Ponni Sugars (Erode) Ltd Stock Analysis

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

BSE Share Price Aug 19, 18:03
248.35 -3.10 (-1.23%)

DeciZen - Make an Informed Decision on Ponni Sugars (Erode)

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

1. Quality

2. Valuation

Fair

3. Price Trend

Ponni Sugars (Erode) Price Chart

P/E Ratio (SA) :
8.06
Market Cap :
216.2 Cr.
52-wk low :
195.3
52-wk high :
324
Bole Toh?

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 below 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 Weak which suggest that the price of Ponni Sugars (Erode) Ltd is likely to Fall 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 not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 12.3%-1.9%-3.1%-0.8%9.5%4.5%3.9%10.9%8.8%8.4%-
Value Creation Index -0.1-1.1-1.2-1.1-0.3-0.7-0.7-0.2-0.4NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 212169160169251196185310256288308
YoY Gr. Rt. %--20.6%-5.4%6.1%48.2%-21.9%-5.7%68%-17.5%12.5%-
Adj EPS 23.8-10-11.5-6.72413.810.935.629.93431.2
YoY Gr. Rt. %--141.9%NANANA-42.6%-21%226.9%-16.1%13.9%-
BVPS (₹) 150.2143.9139.7141.4298.4317.3340.3287.7379.6428.5431.1
Adj Net Profit 20.5-8.6-9.9-5.720.611.99.430.625.729.327
Cash Flow from Ops. -9.38.910.5635.250.5-22.415.628.810.9-
Debt/CF from Ops. -8.89.37.412.81.40.1-1.61.300-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.5%2.8%16%12.5%
Adj EPS 4.1%7.2%46.2%13.9%
BVPS 12.47.5812.9
Share Price 3.2% 6.7% 34.1% -2.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 17-6.8-8.1-4.710.94.53.311.398.47.3
Op. Profit Mgn % 12.72.7-3.4115.210.710.613.411.812.39.8
Net Profit Mgn % 9.6-5.1-6.2-3.48.265.19.91010.18.7
Debt to Equity 0.60.70.70.60.200.10.100-
Working Cap Days 1532132172121261201551261481400
Cash Conv. Cycle 751241271127355827695870

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 15.98%

Net Profit is growing at healthy rate in last 3 years 46.18%

Sales growth is good in last 4 quarters at 18.77%

Return on Equity has declined versus last 3 years average to 7.30%

Latest Financials - Ponni Sugars (Erode) Ltd.

Standalone Consolidated
TTM EPS (₹) 31.2 -
TTM Sales (₹ Cr.) 308 -
BVPS (₹.) 431.1 -
Reserves (₹ Cr.) 362 -
P/BV 0.58 -
PE 8.06 -
From the Market
52 Week Low / High (₹) 195.30 / 323.95
All Time Low / High (₹) 2.05 / 418.25
Market Cap (₹ Cr.) 216
Equity (₹ Cr.) 8.6
Face Value (₹) 10
Industry PE 17.1

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

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Key Ratios of Ponni Sugars (Erode)

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

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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