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Check Before You Invest : SBEC Sugar Ltd

BSE: 532102 NSE: ISIN: INE948G01019
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does SBEC Sugar Ltd belong to?
SBEC Sugar Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is SBEC Sugar Ltd a good quality company?
SBEC Sugar Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is SBEC Sugar Ltd undervalued or overvalued?
SBEC Sugar Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is SBEC Sugar Ltd a good buy now?
SBEC Sugar Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of SBEC Sugar Ltd?
SBEC Sugar Ltd revenue growth is -3.5% for FY-2025 , which is below its 5 year CAGR of 5.7% , indicating slower growth.
Q.2 Gross Profit margin of SBEC Sugar Ltd?
SBEC Sugar Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.9% for FY-2025 , which is in line with its 5 year median of 0.9% , indicating stable margins.
Q.3 Operating Profit Margin of SBEC Sugar Ltd?
SBEC Sugar Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.76% for FY-2025 , which is above its 5 year median of 3.67% indicating increasing margins.
Q.4 Net Profit Margin of SBEC Sugar Ltd?
SBEC Sugar Ltd Net Profit Margin is -1.9% for FY-2025 , is in line with with its 5 year median of -1.9%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 0.9 0.9
Operating Profit Margin 6.76 3.67
Net Profit Margin -1.9 -1.9
Q.5 Return on Asset of SBEC Sugar Ltd?
SBEC Sugar Ltd Return on Asset is -1.66%, which is in line with its 5 year historical median of -1.66%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of SBEC Sugar Ltd?
SBEC Sugar Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of SBEC Sugar Ltd?
SBEC Sugar Ltd Return on capital employed is 17.86% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of SBEC Sugar Ltd?
SBEC Sugar Ltd Cash conversion cycle is -134 days, below its historical median of -134 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.87 0.92
ROE - -
ROCE 17.86 3.42
Cash Conversion Cycle -134 days -134 days
Q.9 Debt to Equity ratio of SBEC Sugar Ltd?
SBEC Sugar Ltd Debt-to-Equity ratio is -3.02 , 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 SBEC Sugar Ltd?
SBEC Sugar Ltd Debt to cash flow from operations is 2.98 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SBEC Sugar Ltd?
Promoters hold 65.12% of the SBEC Sugar Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SBEC Sugar Ltd vs industry peers?
SBEC Sugar Ltd revenue CAGR is 5.69% , compared to the industry median CAGR of 2.84% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 621.1 885.7
Gross Profit 5.6 53.2
Operating Profit 42 68
Net Profit -12 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.87 0.88
ROE - 7.17
ROCE 17.86 9.31
Cash Conversion Cycle (days) -133.99 107

Valuation & price assessment

Q.1 Stock return of SBEC Sugar Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.4% 39.4% -5.8% -27.5%
Q.3 Valuation ratios of SBEC Sugar Ltd vs historical?
The current P/E is similar 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 - 0.00 20.55
Price to Book -1.12 -2.44 1.03
Price to Sales 0.25 0.22 0.56
EV to EBITDA 13.52 10.29 8.72

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