K.M. Sugar Mills Ltd. (KMSUGAR) AI Stock Analysis

• Market Cap: ₹2.27B
• Dividend Yield: N/A
• Average Volume (3M): 10.24K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.91
• Revenue Growth: 21.76%
• EPS Growth: 113.02%
• Country: IN
• Employees: 373
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 2.24
• Shares Outstanding: 92,000,170
• 10 Day Avg. Volume: 8,145
• 30 Day Avg. Volume: 10,242
• PEG Ratio: 0.27
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 15.94
• 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: 67 Neutral
• Price Target: ₹27.00 ▼(-2.77% Downside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

K.M. Sugar Mills Ltd. demonstrates strong financial performance, which is the most significant factor in its overall score. However, technical indicators suggest bearish momentum, which negatively impacts the stock's attractiveness. The valuation is favorable, but the lack of dividend yield is a minor drawback.

Positive Factors

Consistent Revenue Growth

Multi-year revenue expansion demonstrates durable demand and successful scaling of milling operations. This growth supports higher operating leverage, provides headroom for reinvestment in capacity or by-product monetization, and underpins longer-term cash generation and resilience.

Improving Profit Margins

Sustained margin improvement reflects better cost management and operational efficiency in processing and by-product capture. Higher and expanding margins create a buffer versus commodity price swings and allow stronger internal funding for maintenance, capex, or debt reduction over time.

Strong Cash Generation

Improved free cash flow and healthy cash conversion indicate robust ability to fund operations, capex, and debt servicing from internal sources. Reliable cash generation enhances financial flexibility and supports strategic choices like reinvestment or gradual deleveraging across cycles.

Negative Factors

Moderate Leverage

A moderate debt footprint raises sensitivity to interest-cost changes and limits balance sheet flexibility during down cycles. While currently manageable, sustained commodity volatility or weaker cash flow periods could constrain reinvestment or force prioritization of debt servicing over growth initiatives.

Limited Revenue Disclosure

Lack of granularity on revenue mix and offtake or customer concentration obscures counterparty and segment risks. This hinders assessment of price pass-through, dependency on large buyers, and stability of margins, increasing uncertainty about sustainable cash flows under stress.

Minimal Forward Guidance

Absence of forward guidance and limited investor communication reduces visibility into management's plans and near-term operational priorities. Over the medium term this can impede market confidence, complicate benchmarking of execution, and slow external scrutiny of strategic choices.

K.M. Sugar Mills Ltd. Business Overview & Revenue Model

Company Description

K.M. Sugar Mills Limited manufactures and trades in sugar and industrial alcohol in India. The company operates through three segments: Sugar, Distillery, and Co-generation. It produces and sells various grades of sugar in jute bags and PP bags; rectified spirit, sanitizers, ethanol, and extra neutral alcohol; and bio fertilizers under the name Moti Super. The company also generates and supplies power through its bagasse based co-generation power plant with a capacity of 25 MW located in Motinagar, Faizabad, as well as supplies country liquor in pet bottles. K.M. Sugar Mills Limited was founded in 1942 and is based in Faizabad, India.

How the Company Makes Money

K.M. Sugar Mills Ltd. makes money primarily by processing sugarcane into sugar and selling the finished sugar to wholesale/industrial buyers and other channels in the domestic market. Additional revenue typically comes from monetizing sugar-manufacturing by-products generated in the milling process (e.g., molasses and bagasse) through sale to downstream users, and from other allied activities connected to sugarcane processing; however, specific disclosure of KMSUGAR’s exact revenue mix, customer/contract structure, and segment-wise contributions is null. Information on significant partnerships, long-term offtake agreements, or material customer concentration for KMSUGAR is null.

K.M. Sugar Mills Ltd. Financial Statement Overview

Summary

K.M. Sugar Mills Ltd. shows strong financial performance with consistent revenue growth, improved profit margins, and robust cash flow generation. The balance sheet indicates moderate leverage, but overall financial management is effective.

