:10%
5 Years:33%
3 Years:61%
1 Year:92%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Sakthi Sugars Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3737969696119119119119119119119119
Reserves559451357296270317140-74-279-397-547-130-65
Borrowings1,3351,2561,0811,1971,079920919900841918938852867
Other Liabilities3694445685866106416829461,1521,1721,302827713
Total Liabilities2,3012,1882,1032,1752,0551,9961,8591,8911,8321,8121,8121,6681,635
Fixed Assets1,3211,2481,1601,0771,0051,3541,2391,189994957824794776
CWIP133149149149150323200103435
Investments1631631631631641911813172017170163
Other Assets684628631786736419570689822835971670660
Total Assets2,3012,1882,1032,1752,0551,9961,8591,8911,8321,8121,8121,6681,635

Sakthi Sugars Ltd Reserves and Borrowings Chart

Sakthi Sugars Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 16622180-94125165-4336483137107
Cash from Investing Activity -5-7053611838623609121
Cash from Financing Activity -118-210-94104-169-189-45-62-58-37-32-238
Net Cash Flow44-60-947-3359-2-3-4-513-11

Sakthi Sugars Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days3435245748947494853
Inventory Days5541907371649511441655931
Days Payable921121881801961472202621691796860
Cash Conversion Cycle-3-37-75-50-77-73-78-99-123-106-3-26
Working Capital Days-110-131-344-268-217-183-330-660-444-197-302-65
ROCE %3%1%-3%4%0%6%-7%4%-1%-3%-3%11%

Sakthi Sugars Ltd Financial Efficiency Indicators Chart

Sakthi Sugars Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.83%59.83%59.83%59.83%59.83%59.83%59.84%59.83%59.83%59.83%59.83%59.83%
FIIs0.00%0.00%0.00%0.00%0.00%0.01%0.04%0.56%0.01%0.02%1.16%0.00%
DIIs18.24%12.57%11.28%11.28%11.28%10.56%0.04%0.04%0.04%0.04%0.04%0.04%
Government0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%
Public21.15%26.83%28.12%28.12%28.12%28.82%39.31%38.79%39.33%39.32%38.17%39.34%
No. of Shareholders36,95242,91445,79745,62048,22149,31149,78051,68551,30551,36055,31256,748

Sakthi Sugars Ltd Shareholding Pattern Chart

No. of Sakthi Sugars Ltd Shareholders

This stock is not held by any mutual fund

Sakthi Sugars Ltd ROCE Trend

Sakthi Sugars Ltd EPS Trend

Sakthi Sugars Ltd Key Financial Ratios

MonthMar 18Mar 17Mar 16Mar 15Mar 14
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-14.903.46-4.94-3.6176.49
Diluted EPS (Rs.)-14.903.46-4.94-3.6176.49
Cash EPS (Rs.)-10.467.352.003.0243.93
Book Value[Excl.RevalReserv]/Share (Rs.)21.7423.121.031.1247.30
Book Value[Incl.RevalReserv]/Share (Rs.)21.7423.1238.1540.13119.34
Revenue From Operations / Share (Rs.)44.4977.9585.3386.94206.56
PBDIT / Share (Rs.)-2.2711.668.0714.9417.77
PBIT / Share (Rs.)-6.716.870.338.314.50
PBT / Share (Rs.)-21.223.63-7.82-5.13-23.73
Net Profit / Share (Rs.)-14.902.55-5.72-3.6130.65
NP After MI And SOA / Share (Rs.)-14.903.31-4.94-4.2730.17
PBDIT Margin (%)-5.0914.969.4517.188.60
PBIT Margin (%)-15.088.800.399.552.17
PBT Margin (%)-47.694.65-9.16-5.90-11.48
Net Profit Margin (%)-33.483.27-6.70-4.1514.84
NP After MI And SOA Margin (%)-33.484.24-5.78-4.9114.60
Return on Networth / Equity (%)-68.5414.30-480.82-382.6365.18
Return on Capital Employeed (%)-10.188.330.287.962.07
Return On Assets (%)-9.522.14-2.31-1.897.01
Long Term Debt / Equity (X)1.762.0474.1355.171.64
Total Debt / Equity (X)2.212.4582.2374.872.51
Asset Turnover Ratio (%)0.280.450.380.260.24
Current Ratio (X)0.410.290.420.330.37
Quick Ratio (X)0.310.160.300.250.17
Inventory Turnover Ratio (X)3.655.815.151.812.33
Interest Coverage Ratio (X)-0.170.980.981.110.62
Interest Coverage Ratio (Post Tax) (X)-0.030.490.290.730.40
Enterprise Value (Cr.)746.391046.001142.82875.851426.07
EV / Net Operating Revenue (X)1.411.131.391.050.71
EV / EBITDA (X)-27.707.5514.726.098.34
MarketCap / Net Operating Revenue (X)0.360.420.420.140.08
Price / BV (X)0.741.4335.5811.650.39
Price / Net Operating Revenue (X)0.360.420.420.140.08
EarningsYield-0.920.10-0.13-0.321.67

Sakthi Sugars Ltd Profitability Ratios (%)

Sakthi Sugars Ltd Liquidity Ratios

Sakthi Sugars Ltd Liquidity Ratios (%)

Sakthi Sugars Ltd Interest Coverage Ratios (X)

Sakthi Sugars Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sakthi Sugars Ltd

Fair Value: ₹10.47

The stock is overvalued by 72.60% compared to the current price ₹38.2

*Investments are subject to market risks

Strength and Weakness of Sakthi Sugars Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -270.92, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -62.50, which is a positive sign.
  1. The stock has a low average ROCE of 1.00%, which may not be favorable.
  2. The company has higher borrowings (1,007.92) compared to reserves (69.08), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (476.69) and profit (-55.92).

Should I Buy Sakthi Sugars Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sakthi Sugars Ltd:
    1. Net Profit Margin: -33.48%
      • 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: -10.18% (Industry Average ROCE: 12.04%)
      • 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): -0.03
      • 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: 0.31
      • 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 of N/A (Industry average Stock P/E: 8.46)
      • 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: 2.21
      • 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 Sakthi 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