Davangere Sugar Company Limited (DAVANGERE) AI Stock Analysis

• Market Cap: ₹5.81B
• Dividend Yield: N/A
• Average Volume (3M): 385.59K
• Price to Earnings (P/E): 50.6
• Beta (1Y): 0.52
• 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 ▼(-9.50% Downside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

The score is held back primarily by weak and volatile cash flows and elevated leverage, despite supportive technical momentum with price above major moving averages. Valuation is a headwind given the high P/E and no dividend yield data.

Positive Factors

Margin resilience

Relatively stable gross margins and resilient EBIT/EBITDA margins imply the company maintains operational efficiencies or pricing power in processing. That underlying margin durability supports medium-term earnings stability and provides a cushion through commodity cycles, aiding longer-term cash generation.

Moderate equity backing

A moderate equity ratio indicates a balanced asset base and some shareholder capital buffer versus assets. This structural asset backing reduces outright insolvency risk versus highly asset-light peers and provides limited financial stability while management addresses leverage, helping sustain operations over the medium term.

By-product revenue potential

The business model inherently supports multiple revenue streams beyond sugar through by-products. Capturing value from molasses, bagasse and press mud can diversify income, improve margins and reduce sensitivity to sugar price swings, offering a durable lever to stabilize cash flow if deployed effectively.

Negative Factors

Elevated leverage

High leverage increases interest costs and reduces financial flexibility, limiting the firm's ability to invest in maintenance or growth capex. In a cyclical, input-exposed industry like sugar, elevated debt heightens bankruptcy and refinancing risk during downturns and constrains strategic responses over months to years.

Weak, volatile cash flows

Volatile operating cash flow and declining free cash flow undermine the company's capacity to service debt, fund capital needs, and build reserves. Persistent cash volatility raises refinancing and liquidity risk, limiting the firm's ability to execute strategic investments or respond to prolonged industry headwinds.

Inconsistent revenue and margins

Irregular revenue growth and margin swings make earnings unpredictable and impede steady ROE improvement. For a commodity-linked processor, this variability complicates planning, weakens investor confidence in sustainable profitability, and raises the probability of operational stress during adverse commodity cycles.

Davangere Sugar Company Limited Business Overview & Revenue Model

Company Description

Davangere Sugar Company Limited manufactures and markets sugar and molasses in India. The company engages in the co-generation of electricity; and production of ethanol products. It exports its products. In addition, the company is involved in the aviation and other businesses. Davangere Sugar Company Limited was incorporated in 1970 and is based in Bengaluru, India.

How the Company Makes Money

The company makes money primarily by processing sugarcane into sugar and selling the finished sugar into wholesale/industrial and other market channels; specific customer mix and pricing mechanisms are not available. A secondary source of revenue typically comes from monetizing by-products generated during sugar manufacturing (e.g., molasses, bagasse, and press mud), sold to downstream industries or used for further value-added processing; however, Davangere Sugar Company Limited’s exact by-product portfolio, volumes, and end-use (including any captive usage) are not available. If the company operates integrated facilities such as distilleries (for ethanol/industrial alcohol) or cogeneration plants (for electricity export), those can represent additional revenue streams, but whether DAVANGERE has these operations, and their contribution to earnings, is not available. Key factors that generally influence earnings in this business include sugarcane availability and cost, government policies affecting sugar and cane pricing, recovery rates, plant utilization, and realization from sugar and by-products; company-specific partnerships or long-term offtake arrangements are not available.

Davangere Sugar Company Limited Financial Statement Overview

Summary

Overall fundamentals are mixed: income statement metrics show uneven revenue and fluctuating net margins (Income Statement score 65), leverage is elevated with low ROE (Balance Sheet score 55), and cash generation is the weakest area with volatile operating cash flow and negative free cash flow growth (Cash Flow score 45).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.02B	2.15B	2.17B	2.80B	1.10B	1.48B
Gross Profit	965.56M	858.48M	654.80M	1.10B	409.13M	489.20M
EBITDA	555.94M	519.81M	503.00M	558.05M	343.97M	286.00M
Net Income	126.45M	109.37M	122.40M	132.15M	56.80M	25.00M
Balance Sheet
Total Assets	7.73B	7.43B	6.82B	5.97B	5.74B	4.39B
Cash, Cash Equivalents and Short-Term Investments	119.72M	33.82M	34.30M	33.15M	79.96M	170.30M
Total Debt	2.00B	3.57B	3.11B	2.59B	3.13B	1.32B
Total Liabilities	2.70B	3.93B	3.42B	2.85B	3.26B	1.93B
Stockholders Equity	5.03B	3.50B	3.40B	3.12B	2.47B	2.45B
Cash Flow
Free Cash Flow	-162.91M	-76.66M	-199.03M	313.10M	-1.52B	53.80M
Operating Cash Flow	-162.32M	-45.74M	24.76M	514.57M	-680.59M	55.10M
Investing Cash Flow	-2.29M	-31.52M	-228.89M	-201.48M	-854.14M	-9.30M
Financing Cash Flow	250.50M	76.86M	191.54M	-652.46M	1.44B	58.00M

Davangere Sugar Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.42
• 50DMA: Negative
• 100DMA: Negative
• 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 4.42 is above the 20-day moving average (MA) of 4.01, above the 50-day MA of 4.32, and above the 200-day MA of 3.79, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 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
PONNIERODE	68 Neutral	₹2.34B	5.98	―	1.13%	―	―
KMSUGAR	67 Neutral	₹2.36B	3.04	―	―	21.76%	113.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DAVANGERE	57 Neutral	₹5.81B	50.57	―	―	-10.78%	-4.71%
KCPSUGIND	52 Neutral	₹2.70B	10.94	―	0.38%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹1.96B	4.71	―	―	-39.31%	-110.49%
SAKHTISUG	45 Neutral	₹1.74B	-1.68	―	―	1.70%	-71.32%

Davangere Sugar Company Limited Corporate Events

Davangere Sugar Says Share Price Volatility Is Market-Driven, No Undisclosed Events

Davangere Sugar Company Limited has clarified to both BSE and the National Stock Exchange of India that the recent significant movement in its share price is not driven by any undisclosed corporate developments or price-sensitive information. The company stated that it is not aware of any events affecting its operations or performance that would warrant disclosure under SEBI’s Listing Obligations and Disclosure Requirements, attributing the price volatility instead to general market conditions, and reiterated its commitment to making timely regulatory disclosures as required.