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Check Before You Invest : Mawana Sugars Ltd

BSE: 523371 NSE: MAWANASUG ISIN: INE636A01039
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Mawana Sugars Ltd belong to?
Mawana Sugars Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Mawana Sugars Ltd a good quality company?
Mawana Sugars Ltd is a average quality company, based on a somewhat consistent 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 Mawana Sugars Ltd undervalued or overvalued?
Mawana Sugars 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 11.64 8.42
Price to Book 0.82 0.92
Price to Sales 0.27 0.26
EV to EBITDA 7.51 5.42
Q.4 Is Mawana Sugars Ltd a good buy now?
Mawana Sugars 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 Mawana Sugars Ltd?
Mawana Sugars Ltd revenue growth is 8.2% for FY-2026, which is above its 5-year CAGR of 1.26%, indicating faster growth.

Q.2 Gross Profit margin of Mawana Sugars Ltd?
Mawana Sugars Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2026, which is below its 5-year median of 6.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Mawana Sugars Ltd?
Mawana Sugars Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.67% for FY-2026, which is in line with its 5-year median of 6.91% indicating stable margins.

Q.4 Net Profit Margin of Mawana Sugars Ltd?
Mawana Sugars Ltd Net Profit Margin is 2.35% for FY-2026, is in line with its 5-year median of 2.35%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.5 6.1
Operating Profit Margin (%) 6.67 6.91
Net Profit Margin (%) 2.35 2.35

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mawana Sugars Ltd?
Mawana Sugars Ltd Return on Asset is 3.32%, which is in line with its 5-year historical median of 3.32%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mawana Sugars Ltd?
Mawana Sugars Ltd Return on capital employed is 7.71% for FY-2026, which is below its 5-year historical median of 9.42%. 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 Mawana Sugars Ltd?
Mawana Sugars Ltd Return on equity is 7.22% for FY-2026, which is below its 5-year historical median of 8.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Mawana Sugars Ltd?
Mawana Sugars Ltd Cash conversion cycle is 168 days, in line with its 5-year historical median of 162 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.41 1.26
ROE (%) 7.22 8.22
ROCE (%) 7.71 9.42
Cash Conversion Cycle 168 days 162 days

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

Q.9 Debt to Equity ratio of Mawana Sugars Ltd?
Mawana Sugars Ltd Debt-to-Equity ratio is 0.80, 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 Mawana Sugars Ltd?
Mawana Sugars Ltd Debt to cash flow from operations is 5.54, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mawana Sugars Ltd?

Q.1 Promoter shareholding and pledge status of Mawana Sugars Ltd?
Promoters hold 63.49% of the Mawana Sugars Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mawana Sugars Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mawana Sugars Ltd vs industry peers?
Mawana Sugars Ltd revenue CAGR is 1.26%, compared to the industry median CAGR of 2.69%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.2 2.7
Gross Profit Growth (%) -16.5 0.5
Operating Profit Growth (%) -15.5 0.9
Net Profit Growth (%) -47.9 -3.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.41 0.87
ROE (%) 7.22 7
ROCE (%) 7.71 8.97
Cash Conversion Cycle (days) 168.2 120

Valuation & price assessment

Q.1 Stock return of Mawana Sugars Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
5.8% 1.7% 1.6% 13.3%
Q.2 Valuation ratios of Mawana Sugars Ltd vs historical?
The current P/E ratio of 11.64 is higher than its historical median of 8.42, 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 11.64 8.42 13.25
Price to Book 0.82 0.92 1.05
Price to Sales 0.27 0.26 0.65
EV to EBITDA 7.51 5.42 8.73

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