Davangere Sugar Company Limited (DAVANGERE) AI Stock Analysis

• Market Cap: ₹5.42B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.92
• Revenue Growth: -9.74%
• EPS Growth: -6.44%
• Country: IN
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.01
• Shares Outstanding: 1,429,990,800
• 10 Day Avg. Volume: 3,508,645
• 30 Day Avg. Volume: 3,183,122
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹4.00
• Price Target Upside: 5.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹4.00 ▲(5.54% Upside)

The overall stock score of 55 reflects a company facing financial challenges, particularly in cash flow and leverage, which are significant risks. Technical analysis shows mixed signals, and the valuation suggests potential overvaluation. These factors combined indicate a cautious outlook for the stock.

Davangere Sugar Company Limited Business Overview & Revenue Model

Company Description

Davangere Sugar Company Limited (DAVANGERE) is a prominent player in the sugar manufacturing industry based in India. The company primarily engages in the production and sale of sugar, along with various by-products such as molasses and bagasse. Operating in the agricultural and food processing sectors, DAVANGERE also contributes to the renewable energy space through co-generation of power using bagasse, further diversifying its portfolio.

How the Company Makes Money

Davangere Sugar Company generates revenue primarily through the sale of sugar, which is its core product. The company produces sugar from sugarcane, sourcing raw materials from local farmers and optimizing production processes to enhance yield and quality. In addition to sugar sales, DAVANGERE earns income from the sale of by-products like molasses, which is used in the production of alcohol and animal feed, and bagasse, which is utilized for generating electricity. The company also capitalizes on its co-generation capabilities, selling surplus power to the grid, thereby creating an additional revenue stream. Strategic partnerships with local farmers and agricultural cooperatives help ensure a steady supply of sugarcane, while fluctuations in sugar prices and government policies on sugar production and exports can significantly impact its earnings.

Davangere Sugar Company Limited Financial Statement Overview

Summary

Davangere Sugar Company Limited exhibits a mixed financial performance. While there are strengths in certain profitability metrics, the company faces challenges with revenue consistency and high leverage. Cash flow issues further complicate the financial outlook, suggesting the need for strategic improvements to enhance stability and growth.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15B	2.15B	2.17B	2.80B	1.10B	1.45B
Gross Profit	884.21M	858.48M	654.80M	1.10B	409.13M	456.40M
EBITDA	526.73M	519.81M	503.00M	558.05M	343.97M	286.00M
Net Income	109.37M	109.37M	122.40M	132.15M	56.80M	25.00M
Balance Sheet
Total Assets	7.43B	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	3.57B	3.57B	3.11B	2.59B	3.13B	1.32B
Total Liabilities	3.93B	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: Neutral
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 3.79 is below the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.52, and below the 200-day MA of 4.16, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	₹2.52B	6.04	10.50%	―	21.24%	81.88%
KOTARISUG	60 Neutral	₹2.50B	20.50	3.60%	―	-33.14%	10.36%
DAVANGERE	55 Neutral	₹5.42B	32.59	―	―	-9.74%	-6.44%
KCPSUGIND	52 Neutral	₹3.55B	-17.24	3.20%	0.32%	-16.94%	-122.97%
SAKHTISUG	51 Neutral	₹2.49B	11.85	40.26%	―	-22.51%	-80.40%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%