Davangere Sugar Company Limited (DAVANGERE) AI Stock Analysis

• Market Cap: ₹6.28B
• Dividend Yield: N/A
• Average Volume (3M): 385.59K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.71
• 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: 58 Neutral
• Price Target: ₹4.50 ▲(1.81% Upside)

The score is held back primarily by mixed financial performance—especially high leverage and weak/volatile cash flows—despite supportive technical momentum from an established uptrend. Valuation also weighs on the score due to a relatively high P/E and no dividend yield data.

Positive Factors

By-product diversification

Sales from molasses and bagasse provide non-sugar revenue streams that smooth cyclicality of sugar income. These by-products support downstream uses (alcohol, animal feed, cogeneration), enhancing long-term cash generation and margin resilience across harvest cycles.

Local farmer partnerships

Long-term tie-ups with farmers and cooperatives secure cane supply, lower procurement volatility and transaction costs, and support steady factory utilization. This structural sourcing advantage preserves margins and reduces raw-material risk over multiple seasons.

Stable gross and resilient EBITDA margins

A stable gross margin and resilient EBIT/EBITDA suggest durable operational economics in core processing. This indicates the company can maintain basic profitability despite revenue swings, aiding long-term coverage of fixed costs and supporting reinvestment capacity.

Negative Factors

Elevated leverage

Sustained high leverage increases interest and refinancing risk, reducing financial flexibility to invest or absorbe commodity price shocks. Over time, elevated debt limits strategic options and can force cost-cutting or asset sales during weaker sugar cycles, pressuring growth.

Weak and volatile cash flows

Inconsistent operating cash flow and negative FCF trends undermine the company's ability to fund capex, service debt, or build reserves. Over months, this reduces resilience to price cycles and limits capacity for strategic investments or steady shareholder returns.

Inconsistent revenue and net margins

Volatile top-line and net margins reflect exposure to cyclical sugar prices and operational variability. This instability hampers forecasting, weakens return metrics and makes sustaining profitability and deleveraging plans more difficult across multi-quarter horizons.

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: 4.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.87, above the 50-day MA of 3.84, and above the 200-day MA of 3.65, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, 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	₹2.52B	5.33	―	―	21.76%	113.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DAVANGERE	58 Neutral	₹6.28B	36.13	―	―	-10.78%	-4.71%
PONNIERODE	56 Neutral	₹2.27B	12.04	―	1.13%	―	―
SAKHTISUG	56 Neutral	₹2.16B	8.04	―	―	1.70%	-71.32%
KCPSUGIND	52 Neutral	₹2.85B	-7.06	―	0.38%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹2.22B	-174.58	―	―	-39.31%	-110.49%

Davangere Sugar Company Limited Corporate Events

Davangere Sugar Announces Cessation of Internal Auditor

Davangere Sugar Company Limited has announced the cessation of M/s B. Gangadhara & Co as their internal auditor due to the unfortunate demise of its proprietor, Mr. B. Gangadhara, effective November 30, 2025. The board expressed deep appreciation for Mr. Gangadhara’s valuable contributions during his tenure, highlighting the impact of his guidance on the company’s operations. This change is disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements, indicating compliance with regulatory standards.

Davangere Sugar Announces Cessation of Internal Auditor

Davangere Sugar Company Limited has announced the cessation of its internal auditor, M/s B. Gangadhara & Co., effective November 30, 2025, due to the unfortunate demise of its proprietor, Mr. B. Gangadhara. The company expressed deep appreciation for Mr. Gangadhara’s valuable guidance and contributions during his tenure. This change in internal auditing may impact the company’s operational oversight and necessitate the appointment of a new auditor to ensure continued compliance and financial accuracy.