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Check Before You Invest : Davangere Sugar Company Ltd

BSE: 543267 NSE: DAVANGERE ISIN: INE179G01029
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

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 10 year financial track record.
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.
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

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 1.2% , 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 with its 5 year median of 4.72%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 11.9 11.9
Operating Profit Margin 24.18 20.93
Net Profit Margin 5.09 4.72
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 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 historical median of 5.75%, indicating the business is making similar use of its shareholders capital.
Q.7 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 below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Davangere Sugar Company Ltd?
Davangere Sugar Company Ltd Cash conversion cycle is 216 days, above its historical median of 175 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.3 0.33
ROE 5.75 5.75
ROCE 8.97 8.97
Cash Conversion Cycle 216 days 175 days
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 with the industry average of 0.65 , 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

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)

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 2.84% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 215 885.7
Gross Profit 25.6 53.2
Operating Profit 52 68
Net Profit 11 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.3 0.88
ROE 5.75 7.17
ROCE 8.97 9.31
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 22.57% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 22.6% -17% -6.4%
Q.3 Valuation ratios of Davangere Sugar Company Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 62.25 66.43 20.55
Price to Book 1.51 2.87 1.03
Price to Sales 2.5 3.21 0.56
EV to EBITDA 13.77 19.95 8.72

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