Check Before You Invest : Davangere Sugar Company Ltd

Q: Which industry/sub-sector does Davangere Sugar Company Ltd belong to?

Davangere Sugar Company Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.

Q: Is Davangere Sugar Company Ltd a good quality company?

Davangere Sugar Company Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Davangere Sugar Company Ltd undervalued or overvalued?

Davangere Sugar Company Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 71.67, Historic Median: 50.42. Price to Book, Current: 1.74, Historic Median: 1.93. Price to Sales, Current: 2.88, Historic Median: 2.61. EV to EBITDA, Current: 15.3, Historic Median: 14.36

Q: Is Davangere Sugar Company Ltd a good buy now?

Davangere Sugar Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd revenue growth is -0.7% for FY-2025, which is below its 5-year CAGR of 1.17%, indicating slower growth.

Q: Gross Profit margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is in line with its 5-year median of 11.9%, indicating stable margins.

Q: Operating Profit Margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.18% for FY-2025, which is above its 5-year median of 20.93% indicating increasing margins.

Q: Net Profit Margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Net Profit Margin is 5.09% for FY-2025, is above its 5-year median of 4.72%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.9, Historic Median: 11.9. Operating Profit Margin (%), Current: 24.18, Historic Median: 20.93. Net Profit Margin (%), Current: 5.09, Historic Median: 4.72

Q: Return on Asset of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Return on Asset is 1.54%, which is in line with its 5-year historical median of 1.54%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Return on capital employed is 8.97% for FY-2025, which is in line with its 5-year historical median of 8.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Davangere Sugar Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Davangere Sugar Company Ltd belong to?

Davangere Sugar Company Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.

Q.2 Is Davangere Sugar Company Ltd a good quality company?

Davangere Sugar Company Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Davangere Sugar Company Ltd undervalued or overvalued?

Davangere Sugar Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	71.67	50.42
Price to Book	1.74	1.93
Price to Sales	2.88	2.61
EV to EBITDA	15.3	14.36

Q.4 Is Davangere Sugar Company Ltd a good buy now?

Davangere Sugar Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd revenue growth is -0.7% for FY-2025, which is below its 5-year CAGR of 1.17%, indicating slower growth.

Q.2 Gross Profit margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is in line with its 5-year median of 11.9%, indicating stable margins.

Q.3 Operating Profit Margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.18% for FY-2025, which is above its 5-year median of 20.93% indicating increasing margins.

Q.4 Net Profit Margin of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Net Profit Margin is 5.09% for FY-2025, is above its 5-year median of 4.72%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.9	11.9
Operating Profit Margin (%)	24.18	20.93
Net Profit Margin (%)	5.09	4.72

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Return on Asset is 1.54%, which is in line with its 5-year historical median of 1.54%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Return on capital employed is 8.97% for FY-2025, which is in line with its 5-year historical median of 8.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Return on equity is 5.75% for FY-2025, which is in line with its 5-year historical median of 5.75%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Cash conversion cycle is 216 days, above its 5-year historical median of 175 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.3	0.33
ROE (%)	5.75	5.75
ROCE (%)	8.97	8.97
Cash Conversion Cycle	216 days	175 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Debt-to-Equity ratio is 1.39, which is above the industry average of 0.62, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Davangere Sugar Company Ltd?

Davangere Sugar Company Ltd Debt to cash flow from operations is -59.19, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Davangere Sugar Company Ltd?

Q.1 Promoter shareholding and pledge status of Davangere Sugar Company Ltd?

Promoters hold 41.78% of the Davangere Sugar Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Davangere Sugar Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Davangere Sugar Company Ltd vs industry peers?

Davangere Sugar Company Ltd revenue CAGR is 1.17%, compared to the industry median CAGR of 2.83%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-0.7	2.8
Gross Profit Growth (%)	-	3
Operating Profit Growth (%)	15.6	1.3
Net Profit Growth (%)	-8.3	0.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.3	0.87
ROE (%)	5.75	7
ROCE (%)	8.97	8.97
Cash Conversion Cycle (days)	215.92	107

Valuation & price assessment

Q.1 Stock return of Davangere Sugar Company Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 27.15% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	27.2%	-5%	16%

Q.2 Valuation ratios of Davangere Sugar Company Ltd vs historical?

The current P/E ratio of 71.67 is higher than its historical median of 50.42, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	71.67	50.42	13.25
Price to Book	1.74	1.93	1.05
Price to Sales	2.88	2.61	0.65
EV to EBITDA	15.3	14.36	8.73

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Check Before You Invest : Davangere Sugar Company Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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