Davangere Sugar Company Limited (DAVANGERE) AI Stock Analysis

• Market Cap: ₹5.15B
• Dividend Yield: N/A
• Average Volume (3M): 385.59K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.82
• Revenue Growth: -10.78%
• EPS Growth: -4.71%
• Country: IN
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.02
• Shares Outstanding: 1,429,990,800
• 10 Day Avg. Volume: 249,334
• 30 Day Avg. Volume: 385,592
• PEG Ratio: <0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -4.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹4.00 ▼(-1.96% Downside)

The overall stock score is primarily influenced by the company's mixed financial performance and valuation concerns. While technical analysis indicates some positive momentum, the high P/E ratio and lack of dividend yield suggest caution. Financial challenges, particularly in cash flow and leverage, further weigh on the score.

Positive Factors

Diversified Product Portfolio

The company's diversified product portfolio, including by-products like molasses and bagasse, provides additional revenue streams and reduces dependency on sugar sales alone, enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships with local farmers and cooperatives improve operational efficiency and supply chain reliability, supporting sustainable business growth and competitive advantage.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, which are crucial for maintaining profitability in a volatile market.

Negative Factors

Revenue Decline

Inconsistent revenue growth reflects challenges in market demand or competitive pressures, potentially impacting long-term financial health and market position.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

Cash Flow Challenges

Cash flow challenges, including negative free cash flow growth, indicate potential liquidity issues, which could constrain operational capabilities and strategic initiatives.

Davangere Sugar Company Limited Business Overview & Revenue Model

Company Description

Davangere Sugar Company Limited (DAVANGERE) is a prominent player in the Indian sugar industry, primarily engaged in the production and marketing of sugar. The company operates within the agribusiness sector, focusing on sugarcane cultivation and processing. Its core products include various grades of sugar, which are supplied to both domestic and international markets. Additionally, DAVANGERE is involved in the production of by-products such as molasses and bagasse, contributing to its diversified portfolio.

How the Company Makes Money

Davangere Sugar Company generates revenue primarily through the sale of sugar, which constitutes its main source of income. The company benefits from the production of sugar from sugarcane, ensuring a steady supply chain and cost-effectiveness. In addition to sugar sales, DAVANGERE earns revenue from by-products like molasses, which are used in the production of alcohol and animal feed. Furthermore, the company may engage in export activities, providing an additional revenue stream. Strategic partnerships with local farmers and cooperatives enhance its operational efficiency, while favorable market conditions and pricing strategies significantly contribute to its overall earnings.

Davangere Sugar Company Limited Financial Statement Overview

Summary

Davangere Sugar Company Limited exhibits a mixed financial performance. The income statement shows stable gross profit margins but fluctuating net profit margins and inconsistent revenue growth. The balance sheet indicates high leverage with a high debt-to-equity ratio, posing financial risks. Cash flow analysis reveals challenges with negative free cash flow growth and operational inefficiencies.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin has been relatively stable, with a slight decrease in recent years. Net profit margin has fluctuated, indicating some instability in profitability. Revenue growth has been inconsistent, with significant fluctuations over the years. The EBIT and EBITDA margins have shown some resilience, but there is room for improvement.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has been high, indicating significant leverage, which poses a risk. Return on equity has been low, suggesting limited profitability from shareholders' investments. The equity ratio is moderate, reflecting a balanced asset structure but with potential risks due to high debt levels.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow growth and inconsistent operating cash flow. The operating cash flow to net income ratio has been volatile, reflecting operational inefficiencies. The free cash flow to net income ratio has also been unstable, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.93B	2.15B	2.17B	2.80B	1.10B	1.48B
Gross Profit	887.87M	858.48M	654.80M	1.10B	409.13M	489.20M
EBITDA	547.05M	519.81M	503.00M	558.05M	343.97M	286.00M
Net Income	113.01M	109.37M	122.40M	132.15M	56.80M	25.00M
Balance Sheet
Total Assets	0.00	7.43B	6.82B	5.97B	5.74B	4.39B
Cash, Cash Equivalents and Short-Term Investments	33.82M	33.82M	34.30M	33.15M	79.96M	170.30M
Total Debt	0.00	3.57B	3.11B	2.59B	3.13B	1.32B
Total Liabilities	-3.50B	3.93B	3.42B	2.85B	3.26B	1.93B
Stockholders Equity	3.50B	3.50B	3.40B	3.12B	2.47B	2.45B
Cash Flow
Free Cash Flow	0.00	-76.66M	-199.03M	313.10M	-1.52B	53.80M
Operating Cash Flow	0.00	-45.74M	24.76M	514.57M	-680.59M	55.10M
Investing Cash Flow	0.00	-31.52M	-228.89M	-201.48M	-854.14M	-9.30M
Financing Cash Flow	0.00	76.86M	191.54M	-652.46M	1.44B	58.00M

Davangere Sugar Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DAVANGERE, the sentiment is Positive. The current price of 4.08 is above the 20-day moving average (MA) of 3.74, above the 50-day MA of 3.74, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 69.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DAVANGERE.

Davangere Sugar Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMSUGAR	67 Neutral	₹2.54B	6.10	―	―	21.76%	113.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DAVANGERE	57 Neutral	₹5.15B	29.63	―	―	-10.78%	-4.71%
SAKHTISUG	56 Neutral	₹2.33B	8.62	―	―	1.70%	-71.32%
KCPSUGIND	52 Neutral	₹3.48B	-16.89	―	0.36%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹2.53B	20.77	―	―	-39.31%	-110.49%

Davangere Sugar Company Limited Corporate Events

Davangere Sugar’s 54th AGM Shows Strong Shareholder Support

Davangere Sugar Company Limited held its 54th Annual General Meeting on September 30, 2025, where the audited financial statements for the fiscal year ending March 31, 2025, were presented and adopted. The meeting’s voting results showed strong approval, with a high percentage of votes in favor of the resolutions, indicating robust shareholder support and confidence in the company’s financial health and management.