Check Before You Invest : Magadh Sugar & Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does Magadh Sugar & Energy Ltd belong to?

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

Q.2 Is Magadh Sugar & Energy Ltd a good quality company?

Magadh Sugar & Energy Ltd is a average quality company, based on a somewhat consistent 9-year financial track record.

Q.3 Is Magadh Sugar & Energy Ltd undervalued or overvalued?

Magadh Sugar & Energy Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Magadh Sugar & Energy Ltd a good buy now?

Magadh 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

Q.1 Revenue growth of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd revenue growth is 20.6% for FY-2025, which is above its 5-year CAGR of 7.61%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Return on capital employed is 12.74% for FY-2025, which is above its 5-year historical median of 8.77%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Return on Asset is 6.5%, which is above its 5-year historical median of 3.6%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Return on equity is 13.86% for FY-2025, which is above its 5-year historical median of 8.12%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Cash conversion cycle is 171 days, in line with its 5-year historical median of 171 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	0.79	0.7
ROE	13.86	8.12
ROCE	12.74	8.77
Cash Conversion Cycle	171 days	171 days

Q.6 Gross Profit margin of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025, which is above its 5-year median of 10.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.95% for FY-2025, which is above its 5-year median of 13.73% indicating increasing margins.

Q.8 Net Profit Margin of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Net Profit Margin is 8.28% for FY-2025, is above with its 5-year median of 5.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.3	10.7
Operating Profit Margin	15.95	13.73
Net Profit Margin	8.28	5.27

Q.9 Debt to Equity ratio of Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Debt-to-Equity ratio is 0.85, 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 Magadh Sugar & Energy Ltd?

Magadh Sugar & Energy Ltd Debt to cash flow from operations is 5.08, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Magadh Sugar & Energy Ltd?

Promoters hold 61.02% of the Magadh Sugar & Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Magadh Sugar & Energy Ltd vs industry peers?

Magadh Sugar & Energy Ltd revenue CAGR is 7.61%, 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	20.6	3
Gross Profit Growth	-3.9	3
Operating Profit Growth	-0.5	0.6
Net Profit Growth	-6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.79	0.87
ROE	13.86	9.39
ROCE	12.74	8.97
Cash Conversion Cycle (days)	171.46	114

Valuation & price assessment

Q.1 Stock return of Magadh Sugar & Energy Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 23.59% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	23.6%	11.1%	-18.4%

Q.3 Valuation ratios of Magadh Sugar & Energy 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	8.65	9.74	13.25
Price to Book	0.9	0.88	1.05
Price to Sales	0.57	0.55	0.65
EV to EBITDA	5.73	8.15	8.73

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