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Davangere Sugar Company Limited (IN:DAVANGERE)
:DAVANGERE
India Market
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Davangere Sugar Company Limited (DAVANGERE) AI Stock Analysis

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IN:DAVANGERE

Davangere Sugar Company Limited

(DAVANGERE)

Rating:62Neutral
Price Target:
₹4.00
▲(0.50% Upside)
The overall stock score of 62 reflects a combination of mixed financial performance and strong technical indicators. The company's financial challenges, particularly in cash flow and leverage, are offset by positive market momentum. The reasonable valuation further supports the stock's potential, though the lack of dividend yield and overbought technical signals warrant caution.

Davangere Sugar Company Limited (DAVANGERE) vs. iShares MSCI India ETF (INDA)

Davangere Sugar Company Limited Business Overview & Revenue Model

Company DescriptionDavangere 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 MoneyDavangere 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
65
Positive
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
55
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.15B2.15B2.17B2.80B1.10B1.45B
Gross Profit884.21M858.48M654.80M1.10B409.13M456.40M
EBITDA526.73M519.81M503.00M558.05M343.97M286.00M
Net Income109.37M109.37M122.40M132.15M56.80M25.00M
Balance Sheet
Total Assets7.43B7.43B6.82B5.97B5.74B4.39B
Cash, Cash Equivalents and Short-Term Investments33.82M33.82M34.30M33.15M79.96M170.30M
Total Debt3.57B3.57B3.11B2.59B3.13B1.32B
Total Liabilities3.93B3.93B3.42B2.85B3.26B1.93B
Stockholders Equity3.50B3.50B3.40B3.12B2.47B2.45B
Cash Flow
Free Cash Flow0.00-76.66M-199.03M313.10M-1.52B53.80M
Operating Cash Flow0.00-45.74M24.76M514.57M-680.59M55.10M
Investing Cash Flow0.00-31.52M-228.89M-201.48M-854.14M-9.30M
Financing Cash Flow0.0076.86M191.54M-652.46M1.44B58.00M

Davangere Sugar Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.98
Price Trends
50DMA
3.36
Positive
100DMA
3.50
Positive
200DMA
4.33
Negative
Market Momentum
MACD
0.13
Negative
RSI
77.25
Negative
STOCH
78.69
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 3.98 is above the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.36, and below the 200-day MA of 4.33, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 77.25 is Negative, neither overbought nor oversold. The STOCH value of 78.69 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹2.69B6.47
21.24%81.80%
62
Neutral
₹5.69B13.72
-9.74%133.31%
60
Neutral
₹3.90B25.06
0.58%-16.94%-122.97%
60
Neutral
₹2.68B21.93
3.32%-33.14%10.36%
57
Neutral
$3.18B7.69-34.32%3.09%-25.56%-353.61%
₹2.54B16.12
1.02%
57
Neutral
₹2.76B12.86
-22.51%-80.40%
* Consumer Goods Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:DAVANGERE
Davangere Sugar Company Limited
3.98
-3.01
-43.06%
IN:KCPSUGIND
KCP Sugar & Industries Corp. Ltd.
33.81
-26.05
-43.52%
IN:KMSUGAR
K.M. Sugar Mills Ltd.
28.65
-10.33
-26.50%
IN:KOTARISUG
Kothari Sugars & Chemicals Ltd.
32.29
-23.48
-42.10%
IN:PONNIERODE
Ponni Sugars (Erode) Ltd.
298.45
-166.62
-35.83%
IN:SAKHTISUG
Sakthi Sugars Limited
22.64
-15.18
-40.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025