MoneyWorks4Me

Check Before You Invest : Avadh Sugar & Energy Ltd

BSE: 540649 NSE: AVADHSUGAR ISIN: INE349W01017
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Avadh Sugar & Energy Ltd belong to?
Avadh Sugar & Energy Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Avadh Sugar & Energy Ltd a good quality company?
Avadh Sugar & Energy Ltd is a weak quality company, based on a inconsistent 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 Avadh Sugar & Energy Ltd undervalued or overvalued?
Avadh Sugar & Energy Ltd appears Undervalued, as its key valuation ratios are lower than 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 0-year
Historic Median
Price to Earnings - 28.55
Price to Book - 1.99
Price to Sales - 1.04
EV to EBITDA - 8.84
Q.4 Is Avadh Sugar & Energy Ltd a good buy now?
Avadh Sugar & Energy 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

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.

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

Q.1 Debt to Equity ratio of Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Avadh Sugar & Energy Ltd?

Q.1 Promoter shareholding and pledge status of Avadh Sugar & Energy Ltd?
Promoters hold 60.39% of the Avadh Sugar & Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Avadh Sugar & Energy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Avadh Sugar & Energy Ltd vs industry peers?
Avadh Sugar & Energy Ltd revenue CAGR is %, compared to the industry median CAGR of 1.12%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 1.1
Gross Profit Growth (%) - 15.3
Operating Profit Growth (%) - 14.6
Net Profit Growth (%) - 8.4
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.72
ROE (%) - 10.55
ROCE (%) - 14.83
Cash Conversion Cycle (days) - 38

Valuation & price assessment

Q.1 Stock return of Avadh Sugar & Energy Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 12.41% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 12.4% 3.7% 66.3%
Q.2 Valuation ratios of Avadh Sugar & Energy Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 28.55, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 28.55 -
Price to Book - 1.99 -
Price to Sales - 1.04 -
EV to EBITDA - 8.84 -

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