ScoreWhy is Davangere Sugar Company Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.85%
- Poor long term growth as Net Sales has grown by an annual rate of 6.84% and Operating profit at 15.12% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.65 times
2
The company has declared Negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 6.21%
- INTEREST(Q) At Rs 9.44 cr has Grown at 35.83%
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.47 times
3
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -4.45% over the previous quarter and currently hold 47.87% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
4
Below par performance in long term as well as near term
- Along with generating -33.84% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Davangere Sugar for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Davangere Sugar
9.05%
-0.74
45.98%
Sensex
-4.95%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.56%
EBIT Growth (5y)
16.91%
EBIT to Interest (avg)
1.40
Debt to EBITDA (avg)
5.27
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
0.36
Tax Ratio
22.57%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
6.99%
ROCE (avg)
5.83%
ROE (avg)
2.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
19
Price to Book Value
1.04
EV to EBIT
21.36
EV to EBITDA
15.78
EV to Capital Employed
1.02
EV to Sales
3.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.80%
ROE (Latest)
1.68%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET SALES(Q)
Highest at Rs 83.82 cr
-8What is not working for the Company
PAT(Latest six months)
At Rs 4.57 cr has Grown at -47.53%
PBDIT(Q)
Lowest at Rs 8.45 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 10.08%
PBT LESS OI(Q)
Lowest at Rs 0.74 cr.
Loading Valuation Snapshot...
Here's what is working for Davangere Sugar
Net Sales - Quarterly
At Rs 83.82 cr has Grown at 58.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 52.97 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 83.82 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Davangere Sugar
Profit After Tax (PAT) - Latest six months
At Rs 4.57 cr has Grown at -47.53%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 8.45 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 10.08%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.74 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
