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

Fundamental Analysis of Ugar Sugar Works Ltd

About the Company - Ugar Sugar Works Ltd

Ugar Sugar Works Ltd. is a Public Limited Listed company incorporated on 11/09/1939 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L15421PN1939PLC006738 and registration number is 006738. Currently company belongs to the Industry of Sugar. Company’s Total Operating Revenue is Rs. 1137.46 Cr. and Equity Capital is Rs. 11.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarMahaveer Nagar (Wakharbhag), Sangli Maharashtra 416416usw.sangli@ugarsugar.com
http://www.ugarsugar.com
Management
NamePosition Held
Mr. Rajendra V ShirgaokarChairman Emeritus
Mr. Shishir S ShirgaokarChairman
Mr. Chandan S ShirgaokarManaging Director
Mr. Niraj S ShirgaokarManaging Director
Mr. Prafulla V ShirgaokarNon Executive Director
Mr. Sachin R ShirgaokarNon Executive Director
Mr. Sohan S ShirgaokarNon Executive Director
Mrs. Shilpa KumarNon Executive Woman Director
Mr. Rakesh KapoorIndependent Director
Mr. V BalasubramanianIndependent Director
Dr. Mallapa R DesaiIndependent Director
Mr. Deepchand B ShahIndependent Director
Mr. Hari Y AthawaleIndependent Director
Mr. Shripad S GangavatiIndependent Director
Mrs. Suneeta S ThakurIndependent Woman Director

Ugar Sugar Works Ltd. Share Price Update

Share PriceValue
Today₹83.50
Previous Day₹83.29

Basic Stock Data of Ugar Sugar Works Ltd

Market Cap 937 Cr.
Current Price 83.2
High / Low136/76.0
Stock P/E13.6
Book Value 15.2
Dividend Yield0.60 %
ROCE27.3 %
ROE60.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Ugar Sugar Works Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Simbhaoli Sugars Ltd 140 Cr. 34.038.0/17.8 41.10.00 %0.48 %% 10.0
Zuari Industries Ltd 933 Cr. 313355/104105 8610.32 %10.7 %11.4 % 10.0
Dalmia Bharat Sugar & Industries Ltd 3,287 Cr. 406490/31010.9 3630.97 %12.2 %9.73 % 2.00
Vishwaraj Sugar Industries Ltd 362 Cr. 19.322.3/13.1 14.30.51 %8.40 %8.71 % 2.00
Parvati Sweetners and Power Ltd 201 Cr. 13.517.5/4.70111 6.730.00 %3.82 %1.60 % 5.00
Industry Average327.8 Cr157.1645.38257.230.36%7.12%6.29%5.8

Ugar Sugar Works Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales191235320222253299363335256594608188234
Expenses194189296223246234335311253518503182254
Operating Profit-34624-176429243751056-20
OPM %-1%19%7%-0%3%22%8%7%1%13%17%3%-9%
Other Income1140011202224
Interest9101213111011141291399
Depreciation3333333345677
Profit before tax-143412-16-653169-126389-8-32
Tax %4%4%14%-7%7%3%6%33%-10%28%26%-20%-2%
Net Profit-143310-17-651156-134665-9-33
EPS in Rs-1.232.920.92-1.50-0.524.551.320.51-1.204.055.80-0.81-2.95

Ugar Sugar Works Ltd Quarterly Chart

Ugar Sugar Works Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6577186426528375856507508709561,1371,7941,624
Expenses5776506216317875216717008028881,0381,5861,458
Operating Profit806721215065-2150686899208166
OPM %12%9%3%3%6%11%-3%7%8%7%9%12%10%
Other Income261039839362610
Interest30293315293029384343444840
Depreciation25252615161519151412111825
Profit before tax2719-28-61528-665141946148112
Tax %38%10%-8%45%24%7%-3%21%1%8%7%31%
Net Profit1717-30-31126-68414174310368
EPS in Rs1.521.55-2.65-0.291.002.31-6.060.391.221.523.859.166.09
Dividend Payout %13%13%0%0%25%9%0%0%8%13%6%5%

Ugar Sugar Works Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%-276.47%90.00%466.67%136.36%-361.54%105.88%250.00%21.43%152.94%139.53%
Change in YoY Net Profit Growth (%)0.00%-276.47%366.47%376.67%-330.30%-497.90%467.42%144.12%-228.57%131.51%-13.41%

Ugar Sugar Works Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:23%
3 Years:27%
TTM:-10%
Compounded Profit Growth
10 Years:20%
5 Years:29%
3 Years:96%
TTM:31%
Stock Price CAGR
10 Years:25%
5 Years:41%
3 Years:75%
1 Year:-10%
Return on Equity
10 Years:13%
5 Years:41%
3 Years:48%
Last Year:61%

Ugar Sugar Works Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11111111111111111111111111
Reserves9010575728010234405268109208160
Borrowings285357246190278364474554514610700400225
Other Liabilities278181278376390140341278252202341295232
Total Liabilities6646546106497596178608838308921,162915628
Fixed Assets150172159170158164163152136127117222249
CWIP74123410131123833
Investments0266664444444
Other Assets507476444471592444691726689759929651343
Total Assets6646546106497596178608838308921,162915628

