Rana Sugars Limited (RANASUG) AI Stock Analysis

• Market Cap: ₹1.82B
• Dividend Yield: N/A
• Average Volume (3M): 10.69K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 1.29
• Revenue Growth: 8.83%
• EPS Growth: 160.77%
• Country: IN
• Employees: 1,302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.83
• Shares Outstanding: 153,567,830
• 10 Day Avg. Volume: 14,769
• 30 Day Avg. Volume: 10,693
• PEG Ratio: 0.26
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 13.35
• 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: ₹13.00 ▲(4.17% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by moderate financial performance (steady growth and acceptable leverage, but uneven profitability and softer operating cash flow) and mixed technicals (better short-term trend but still below longer-term averages with a negative MACD). A low P/E improves the outlook on valuation.

Positive Factors

Integrated business model

Rana Sugars' integrated value chain — sugar, ethanol/distillery, cogeneration and by-products — provides structural diversification of revenues and margins. This reduces single-commodity exposure, supports utilization across seasons and can stabilize cash generation over a multi-quarter horizon.

Moderate revenue growth

Sustained revenue growth near ~7.7% indicates expanding core sales and market traction. Over 2-6 months this trend supports operating leverage, underpins gross margins and gives management room to invest in efficiencies or capacity without relying solely on one-time gains.

Balanced leverage

A reasonable debt-to-equity position reflects conservative financial structure, preserving borrowing headroom for seasonal working capital and capex needs. Balanced leverage reduces refinancing risk and supports stability across commodity cycles and cash-flow seasonality.

Negative Factors

Inconsistent net profit margins

Fluctuating net margins indicate variability in cost pass-through, recovery rates or product mix, reducing earnings predictability. For an agro-processor, this undermines retained earnings growth and limits consistent reinvestment or deleveraging across multiple quarters.

Declining operating cash flow

A recent decline in operating cash flow weakens liquidity buffers and raises reliance on external financing for seasonal working capital or capex. Over several months this can constrain operational flexibility and increase interest or refinancing exposure during peak cycles.

Volatile free cash flow

Volatility in free cash flow limits the company's ability to fund steady dividends, sustain capex or reduce debt predictably. This uneven cash conversion amplifies risks from margin swings and seasonal harvest timing, affecting strategic planning over a 2-6 month horizon.

Rana Sugars Limited Business Overview & Revenue Model

Company Description

Rana Sugars Limited engages in the manufacture of sugar, ethanol, and co-generation of power in India. It operates through three segments: Sugar Manufacturing, Ethanol Manufacturing, and Power Generation. The company offers sugar, molasses, and bagasse, as well as double refined white sulphurless sugar, plantation white sugar, raw sugar, and sugar from sugar beet. It also provides ethanol, liquor, and various grades of alcohol, such as rectified spirit and potable grade extra neutral alcohol. In addition, the company generates the power from bagasse and by-products of sugar. Further, it offers sugar beet pulp as cattle feed. The company was incorporated in 1991 and is headquartered in Chandigarh, India.

How the Company Makes Money

Rana Sugars Limited generates revenue primarily through the sale of sugar, which constitutes its core product offering. The company also earns significant income from the sale of by-products, including ethanol, which is produced from the molasses generated during sugar extraction. Additionally, RANASUG benefits from revenue streams associated with power generation, where it sells electricity produced from bagasse, a fibrous by-product of sugarcane. Strategic partnerships with various distributors and exporters enhance the company's market reach, contributing to its overall sales and profitability. Furthermore, favorable government policies supporting the sugar and renewable energy sectors play a crucial role in bolstering its revenue potential.

Rana Sugars Limited Financial Statement Overview

Summary

Moderate revenue growth and solid gross margins support results, and leverage appears balanced. However, net profit margins have been inconsistent and operating cash flow has declined recently, indicating profitability and cash-flow stability still need improvement.

Income Statement

Rana Sugars Limited shows a moderate revenue growth rate and solid gross profit margins. However, net profit margins have been inconsistent over the years, with a decline compared to prior years. The EBIT and EBITDA margins are stable but could improve to enhance overall profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating balanced leverage. The return on equity is modest, and the equity ratio suggests a fair level of financial stability. However, an increase in stockholders' equity would strengthen the balance sheet.

Cash Flow

Operating cash flow remains positive but has decreased recently, affecting the cash flow score. The free cash flow has shown improvement, although it remains volatile. The cash flow ratios indicate that the company is generating sufficient cash to cover net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.82B	17.13B	15.93B	16.27B	14.00B	12.22B
Gross Profit	3.40B	2.78B	3.35B	3.65B	1.97B	1.31B
EBITDA	970.47M	1.05B	962.79M	1.37B	1.66B	2.03B
Net Income	366.87M	343.83M	279.67M	633.96M	852.15M	1.58B
Balance Sheet
Total Assets	0.00	15.22B	15.03B	14.62B	12.90B	11.36B
Cash, Cash Equivalents and Short-Term Investments	540.27M	540.27M	305.61M	470.20M	330.01M	669.39M
Total Debt	0.00	4.07B	4.15B	3.83B	1.72B	1.60B
Total Liabilities	-5.75B	9.44B	9.63B	9.49B	8.41B	7.73B
Stockholders Equity	5.75B	5.75B	5.40B	5.12B	4.49B	3.63B
Cash Flow
Free Cash Flow	0.00	151.02M	-406.76M	-1.47B	-140.97M	832.31M
Operating Cash Flow	0.00	331.11M	442.80M	-837.87M	915.92M	1.45B
Investing Cash Flow	0.00	3.38M	-512.58M	-981.45M	-1.23B	-515.70M
Financing Cash Flow	0.00	-112.15M	83.97M	1.70B	-28.60M	-763.09M

Rana Sugars Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.48
• 50DMA: Positive
• 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:RANASUG, the sentiment is Positive. The current price of 12.48 is above the 20-day moving average (MA) of 11.15, above the 50-day MA of 11.53, and below the 200-day MA of 13.93, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RANASUG.

Rana Sugars Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RANASUG	67 Neutral	₹1.82B	3.78	―	―	8.83%	160.77%
ASALCBR	66 Neutral	₹14.53B	16.60	―	0.21%	16.02%	48.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DANGEE	51 Neutral	₹3.47B	58.99	―	―	6.20%	59.04%
BAJAJHIND	46 Neutral	₹22.25B	39.15	―	―	-11.72%	-439.12%
RKDL	41 Neutral	₹430.80M	724.38	―	―	4.30%	-40.22%