Ponni Sugars (Erode) Ltd - Stock Valuation and Financial Performance

BSE: 532460 | NSE: PONNIERODE | Sugar | Small Cap

Ponni Sugars (Erode) Share Price

417.40 0.30 0.07%
as on 15-Apr'24 15:30

DeciZen - make an informed investing decision on Ponni Sugars (Erode)

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Ponni Sugars (Erode) stock performance -

mw4me loader
P/E Ratio (SA):
8.90
Market Cap:
357 Cr.
52-wk low:
344.1
52-wk high:
514.9

Is Ponni Sugars (Erode) Ltd an attractive stock to invest in?

1. Is Ponni Sugars (Erode) Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Ponni Sugars (Erode) Ltd is a average quality company.

2. Is Ponni Sugars (Erode) Ltd undervalued or overvalued?

The key valuation ratios of Ponni Sugars (Erode) Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Ponni Sugars (Erode) Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Ponni Sugars (Erode) Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Ponni Sugars (Erode):

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ponni Sugars (Erode) Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -1.9%-3.1%-0.8%9.5%4.5%3.9%10.9%8.8%8.4%10.6%-
Value Creation
Index
-1.1-1.2-1.1-0.3-0.7-0.7-0.2-0.4-0.4-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 169160169251196185310256288435449
Sales YoY Gr.--5.4%6.1%48.2%-21.9%-5.7%68%-17.5%12.5%51%-
Adj EPS -10-11.5-6.72413.810.935.629.93450.246.7
YoY Gr.-NANANA-42.6%-21%226.9%-16.1%13.9%47.4%-
BVPS (₹) 143.9139.7141.4298.4317.3340.3287.7379.6428.5526.6705.2
Adj Net
Profit
-8.6-9.9-5.720.611.99.430.625.729.343.140
Cash Flow from Ops. 8.910.5635.250.5-22.415.628.810.911.4-
Debt/CF from Ops. 9.37.412.81.40.1-1.61.3000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.1%17.3%11.9%51%
Adj EPS NA29.5%12.1%47.4%
BVPS15.5%10.7%22.3%22.9%
Share Price 13.2% 26.1% 37.7% -11.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-6.8-8.1-4.710.94.53.311.398.410.57.6
Op. Profit
Mgn %
2.7-3.4115.210.710.613.411.812.310.49.7
Net Profit
Mgn %
-5.1-6.2-3.48.265.19.91010.19.98.9
Debt to
Equity
0.70.70.60.200.10.1000-
Working Cap
Days
21321721212612015512614814011061
Cash Conv.
Cycle
1241271127355827695876142

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 11.93%

Net Profit is growing at healthy rate in last 3 years 12.11%

Sales growth is good in last 4 quarters at 16.62%

Return on Equity has declined versus last 3 years average to 7.60%

Latest Financials - Ponni Sugars (Erode) Ltd.

Standalone Consolidated
TTM EPS (₹) 46.7 -
TTM Sales (₹ Cr.) 449 -
BVPS (₹.) 705.2 -
Reserves (₹ Cr.) 598 -
P/BV 0.59 -
PE 8.90 -
From the Market
52 Week Low / High (₹) 344.05 / 514.90
All Time Low / High (₹) 2.05 / 581.00
Market Cap (₹ Cr.) 357
Equity (₹ Cr.) 8.6
Face Value (₹) 10
Industry PE 15.8

Management X-Ray of Ponni Sugars (Erode):

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Ponni Sugars (Erode)

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales169160169251196185310256288435
Operating Expenses 164165168213176165269226253397
Manufacturing Costs33302432344947334676
Material Costs11611612315912296199170181285
Employee Cost 12131414141416181921
Other Costs 45776576715
Operating Profit 4-5238202041303638
Operating Profit Margin (%) 2.7%-3.4%1.0%15.2%10.2%10.6%13.3%11.8%12.3%8.8%
Other Income 22213346717
Interest 7565233100
Depreciation 8666667768
Exceptional Items 5911-7-11-11000
Profit Before Tax -3-532241236293648
Tax 2-216045379
Profit After Tax -5-42163831262938
PAT Margin (%) -2.8%-2.3%1.1%6.3%1.7%4.6%10.0%10.0%10.1%8.8%
Adjusted EPS (₹)-5.6-4.22.218.53.99.836.029.834.044.6
Dividend Payout Ratio (%)-11%0%54%14%26%20%11%17%16%15%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 124120122257273293247326368453
Share Capital 9999999999
Reserves 115112113248264284239318360444
Minority Interest0000000000
Debt8177673823517000
Long Term Debt49424125004000
Short Term Debt3234261323514000
Trade Payables25322915373628363337
Others Liabilities 21203129172723141724
Total Liabilities 252249249338328391315376419515

Fixed Assets

Gross Block176176176177131131134136150164
Accumulated Depreciation42485459111725323846
Net Fixed Assets133128123118120114109104112118
CWIP 1000000041
Investments 21212114115616995151170225
Inventories72736049316438527183
Trade Receivables12152824183869414523
Cash Equivalents 1012141231032
Others Assets13121642235733
Total Assets 252249249338328391315376419515

