KCP Sugar & Industries Corp. Ltd. (KCPSUGIND) AI Stock Analysis

• Market Cap: ₹2.58B
• Dividend Yield: 0.38%
• Average Volume (3M): 10.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -13.84%
• EPS Growth: -149.34%
• Country: IN
• Employees: 328
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.04
• Shares Outstanding: 113,385,050
• 10 Day Avg. Volume: 7,635
• 30 Day Avg. Volume: 10,843
• PEG Ratio: -0.36
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 8.88
• 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: 52 Neutral
• Price Target: ₹23.00 ▼(-10.68% Downside)

KCP Sugar & Industries Corp. Ltd. has a stable financial position with improving profitability, but technical indicators suggest a bearish trend. The stock's valuation is concerning due to a negative P/E ratio and low dividend yield. These factors contribute to a moderate overall score, with financial performance being the strongest aspect.

Positive Factors

Strong balance sheet

A healthy equity ratio and improving debt-to-equity reduce financial leverage and refinancing risk. This structural strength supports capital spending, working-capital needs and resilience through sugar-cycle volatility, enabling longer-term strategic investments and creditor confidence.

Robust free cash flow

Sustained free cash flow generation provides durable internal funding for capex, working capital and debt reduction. Strong cash conversion improves flexibility during commodity-price swings, supports consistent operations and enables funding of growth or shareholder returns without external financing.

Improving profitability

Rising net profit margins and better return on equity indicate improving cost control and pricing execution. Structurally higher profitability enhances ability to invest in efficiency, absorb input-cost shocks, and sustainably rebuild reserves after cyclical downturns in the sugar industry.

Negative Factors

Top-line contraction

Material negative revenue growth signals weakening demand or realization pressure which can erode scale economics and margin insulation. Over several months, continued top-line contraction limits reinvestment capacity and makes profits more sensitive to fixed costs and commodity swings.

Earnings volatility

A very large negative EPS change reflects volatile or impaired earnings power, reducing predictability of future profits. Persistent EPS volatility undermines reinvestment planning, credit metrics and shareholder returns, and complicates long-term capital allocation decisions.

Margin instability

Declining gross margins and volatile EBIT point to inconsistent cost control or pricing pressures—common in commodity-linked sugar operations. Structural margin instability hampers forecasting, weakens earned returns over cycles, and raises the risk that shortfalls persist absent operational fixes.

KCP Sugar & Industries Corp. Ltd. Business Overview & Revenue Model

Company Description

K.C.P. Sugar and Industries Corporation Limited, together with its subsidiaries, manufactures and sells sugar and related products in India and internationally. It also provides bio fertilizers; chemicals comprising industrial alcohol, carbon dioxide, and calcium lactate, as well as organic manure and mycorrhiza vam products; and rectified spirit, extra neutral alcohol, and ethanol. In addition, the company manufactures liquid–solid separation equipment for industrial and environmental applications; and offers research services related to agriculture. Further, it operates cogeneration plant in Vuyyuru, Krishna District, Andhra Pradesh. The company was incorporated in 1995 and is based in Chennai, India.

How the Company Makes Money

KCPSUGIND generates revenue primarily through the sale of sugar, which constitutes its main product offering. The company benefits from the pricing dynamics of the sugar market, which can fluctuate based on supply and demand factors, government policies, and international trade. In addition to sugar sales, KCPSUGIND earns income from the sale of by-products such as molasses, which is used in various industries including alcohol and animal feed production. The company's ethanol production also contributes significantly to its revenue, especially given the increasing demand for biofuels and government incentives for renewable energy sources. Furthermore, KCPSUGIND's cogeneration power plants produce electricity that is sold to the grid, adding another revenue stream. Partnerships with agricultural suppliers and distribution networks further enhance its market reach and operational efficiency, contributing positively to its financial performance.

KCP Sugar & Industries Corp. Ltd. Financial Statement Overview

Summary

KCP Sugar & Industries Corp. Ltd. shows a stable financial position with improving profitability and cash flow generation. Revenue growth is positive, but margin volatility and past leverage levels require careful management. The strong balance sheet and cash flow generation support operational and financial resilience.

