PONNI SUGARS ERODE is ready to EXPLODE

4 Sep 2023

This is a NO BRAINER.
Beautiful multi year retest at support from 2013.
All you need here is Patience.
Further the company fundamentals are good too.

Debt Free
The Co. became a zero debt entity by end Q1 FY22, while temporary surplus funds are being parked in Bank FDs, pending capex spend on its ethanol project.

- Company is almost debt free.
- Stock is trading at 0.76 times its book value
- Company is expected to give good quarter
- Debtor days have improved from 45 to 19 days.
- Company's working capital requirements have reduced from 78 days to 54 days
- PE Ratio is 8.6 vs its sector PE ratio of 14
- Annual Revenue rose 52%, in the last year to Rs 450 Crores. Its sector's average revenue growth for the last fiscal year was 22%.
- Annual Net Profit rose 31% in the last year to Rs 38 Crores. Its sector's average net profit growth for the last fiscal year was 22.1%.
- Quarterly Revenue rose 16% YoY to Rs 107 Crores. Its sector's average revenue growth YoY for the quarter was 7%
- Quarterly Net profit rose 208% YoY to Rs 6 Crores. Its sector's average net profit growth YoY for the quarter was 11%.

Ponni Sugars (Erode) Limited is a sugar manufacturing company. It is an associate of Seshasayee Paper and Boards Limited. It has a sugar factory at Erode (Tamilnadu) having a capacity to crush 3500 tonnes of sugarcane per day and generate 19 MW of power.

Business Segments
Sugar (71% of revenue)
Power (12% of revenue)