Ponni Sugars (Erode) Ltd. (IN:PONNIERODE)
:PONNIERODE
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Ponni Sugars (Erode) Ltd.
(PONNIERODE)
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Rating:68Neutral
Price Target:
₹334.00
▲(26.44% Upside)
Action:ReiteratedDate:03/05/26
The score is anchored by strong financial resilience (debt-free balance sheet) but held back by weaker FY2025 profitability and negative free cash flow. Technicals are supportive with positive momentum, and valuation is attractive with a low P/E and modest dividend yield.
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet with substantial equity provides durable financial resilience in a cyclical sugar industry. It gives the company flexibility to fund seasonal working capital, absorb commodity shocks, and pursue capex or modernization without immediate refinancing risk, supporting long-term stability.
Negative Factors
Sharp margin compression
A marked fall in gross and net margins signals either weaker pricing power or rising input costs (eg, cane procurement, energy). Persistently lower margins can erode profitability, reduce reinvestment capacity, and make recovery in ROE and cash flow more difficult absent structural cost or pricing fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet with substantial equity provides durable financial resilience in a cyclical sugar industry. It gives the company flexibility to fund seasonal working capital, absorb commodity shocks, and pursue capex or modernization without immediate refinancing risk, supporting long-term stability.
Read all positive factors
Ponni Sugars (Erode) Ltd. (PONNIERODE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.59B
Dividend Yield1.13%
Average Volume (3M)1.35K
Price to Earnings (P/E)6.0
Beta (1Y)0.91
Revenue Growth24.85%
EPS Growth-8.58%
CountryIN
Employees316
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)11.01
Shares Outstanding8,598,418
10 Day Avg. Volume446
30 Day Avg. Volume1,346
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.50
Price to Sales (P/S)0.74
P/FCF Ratio-15.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ponni Sugars (Erode) Ltd. Business Overview & Revenue Model
Company Description
Ponni Sugars (Erode) Limited engages in the manufacture and sale of sugar in India. It operates through two segments, Sugar and Cogeneration. The company also engages in the cogeneration of power. Ponni Sugars (Erode) Limited also exports its prod...
How the Company Makes Money
The company primarily makes money by processing sugarcane into saleable sugar and selling it to customers in wholesale/industrial and trade channels. Revenue is also generated from monetizing by-products produced during sugar manufacturing—such as...
Ponni Sugars (Erode) Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
86
Very Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.59B | 4.21B | 4.35B | 2.88B | 2.56B |
| Gross Profit | 670.70M | 597.20M | 1.36B | 460.20M | 751.40M | 234.60M |
| EBITDA | 358.10M | 262.20M | 606.00M | 555.50M | 424.10M | 365.30M |
| Net Income | 188.20M | 192.80M | 468.60M | 383.40M | 292.50M | 256.60M |
Balance Sheet | ||||||
| Total Assets | 5.88B | 5.80B | 6.05B | 5.15B | 4.19B | 3.76B |
| Cash, Cash Equivalents and Short-Term Investments | 426.90M | 260.30M | 405.80M | 314.50M | 95.40M | 223.40M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 519.80M | 478.10M | 528.20M | 616.20M | 501.50M | 495.80M |
| Stockholders Equity | 5.36B | 5.32B | 5.52B | 4.53B | 3.68B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 144.70M | -173.00M | 10.40M | 1.40M | -71.60M | 263.90M |
| Operating Cash Flow | 210.00M | 96.30M | 160.80M | 113.70M | 108.80M | 287.60M |
| Investing Cash Flow | -42.00M | -47.70M | -120.30M | 6.90M | -128.80M | 25.10M |
| Financing Cash Flow | -26.40M | -60.70M | -57.00M | -50.60M | -44.20M | -241.90M |
Ponni Sugars (Erode) Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹4.07B | 22.43 | ― | 4.69% | 7.97% | -62.11% | |
68 Neutral | ₹2.59B | 5.98 | ― | 1.13% | 24.85% | -8.58% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | ₹1.13B | -3.19 | ― | ― | -18.83% | -254.97% | |
52 Neutral | ₹2.98B | 10.94 | ― | 0.38% | -20.31% | -91.52% | |
52 Neutral | ₹2.19B | -1.68 | ― | ― | 1.47% | -86.13% | |
49 Neutral | ₹2.28B | 4.71 | ― | ― | -34.59% | -68.48% |
* Consumer Defensive Sector Average
IN:PONNIERODE
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Ponni Sugars (Erode) Ltd. Corporate Events
Ponni Sugars Seeks Shareholder Nod to Reappoint Managing Director via E-Voting
Feb 25, 2026
Ponni Sugars (Erode) Ltd. has issued a postal ballot notice to its shareholders seeking approval via special resolution for the reappointment of Mr. Ramanathan Narayanan as Managing Director, with voting to be conducted exclusively through remote ...
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.