Ugar Sugar Works Ltd Reserves and Borrowings Chart

Ugar Sugar Works Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 53516475-38-1337-4645-7893394
Cash from Investing Activity -10-47-15-26-4-20-13-2-1-6-131-48
Cash from Financing Activity -3933-146-603844-1530-377939-346
Net Cash Flow3-103-10-4118-196-51-0

Ugar Sugar Works Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days177211262725145192838
Inventory Days35128325131822938140843233031433198
Days Payable134559717598818613496579640
Cash Conversion Cycle23523517515419438024831223927626396
Working Capital Days11213781507916611915214119216957
ROCE %15%11%1%3%14%14%-7%8%10%10%12%27%

Ugar Sugar Works Ltd Financial Efficiency Indicators Chart

Ugar Sugar Works Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters45.23%45.38%45.42%45.42%44.61%44.52%44.51%44.35%44.36%44.36%44.34%44.34%
FIIs0.00%0.00%0.00%0.03%0.18%0.31%0.44%0.91%0.67%2.26%3.62%2.57%
DIIs0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.04%0.04%0.00%0.02%0.00%
Public54.77%54.62%54.58%54.55%55.21%55.17%55.05%54.71%54.94%53.39%52.03%53.08%
No. of Shareholders29,74834,34136,94638,40249,01549,61848,47953,96153,65553,80258,98863,471

Ugar Sugar Works Ltd Shareholding Pattern Chart

No. of Ugar Sugar Works Ltd Shareholders

This stock is not held by any mutual fund

Ugar Sugar Works Ltd ROCE Trend

Ugar Sugar Works Ltd EPS Trend

Ugar Sugar Works Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)9.163.851.521.220.39
Diluted EPS (Rs.)9.163.851.521.220.39
Cash EPS (Rs.)10.774.872.622.451.76
Book Value[Excl.RevalReserv]/Share (Rs.)19.6310.827.155.764.55
Book Value[Incl.RevalReserv]/Share (Rs.)19.6310.827.165.764.55
Revenue From Operations / Share (Rs.)159.48101.1184.9377.3766.69
PBDIT / Share (Rs.)19.099.016.556.295.24
PBIT / Share (Rs.)17.497.995.445.073.87
PBT / Share (Rs.)13.194.121.651.240.48
Net Profit / Share (Rs.)9.163.851.521.220.38
NP After MI And SOA / Share (Rs.)9.163.851.521.220.38
PBDIT Margin (%)11.978.917.708.137.86
PBIT Margin (%)10.967.906.406.555.80
PBT Margin (%)8.274.071.941.590.72
Net Profit Margin (%)5.743.801.781.580.57
NP After MI And SOA Margin (%)5.743.801.781.580.57
Return on Networth / Equity (%)46.6635.5821.1821.228.49
Return on Capital Employeed (%)52.4334.7437.3344.6460.75
Return On Assets (%)11.243.721.901.650.49
Long Term Debt / Equity (X)0.631.020.870.740.00
Total Debt / Equity (X)1.575.256.336.407.99
Asset Turnover Ratio (%)1.731.111.110.000.00
Current Ratio (X)1.171.021.030.970.88
Quick Ratio (X)0.490.160.160.130.07
Inventory Turnover Ratio (X)1.631.401.270.000.00
Dividend Payout Ratio (NP) (%)2.725.196.590.000.00
Dividend Payout Ratio (CP) (%)2.324.103.810.000.00
Earning Retention Ratio (%)97.2894.8193.410.000.00
Cash Earning Retention Ratio (%)97.6895.9096.190.000.00
Interest Coverage Ratio (X)4.442.331.731.641.55
Interest Coverage Ratio (Post Tax) (X)3.132.001.401.321.11
Enterprise Value (Cr.)1367.191402.60698.81524.90582.84
EV / Net Operating Revenue (X)0.761.230.730.600.77
EV / EBITDA (X)6.3613.839.497.429.88
MarketCap / Net Operating Revenue (X)0.570.670.200.130.23
Retention Ratios (%)97.2794.8093.400.000.00
Price / BV (X)4.706.332.431.883.48
Price / Net Operating Revenue (X)0.570.670.200.130.23
EarningsYield0.090.050.080.110.02

Ugar Sugar Works Ltd Profitability Ratios (%)

Ugar Sugar Works Ltd Liquidity Ratios

Ugar Sugar Works Ltd Liquidity Ratios (%)

Ugar Sugar Works Ltd Interest Coverage Ratios (X)

Ugar Sugar Works Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ugar Sugar Works Ltd

Fair Value: ₹126.02

The stock is undervalued by 51.47% compared to the current price ₹83.2

*Investments are subject to market risks

Strength and Weakness of Ugar Sugar Works Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (563.08 cr) and profit (24.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.97 and average Dividend Yield of 7.52%.
  2. The stock has a low average ROCE of 9.83%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 121.25, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 233.92, which may not be favorable.
  5. The company has higher borrowings (399.77) compared to reserves (91.92), which may suggest financial risk.

Should I Buy Ugar Sugar Works Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ugar Sugar Works Ltd:
    1. Net Profit Margin: 5.74%
      • 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: 52.43% (Industry Average ROCE: 6.82%)
      • 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): 3.13
      • 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: 0.49
      • 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: 13.6 (Industry average Stock P/E: 6.65)
      • 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: 1.57
      • 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 Ugar Sugar Works 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