Magadh Sugar & Energy Ltd. (MAGADSUGAR) AI Stock Analysis

• Market Cap: ₹6.12B
• Dividend Yield: 2.49%
• Average Volume (3M): 434.00
• Price to Earnings (P/E): 7.4
• Beta (1Y): 2.09
• Revenue Growth: 8.96%
• EPS Growth: -19.55%
• Country: IN
• Employees: 1,174
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -7.35
• Shares Outstanding: 14,091,630
• 10 Day Avg. Volume: 502
• 30 Day Avg. Volume: 434
• PEG Ratio: -1.40
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -70.10
• 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: 63 Neutral
• Price Target: ₹463.00 ▼(-5.51% Downside)

The stock's overall score is driven by strong financial performance and attractive valuation, offset by weak technical indicators. The company's solid revenue growth and operational efficiency are significant strengths, but bearish market momentum and cash flow challenges present risks.

Positive Factors

Sustained Revenue Growth

Double-digit revenue growth indicates the company is expanding end-market penetration across sugar and allied products. Sustained top-line expansion supports higher capacity utilization, improves fixed-cost absorption in mills/distilleries, and underpins multi-year cash flow potential.

Business Diversification (Sugar, Ethanol, Power)

Revenue mix across sugar, ethanol and cogenerated power reduces reliance on a single commodity cycle. Ethanol sales tie to government blending policy, and cogeneration captures value from bagasse, increasing structural resilience and margin stability over 2–6 months and beyond.

Improved Operational Margins

Material gross and operating margins reflect effective cane-cost management and by-product monetization. Strong EBITDA suggests operational efficiencies that are likely durable if mill throughput and distillery utilization remain steady, supporting medium-term free cash generation potential.

Negative Factors

Negative Free Cash Flow

Persistently negative free cash flow limits the company's ability to self-fund capex, reduce debt, or return capital. Even with positive operating cash flow, negative FCF raises reliance on external financing and constrains strategic flexibility over the medium term.

Elevated Leverage

A debt-to-equity near 0.85 increases financial sensitivity to cyclical sugar margins and harvest variability. With capital needs for mills/distilleries, this leverage level can amplify refinancing risk and limit balance-sheet maneuverability if industry conditions or cash flows weaken.

Compression in Net Profit Margin

A falling net margin despite higher gross margins signals pressure from elevated operating expenses, finance costs, or taxes. This erosion reduces retained earnings and free cash conversion, weakening the firm's capacity to invest or deleverage across business cycles.

Magadh Sugar & Energy Ltd. Business Overview & Revenue Model

Company Description

Magadh Sugar & Energy Limited manufactures and sells of sugar and its by-products in India and internationally. The company operates through three segments: Sugar, Distillery, and Co-Generation. It also offers molasses, bagasse, and press-mud; manufactures and sells denatured spirits, including ethanol, as well as bio-compost; and generates and transmits power. The company was incorporated in 2015 and is headquartered in Kolkata, India.

How the Company Makes Money

MAGADSUGAR generates revenue primarily through the production and sale of sugar, which constitutes the bulk of its earnings. The company also benefits from the sale of by-products such as molasses and bagasse, which are utilized in making ethanol and generating electricity. Revenue is further supplemented by the sale of ethanol, particularly as demand increases for biofuels. Additionally, MAGADSUGAR engages in power generation from cogeneration plants, selling surplus electricity to the grid. The company may also have strategic partnerships with agricultural cooperatives and governmental agencies, enhancing its supply chain and market reach, contributing positively to its overall financial performance.

Magadh Sugar & Energy Ltd. Financial Statement Overview

Summary

Magadh Sugar & Energy Ltd. demonstrates strong revenue growth and operational efficiency, with a solid position in the industry. However, challenges in cash flow management and slightly higher leverage require attention.

Income Statement

Magadh Sugar & Energy Ltd. has shown a strong revenue growth of 20.56% in the latest year, driven by an increase in total revenue from the previous year. The company's gross profit margin improved to 31.57%, indicating efficient cost management. However, the net profit margin slightly decreased to 8.28%, suggesting higher expenses or tax impacts. EBIT and EBITDA margins are strong at 13.87% and 16.17%, respectively, reflecting healthy operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.85, indicating balanced leverage. The equity ratio is 49.38%, showing a stable capital structure with substantial equity backing. Return on Equity (ROE) is at 13.12%, reflecting effective utilization of equity to generate profits. While the balance sheet reflects stability, slightly higher leverage could pose risks if not managed properly.

Cash Flow

Magadh Sugar & Energy Ltd. has faced challenges in free cash flow, which remains negative at -130.67 million, though operating cash flow remains positive. The operating cash flow to net income ratio is 1.27, indicating strong cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting potential cash flow management issues that need addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.96B	13.22B	10.97B	9.50B	9.83B	9.28B
Gross Profit	3.97B	3.80B	3.53B	2.50B	2.16B	1.94B
EBITDA	1.98B	2.14B	2.15B	1.33B	1.27B	1.17B
Net Income	982.43M	1.09B	1.16B	502.62M	460.17M	270.81M
Balance Sheet
Total Assets	0.00	16.89B	16.11B	14.09B	13.48B	14.30B
Cash, Cash Equivalents and Short-Term Investments	1.14M	52.73M	2.56M	5.35M	13.23M	6.53M
Total Debt	0.00	7.07B	6.37B	5.83B	6.37B	6.32B
Total Liabilities	-8.34B	8.55B	8.65B	7.69B	7.50B	8.72B
Stockholders Equity	8.34B	8.34B	7.46B	6.39B	5.98B	5.58B
Cash Flow
Free Cash Flow	0.00	-130.66M	-165.67M	929.60M	401.61M	716.37M
Operating Cash Flow	0.00	1.39B	310.73M	1.15B	1.47B	1.25B
Investing Cash Flow	0.00	-1.50B	-429.92M	-208.63M	-1.06B	-524.35M
Financing Cash Flow	0.00	104.13M	119.46M	-940.24M	-411.59M	-729.37M

Magadh Sugar & Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 490.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MAGADSUGAR, the sentiment is Neutral. The current price of 490 is above the 20-day moving average (MA) of 448.52, above the 50-day MA of 477.54, and below the 200-day MA of 574.97, indicating a bearish trend. The MACD of -17.35 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MAGADSUGAR.

Magadh Sugar & Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTTAMSUGAR	64 Neutral	₹8.26B	7.34	―	0.95%	19.83%	46.44%
MAGADSUGAR	63 Neutral	₹6.12B	7.42	―	2.49%	8.96%	-19.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVADHSUGAR	60 Neutral	₹6.65B	10.49	―	2.63%	4.95%	-26.77%
DHAMPURSUG	59 Neutral	₹7.52B	13.42	―	―	11.07%	-19.56%
KOTARISUG	49 Neutral	₹2.01B	-157.89	―	―	-39.31%	-110.49%
DWARKESH	46 Neutral	₹6.52B	43.30	―	1.34%	11.15%	―