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

• Market Cap: ₹6.09B
• Dividend Yield: 2.49%
• Average Volume (3M): 434.00
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.89
• Revenue Growth: 8.96%
• EPS Growth: -19.55%
• Country: IN
• Employees: 1,174
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 17.80
• 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: ₹461.00 ▼(-5.92% Downside)
• Action: Downgraded Date: 11/13/25
• Date: Action: Downgraded 11/13/25

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

Revenue & Margin Trend

Magadh reported 20.56% revenue growth and higher gross margin (31.57%) with healthy EBIT (13.87%) and EBITDA (16.17%) margins. These sustained operational margins indicate efficiency and scalability, supporting reinvestment and resilience through commodity cycles over months.

Balanced Capital Structure

The company’s moderate leverage (D/E ~0.85), near-50% equity ratio and ROE of 13.12% reflect a stable capital base and effective equity utilization. This balance provides financial flexibility for capex or working capital in seasonally driven operations without excessive solvency risk.

Integrated Revenue Streams

Magadh’s integrated model—sugar, ethanol production, cogeneration and co‑product monetization—creates multiple cash channels. Structural diversification reduces reliance on a single commodity, allowing ethanol and power sales to offset sugar cyclicality and support medium‑term cash generation.

Negative Factors

Negative Free Cash Flow

Although operating cash flow is positive (OCF/net income ratio 1.27), persistent negative free cash flow (-130.67 million) constrains the firm’s ability to fund investments, service debt or build reserves. This can force external financing around seasonal working‑capital peaks.

Compressed Net Profitability

Net margin slipped to 8.28% even as gross margin improved, suggesting rising operating costs, taxes, or non‑operating charges. Lower net profitability reduces retained earnings and weakens the firm’s buffer against commodity downturns, impacting long‑term reinvestment capacity.

Policy & Supply Exposure

Magadh’s economics depend on sugarcane supply, regulated sugar sector rules and ethanol pricing/blending policies. These structural dependencies create persistent volume and pricing risk, complicating medium‑term forecasting and leaving margins exposed to policy shifts or poor harvests.

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

Magadh Sugar & Energy Ltd. primarily makes money by processing sugarcane into sugar and selling it to bulk buyers and institutional customers through domestic channels; sugar sales typically form a core revenue stream. A second major earnings driver is the sale of ethanol/industrial alcohol produced from sugarcane-derived feedstocks (such as molasses and related intermediates), which is sold to customers that include oil marketing companies and other industrial buyers where applicable; realizations are influenced by government blending programs and administered/contractual pricing structures. The company also monetizes sugar-mill co-products: molasses and bagasse generated during crushing are either sold as by-products or used internally—bagasse is commonly used as fuel for cogeneration to produce electricity and steam. Revenue can therefore also come from the sale of surplus power (where exported to the grid under applicable arrangements) and from selling other by-products (e.g., press mud) depending on operating decisions and market demand. Overall profitability is sensitive to sugarcane availability and cost, regulated aspects of the sugar sector, ethanol demand/pricing policy, and plant utilization across sugar, distillery, and cogeneration operations. Specific partner/customer names and the exact mix of revenue by segment are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.96B	13.22B	10.97B	9.50B	9.83B	9.28B
Gross Profit	3.53B	3.80B	3.53B	2.50B	2.16B	1.94B
EBITDA	1.79B	2.14B	2.15B	1.33B	1.27B	1.17B
Net Income	825.24M	1.09B	1.16B	502.62M	460.17M	270.81M
Balance Sheet
Total Assets	12.25B	16.89B	16.11B	14.09B	13.48B	14.30B
Cash, Cash Equivalents and Short-Term Investments	57.77M	52.73M	2.56M	5.35M	13.23M	6.53M
Total Debt	3.28B	7.07B	6.37B	5.83B	6.37B	6.32B
Total Liabilities	4.18B	8.55B	8.65B	7.69B	7.50B	8.72B
Stockholders Equity	8.06B	8.34B	7.46B	6.39B	5.98B	5.58B
Cash Flow
Free Cash Flow	4.18B	-130.66M	-165.67M	929.60M	401.61M	716.37M
Operating Cash Flow	4.59B	1.39B	310.73M	1.15B	1.47B	1.25B
Investing Cash Flow	-404.44M	-1.50B	-429.92M	-208.63M	-1.06B	-524.35M
Financing Cash Flow	-4.18B	104.13M	119.46M	-940.24M	-411.59M	-729.37M

Magadh Sugar & Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• 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 Negative. The current price of 490 is above the 20-day moving average (MA) of 442.58, above the 50-day MA of 444.24, and below the 200-day MA of 536.02, indicating a bearish trend. The MACD of -4.50 indicates Positive momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 16.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹7.87B	8.10	―	0.95%	19.83%	46.44%
MAGADSUGAR	63 Neutral	₹6.09B	7.06	―	2.49%	8.96%	-19.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVADHSUGAR	60 Neutral	₹8.51B	11.08	―	2.63%	4.95%	-26.77%
DHAMPURSUG	59 Neutral	₹7.74B	7.49	―	―	11.07%	-19.56%
DWARKESH	55 Neutral	₹6.98B	11.32	―	1.34%	11.15%	―
KOTARISUG	49 Neutral	₹1.94B	4.71	―	―	-39.31%	-110.49%