Income Statement

K.M. Sugar Mills Ltd. has demonstrated consistent revenue growth over the past years, with a notable increase from INR 4,828.65 million in 2021 to INR 6,590.10 million in 2025. The gross profit margin has improved significantly, indicating efficient cost management. Furthermore, the net profit margin has shown an upward trend, reflecting strong profitability. The EBIT and EBITDA margins have also strengthened, suggesting robust operational performance.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been consistently positive, showcasing effective use of shareholders' funds to generate profits. However, the equity ratio reveals a moderate reliance on liabilities, which should be monitored to ensure financial stability.

Cash Flow

K.M. Sugar Mills Ltd. has achieved substantial growth in free cash flow, indicative of improved cash efficiency and potential for reinvestment or debt reduction. The operating cash flow to net income ratio is healthy, reflecting a strong cash conversion cycle. The free cash flow to net income ratio has also improved, confirming effective cash generation relative to net earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.02B	6.59B	6.57B	5.76B	5.48B	4.83B
Gross Profit	2.23B	2.12B	1.65B	1.28B	1.38B	1.12B
EBITDA	1.02B	890.60M	782.46M	610.58M	821.85M	589.95M
Net Income	472.90M	355.50M	280.93M	232.15M	414.69M	262.42M
Balance Sheet
Total Assets	4.70B	7.30B	7.79B	7.03B	6.43B	6.25B
Cash, Cash Equivalents and Short-Term Investments	143.80M	114.30M	75.37M	61.55M	89.40M	56.72M
Total Debt	669.50M	2.82B	2.91B	2.68B	2.24B	2.01B
Total Liabilities	1.08B	3.91B	4.76B	4.28B	3.90B	4.11B
Stockholders Equity	3.62B	3.39B	3.03B	2.75B	2.52B	2.13B
Cash Flow
Free Cash Flow	2.14B	159.60M	29.23M	-28.80M	-28.06M	-138.74M
Operating Cash Flow	2.54B	313.30M	287.61M	730.48M	53.21M	70.69M
Investing Cash Flow	-340.90M	-72.20M	-341.55M	-1.05B	-116.99M	-209.65M
Financing Cash Flow	-2.23B	-275.30M	68.06M	298.11M	93.97M	155.37M

K.M. Sugar Mills Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KMSUGAR, the sentiment is Negative. The current price of 27.77 is above the 20-day moving average (MA) of 25.11, above the 50-day MA of 25.39, and above the 200-day MA of 27.38, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 53.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KMSUGAR.

K.M. Sugar Mills Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PONNIERODE	68 Neutral	₹2.26B	5.98	―	1.13%	―	―
KMSUGAR	67 Neutral	₹2.27B	3.04	―	―	21.76%	113.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RAJSREESUG	53 Neutral	₹894.00M	-3.19	―	―	-27.56%	-734.03%
KOTARISUG	49 Neutral	₹1.95B	4.71	―	―	-39.31%	-110.49%
SAKHTISUG	45 Neutral	₹1.67B	-1.68	―	―	1.70%	-71.32%
PRUDMOULI	44 Neutral	₹414.12M	9.31	―	―	―	―

K.M. Sugar Mills Ltd. Corporate Events

K.M. Sugar Mills Chairman L.K. Jhunjhunwala Passes Away, Triggering Promoter-Group Change

K.M. Sugar Mills Ltd. has announced the death of its chairman, promoter and whole-time director, Shri Laxmikant Dwarkadas Jhunjhunwala, who passed away on March 14, 2026, in news the board described as an irreparable loss. The company has notified the exchanges that, pursuant to SEBI listing regulations, Jhunjhunwala will cease to be part of the promoter and promoter group, a change that formally alters the firm’s shareholding and governance structure and may prompt a leadership transition for stakeholders to monitor.

K.M. Sugar Mills Confirms SEBI Compliance on Dematerialisation for December Quarter

K.M. Sugar Mills Ltd. has notified the stock exchanges that it has received a confirmation certificate from its registrar and transfer agent, MUFG Intime India Private Limited, for the quarter ended 31 December 2025, affirming compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The registrar confirmed that securities submitted for dematerialisation during the quarter were duly processed, listed in line with existing securities, and that corresponding physical certificates were verified, cancelled, and updated in the company’s register of members within prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its share capital.