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INVESTMENT INSIGHTS

Check Before You Invest : Ponni Sugars (Erode) Ltd

BSE: 532460 NSE: PONNIERODE ISIN: INE838E01017
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Ponni Sugars (Erode) Ltd belong to?
Ponni Sugars (Erode) Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Ponni Sugars (Erode) Ltd a good quality company?
Ponni Sugars (Erode) Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Ponni Sugars (Erode) Ltd undervalued or overvalued?
Ponni Sugars (Erode) Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Ponni Sugars (Erode) Ltd a good buy now?
Ponni Sugars (Erode) 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 Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd revenue growth is -14.7% for FY-2025 , which is below its 5 year CAGR of 3% , indicating slower growth.
Q.2 Gross Profit margin of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025 , which is below its 5 year median of 14% , indicating decreasing margins.
Q.3 Operating Profit Margin of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.29% for FY-2025 , which is below its 5 year median of 10.4% indicating decreasing margins.
Q.4 Net Profit Margin of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Net Profit Margin is 5.36% for FY-2025 , is below with its 5 year median of 10.01%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10.6 14
Operating Profit Margin 7.29 10.4
Net Profit Margin 5.36 10.01
Q.5 Return on Asset of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Return on Asset is 3.25%, which is below its 5 year historical median of 7.42%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Return on equity is 3.56% for FY-2025 , which is below its historical median of 8.94%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Return on capital employed is 5.18% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Cash conversion cycle is 119 days, above its historical median of 87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.61 0.74
ROE 3.56 8.94
ROCE 5.18 10.35
Cash Conversion Cycle 119 days 87 days
Q.9 Debt to Equity ratio of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.65 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ponni Sugars (Erode) Ltd?
Ponni Sugars (Erode) Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ponni Sugars (Erode) Ltd?
Promoters hold 47.34% of the Ponni Sugars (Erode) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ponni Sugars (Erode) Ltd vs industry peers?
Ponni Sugars (Erode) Ltd revenue CAGR is 2.97% , compared to the industry median CAGR of 2.84% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 359.5 885.7
Gross Profit 38.1 53.2
Operating Profit 26 68
Net Profit 19 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.61 0.88
ROE 3.56 7.17
ROCE 5.18 9.31
Cash Conversion Cycle (days) 118.53 107

Valuation & price assessment

Q.1 Stock return of Ponni Sugars (Erode) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.1% 12.8% -15.3% -10.1%
Q.3 Valuation ratios of Ponni Sugars (Erode) Ltd vs historical?
The current P/E is higher 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 9.41 4.64 20.55
Price to Book 0.45 0.43 1.03
Price to Sales 0.58 0.49 0.56
EV to EBITDA 5.08 3.88 8.72

Check more companies

1. E.I.D. Parry (I)
2. Balrampur Chini Mill
3. Triveni Engg. & Inds
4. Shree Renuka Sugar
5. Banna Amman Sugars
6. Bajaj Hindusthan Sug
7. Dalmia Bharat Sugar
8. M.V.K. Agro FoodProd
9. Godavari Biorefin
10. Avadh Sugar & Energy
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