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 91163551-2216291111
PBT -3-532241236293648
Adjustment 812101067631-7
Changes in Working Capital -04-7842-40-212-22-21
Tax Paid 400-5-2-1-6-5-5-8
Cash Flow From Investing Activity -3000-5213-131
Capex -4-10-1-7-1-3-2-18-11
Net Investments 0000000000
Others 11112345512
Cash Flow From Financing Activity -7-11-6-34-4623-19-24-4-5
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -7-5-6-5-2-3-3-100
Dividend Paid -2-10-1-3-1-2-3-4-5
Others 2-50-28-4228-15-2000
Net Cash Flow -1001-13-37-67
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-3.78-2.991.578.421.262.9811.468.948.429.34
ROCE (%)1.87-0.154.2910.691.975.0912.969.8110.3911.68
Asset Turnover Ratio0.680.660.710.90.590.510.880.740.730.93
PAT to CFO Conversion(x)N/AN/A32.1917-2.750.521.120.380.29
Working Capital Days
Receivable Days30294536395663795528
Inventory Days15316013876759460647865
Payable Days849090507713959686945

Ponni Sugars (Erode) Ltd Stock News

Ponni Sugars (Erode) Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Ponni Sugars (Erode) on 15-Apr-2024 15:30 is ₹417.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 15-Apr-2024 15:30 the market cap of Ponni Sugars (Erode) stood at ₹357.0.
The latest P/E ratio of Ponni Sugars (Erode) as of 15-Apr-2024 15:30 is 8.90.
The latest P/B ratio of Ponni Sugars (Erode) as of 15-Apr-2024 15:30 is 0.59.
The 52-week high of Ponni Sugars (Erode) is ₹514.9 and the 52-week low is ₹344.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Ponni Sugars (Erode) is ₹449.5 ( Cr.) .

About Ponni Sugars (Erode) Ltd

Ponni Sugars (Erode) Ltd was incorporated in 1996, it is an offspring of Ponni Sugars and Chemicals (PSCL) under a Demerger Scheme sanctioned by the Hon’ble High Court of Madras on September 10, 2001. In terms of the scheme, the company took over the business of Erode Undertaking with concurrent transfer of major part of stakeholders’ interest in PSCL to the company. Ponni Sugars is the brainchild of late S Viswanathan, a renowned industrialist of the South. The Erode sugar mill was set up with 1250 TCD capacity in 1984 in a record time of 12 months. It achieved full capacity crushing during the very first year of its commercial operation that enabled declaration of a maiden dividend of 10% in that very first year, a record in the annals of sugar industry. It was a trendsetter in mobilising surplus cane during its infancy stage from neighbouring sugar mills and extending crushing season to well above industry average. Its capacity was expanded to 2500 TCD in 1994.

The Erode sugar mill has successfully implemented an innovative Lift Irrigation Scheme by bringing in dry lands under cane cultivation, utilizing the effluent discharge of the neighbouring paper mill. This has helped secure multitudinal benefits – providing a dependable and perennial source of irrigation to farmers in the neighbourhood, increase of land value manifold in the region, transforming the livelihood of local rural population, resolving the raw material needs of sugar and paper mills and addressing ecological concerns in effluent discharge.

Right at its inception, Ponni was structured on the concept of total diversion of bagasse for paper. Accordingly it installed a coal fired boiler and later added a multi fuel boiler in place of conventional bagasse fired boilers. It has a bagasse tie up arrangement with Seshasayee Paper and Boards Ltd for a mutually beneficial and rewarding long term relationship.

Ponni is an efficient and quality producer of sugar, catering to both domestic and international markets. It is a venerable partner for villagers growing sugarcane in its neighbourhood. It enjoys cordial relationship with employees. It firmly believes in transparent and fair dealings with all its stakeholders by following sound corporate governance norms both in letter and spirit.

Other group companies:

  • Seshasayee Paper and Boards Limited
  • High Energy Batteries (India) Limited
  • SPB Projects and Consultancy Limited
  • Esvin Advanced Technologies Limited

Business area of the company:

  • The company is engaged in the manufacturing of sugar and its by products. It manufactures cane sugar, cane molasses and bagasse.

Major events:

  • 26-12-1996 - The company incorporated under the name SPB Sugars and Chemicals Limited 
  • 25-01-2000 - Name of the company changed to Ponni Sugars (Erode) Limited 
  • 10-09-2001 - Demerger Scheme for the transfer of Erode Undertaking of Ponni Sugars and Chemicals Ltd established in 1984 to the company effective 01.04.1999. Sanctioned by High Court of Madras.
  • 18-10-2001 - Completion date of Demerger Scheme which comes into effect from 01.04.1999. 

Achievements/ recognition:

  • ISO 9001:2000 for quality Management System Standard
  • ISO 14001:2004 Environmental Management System Standard
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