Why is Ponni Sugars (Erode) Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
The company has declared Positive results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs 14.39 cr has Grown at 208.5% (vs previous 4Q average)
- PAT(Q) At Rs 8.42 cr has Grown at 71.0% (vs previous 4Q average)
- DEBTORS TURNOVER RATIO(HY) Highest at 18.91 times
3
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 11-May-26 and has generated -4.52% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
4
With ROE of 4.1, it has a Fair valuation with a 0.5 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.22%, its profits have risen by 22.3% ; the PEG ratio of the company is 0.5
5
Majority shareholders : Promoters
How much should you hold?
- Overall Portfolio exposure to Ponni Sug.Erode should be less than 10%
- Overall Portfolio exposure to Sugar should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ponni Sug.Erode for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Ponni Sug.Erode
19.02%
-0.31
29.50%
Sensex
-1.65%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
11.46%
EBIT Growth (5y)
7.09%
EBIT to Interest (avg)
25.59
Debt to EBITDA (avg)
0.41
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.74
Tax Ratio
46.14%
Dividend Payout Ratio
8.95%
Pledged Shares
0
Institutional Holding
9.51%
ROCE (avg)
5.85%
ROE (avg)
6.53%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
19
Price to Book Value
0.51
EV to EBIT
7.71
EV to EBITDA
5.67
EV to Capital Employed
0.47
EV to Sales
0.54
PEG Ratio
0.06
Dividend Yield
1.48%
ROCE (Latest)
4.75%
ROE (Latest)
5.27%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
12What is working for the Company
PAT(Latest six months)
At Rs 7.19 cr has Grown at 334.91%
NET SALES(9M)
At Rs 332.76 cr has Grown at 22.99%
DEBTORS TURNOVER RATIO(HY)
Highest at 18.91 times
-8What is not working for the Company
PBT LESS OI(Q)
At Rs -4.66 cr has Fallen at -177.2% (vs previous 4Q average
PAT(Q)
At Rs -1.23 cr has Fallen at -120.9% (vs previous 4Q average
NET SALES(Q)
At Rs 91.87 cr has Fallen at -11.4% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Ponni Sug.Erode
Debtors Turnover Ratio- Half Yearly
Highest at 18.91 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Ponni Sug.Erode
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -4.66 cr has Fallen at -177.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 6.04 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -1.23 cr has Fallen at -120.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 5.89 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 91.87 cr has Fallen at -11.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 103.75 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)