Check Before You Invest : Rana Sugars Ltd

Snapshot

Q.1 Which industry/sub-sector does Rana Sugars Ltd belong to?

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

Q.2 Is Rana Sugars Ltd a good quality company?

Rana Sugars Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Rana Sugars Ltd undervalued or overvalued?

Rana Sugars Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Rana Sugars Ltd a good buy now?

Rana Sugars Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rana Sugars Ltd?

Rana Sugars Ltd revenue growth is 7.5% for FY-2025, which is above its 5-year CAGR of 5.46%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Rana Sugars Ltd?

Rana Sugars Ltd Return on capital employed is 8.15% for FY-2025, which is below its 5-year historical median of 13.83%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Rana Sugars Ltd?

Rana Sugars Ltd Return on Asset is 2.27%, which is below its 5-year historical median of 4.61%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Rana Sugars Ltd?

Rana Sugars Ltd Return on equity is 6.49% for FY-2025, which is below its 5-year historical median of 14.01%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Rana Sugars Ltd?

Rana Sugars Ltd Cash conversion cycle is 61 days, above its 5-year historical median of 39 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	1.13	1.13
ROE	6.49	14.01
ROCE	8.15	13.83
Cash Conversion Cycle	61 days	39 days

Q.6 Gross Profit margin of Rana Sugars Ltd?

Rana Sugars Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.2% for FY-2025, which is below its 5-year median of 7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Rana Sugars Ltd?

Rana Sugars Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.16% for FY-2025, which is below its 5-year median of 6.96% indicating decreasing margins.

Q.8 Net Profit Margin of Rana Sugars Ltd?

Rana Sugars Ltd Net Profit Margin is 2.01% for FY-2025, is below with its 5-year median of 3.9%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.2	7
Operating Profit Margin	4.16	6.96
Net Profit Margin	2.01	3.9

Q.9 Debt to Equity ratio of Rana Sugars Ltd?

Rana Sugars Ltd Debt-to-Equity ratio is 0.68, which is above with the industry average of 0.62, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rana Sugars Ltd?

Rana Sugars Ltd Debt to cash flow from operations is 7.12, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rana Sugars Ltd?

Promoters hold 22.64% of the Rana Sugars Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rana Sugars Ltd vs industry peers?

Rana Sugars Ltd revenue CAGR is 5.46%, compared to the industry median CAGR of 2.97%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.5	3
Gross Profit Growth	-1.4	3
Operating Profit Growth	-14.5	0.6
Net Profit Growth	21.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.13	0.87
ROE	6.49	9.39
ROCE	8.15	8.97
Cash Conversion Cycle (days)	60.74	114

Valuation & price assessment

Q.1 Stock return of Rana Sugars Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8.7%	0.3%	-15.9%	4.4%

Q.3 Valuation ratios of Rana Sugars Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	5.98	6.61	13.25
Price to Book	0.38	0.72	1.05
Price to Sales	0.12	0.22	0.65
EV to EBITDA	4.26	3.88	8.73

Check more companies

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5. Bajaj Hindusthan Sug

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10. Dhampur Sugar Mills

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