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.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|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||-0.4||NA||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|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||-6.7||24||13.8||10.9||35.6||29.9||34||31.2|
|YoY Gr. Rt. %||-||-141.9%||NA||NA||NA||-42.6%||-21%||226.9%||-16.1%||13.9%||-|
|BVPS (₹) ⓘ||150.2||143.9||139.7||141.4||298.4||317.3||340.3||287.7||379.6||428.5||431.1|
|Adj Net Profit ⓘ||20.5||-8.6||-9.9||-5.7||20.6||11.9||9.4||30.6||25.7||29.3||27|
|Cash Flow from Ops. ⓘ||-9.3||8.9||10.5||6||35.2||50.5||-22.4||15.6||28.8||10.9||-|
|Debt/CF from Ops. ⓘ||-8.8||9.3||7.4||12.8||1.4||0.1||-1.6||1.3||0||0||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||4.1%||7.2%||46.2%||13.9%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||17||-6.8||-8.1||-4.7||10.9||4.5||3.3||11.3||9||8.4||7.3|
|Op. Profit Mgn % ⓘ||12.7||2.7||-3.4||1||15.2||10.7||10.6||13.4||11.8||12.3||9.8|
|Net Profit Mgn % ⓘ||9.6||-5.1||-6.2||-3.4||8.2||6||5.1||9.9||10||10.1||8.7|
|Debt to Equity ⓘ||0.6||0.7||0.7||0.6||0.2||0||0.1||0.1||0||0||-|
|Working Cap Days ⓘ||153||213||217||212||126||120||155||126||148||140||0|
|Cash Conv. Cycle ⓘ||75||124||127||112||73||55||82||76||95||87||0|
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%
|TTM EPS (₹)||31.2||-|
|TTM Sales (₹ Cr.)||308||-|
|BVPS (₹.) ⓘ||431.1||-|
|Reserves (₹ Cr.) ⓘ||362||-|
|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|
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 Honâ€™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 stakeholdersâ€™ 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 â€“ 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.
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