Rana Sugars Limited (RANASUG) AI Stock Analysis

• Market Cap: ₹1.67B
• Dividend Yield: N/A
• Average Volume (3M): 10.69K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 1.28
• Revenue Growth: 8.83%
• EPS Growth: 160.77%
• Country: IN
• Employees: 1,302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -0.92
• 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: 66 Neutral
• Price Target: ₹12.00 ▼(-3.85% Downside)

Rana Sugars Limited's stock score is primarily driven by its solid financial performance and attractive valuation. The company's stable balance sheet and efforts to improve cash flow are positive factors. However, the technical analysis indicates a bearish trend, which slightly offsets the strengths. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Integrated business model

Owning sugar milling, ethanol/distillery and cogeneration capabilities provides durable diversification across commodity cycles. It lets Rana monetize multiple streams (sugar, ethanol, power, by-products), improving per‑tonne economics, smoothing revenue volatility and boosting long‑term resilience.

Steady revenue growth

Mid‑single digit revenue growth reflects expanding volumes or realizations, creating a broader top‑line base to support margins and reinvestment. Sustained revenue increases over quarters underpin cash generation and capacity utilization, strengthening fundamentals over a 2–6 month horizon.

Reasonable leverage

A balanced debt‑to‑equity position and fair equity ratio signal financial flexibility to fund working capital and select capex without excessive refinancing risk. This steadier capital structure supports operations through seasonal cycles and preserves ability to pursue efficiency investments.

Negative Factors

Volatile operating cash flow

Declining and volatile operating cash flow reduces predictability of internal funding for capex and working capital, raising reliance on external financing in peak seasons. Even with occasional free cash flow improvement, variability constrains durable reinvestment and strategic flexibility.

Inconsistent net profit margins

Fluctuating net margins indicate inconsistent conversion of revenue to earnings, limiting earnings visibility and return on invested capital. Persistent margin inconsistency hampers the company's ability to sustainably fund growth, dividends, or build reserves against agricultural cycles.

Agricultural and regulatory exposure

Dependence on cane supply, recovery rates and government policies (pricing, ethanol allocation) is a structural risk that can cause multi‑period swings in volumes, realizations and working capital needs. Regulatory or crop shocks can materially and persistently affect earnings.

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

Rana Sugars Limited demonstrates solid financial health with steady revenue growth and acceptable leverage. Profitability metrics show room for improvement, but the company maintains a stable balance sheet. Cash flow management is a focus area, with recent efforts to improve free cash flow being notable.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 12.48
• 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:RANASUG, the sentiment is Negative. The current price of 12.48 is above the 20-day moving average (MA) of 11.38, above the 50-day MA of 12.29, and below the 200-day MA of 14.18, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	66 Neutral	₹1.67B	4.51	―	―	8.83%	160.77%
ASALCBR	66 Neutral	₹16.57B	18.37	―	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	―	―	―	6.20%	59.04%
BAJAJHIND	49 Neutral	₹20.53B	-12.24	―	―	-11.72%	-439.12%
RKDL	41 Neutral	₹492.72M	402.61	―	―	4.30%	-40.22%