Income Statement

The company demonstrates a positive trend with revenue growth, though the rate is inconsistent. The gross profit margin shows a decline from previous years, indicating potential cost increases or pricing pressure. Net profit margin has improved significantly, reflecting better cost management or pricing strategies. However, the EBIT margin remains volatile, suggesting fluctuating operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio shows an improving trend, reducing financial leverage. Return on equity has shown improvement, highlighting enhanced profitability relative to shareholder equity.

Cash Flow

Cash flow analysis reveals strong free cash flow generation, with a notable free cash flow growth rate. Operating cash flow to net income ratio indicates efficient cash flow management. However, fluctuations in free cash flow to net income ratio suggest potential inconsistencies in cash conversion or capital expenditure impacts.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.81B	3.10B	3.46B	2.89B	3.19B	3.29B
Gross Profit	443.28M	489.79M	835.83M	846.01M	920.21M	678.51M
EBITDA	70.93M	431.99M	959.39M	900.00M	300.33M	478.39M
Net Income	-205.76M	143.87M	661.60M	581.72M	35.77M	233.02M
Balance Sheet
Total Assets	0.00	6.19B	6.66B	6.28B	5.78B	6.43B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	1.10B	1.18B	938.36M	735.82M
Total Debt	0.00	993.23M	1.47B	1.84B	1.90B	2.70B
Total Liabilities	-4.50B	1.68B	2.27B	2.56B	2.62B	3.30B
Stockholders Equity	4.50B	4.50B	4.39B	3.72B	3.15B	3.13B
Cash Flow
Free Cash Flow	0.00	455.07M	356.28M	-26.02M	1.10B	6.58M
Operating Cash Flow	0.00	508.80M	424.60M	63.00M	1.14B	174.43M
Investing Cash Flow	0.00	-58.59M	-70.69M	337.31M	8.40M	-109.11M
Financing Cash Flow	0.00	-446.17M	-503.85M	-203.92M	-1.02B	-111.52M

KCP Sugar & Industries Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.75
• 50DMA: Negative
• 100DMA: Negative
• 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:KCPSUGIND, the sentiment is Negative. The current price of 25.75 is above the 20-day moving average (MA) of 23.95, above the 50-day MA of 25.50, and below the 200-day MA of 31.61, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 33.13 is Neutral, neither overbought nor oversold. The STOCH value of 39.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KCPSUGIND.

KCP Sugar & Industries Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAWANASUG	78 Outperform	₹3.20B	3.07	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PONNIERODE	56 Neutral	₹2.36B	9.10	―	1.13%	―	―
SAKHTISUG	56 Neutral	₹2.08B	7.51	―	―	1.70%	-71.32%
KCPSUGIND	52 Neutral	₹2.58B	-6.38	―	0.38%	-13.84%	-149.34%
RAJSREESUG	52 Neutral	₹1.01B	-3.32	―	―	-27.56%	-734.03%
KOTARISUG	49 Neutral	₹2.01B	-157.82	―	―	-39.31%	-110.49%

KCP Sugar & Industries Corp. Ltd. Corporate Events

KCP Sugar Releases Q2 Financial Results

KCP Sugar & Industries Corporation Ltd. announced the publication of its unaudited financial results for the second quarter ending September 30, 2025, in prominent newspapers. This disclosure aligns with regulatory requirements and demonstrates the company’s commitment to transparency, potentially impacting stakeholders’ perception and the company’s market position.

KCP Sugar & Industries Corp. Reports Q2 Financial Results

KCP Sugar & Industries Corporation Ltd. announced the approval of its unaudited standalone and consolidated financial results for the second quarter and half-year ending September 30, 2025, during a board meeting held via video conferencing. The company reported a total income of Rs. 13,732.93 lakhs for the standalone results and Rs. 15,548.51 lakhs for the consolidated results, with a profit before tax of Rs. 2,372.81 lakhs and Rs. 2,545.03 lakhs, respectively. The statutory auditors issued an unmodified audit report, indicating no significant issues with the financial statements, which may positively impact stakeholder confidence.