Sakthi Sugars Limited (SAKHTISUG) AI Stock Analysis

• Market Cap: ₹2.76B
• Dividend Yield: N/A
• Average Volume (3M): 15.25K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.34
• Revenue Growth: -22.51%
• EPS Growth: -80.40%
• Country: IN
• Employees: 845
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Food Confectioners
• EPS (TTM): -0.09
• Shares Outstanding: 118,849,040
• 10 Day Avg. Volume: 22,686
• 30 Day Avg. Volume: 15,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹26.00
• Price Target Upside: 14.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹26.00 ▲(14.84% Upside)

The overall stock score of 57 reflects significant financial risks due to high leverage and inconsistent cash flow. However, the potential undervaluation indicated by a low P/E ratio provides some positive outlook. Technical indicators suggest a neutral market position, with no strong momentum in either direction.

Sakthi Sugars Limited Business Overview & Revenue Model

Company Description

Sakthi Sugars Limited (SAKHTISUG) is an Indian company primarily engaged in the manufacturing and sale of sugar and related products. It operates in various sectors, including sugar, power, distillery, and ethanol production. The company is known for its integrated operations, which span from sugarcane cultivation to the production of sugar, ethanol, and electricity, leveraging by-products to enhance value creation.

How the Company Makes Money

Sakthi Sugars Limited generates revenue through several key streams. The primary source of income is the sale of sugar, which is produced by processing sugarcane. In addition to sugar, the company also generates earnings from its distillery operations, which produce ethanol and other alcohol-based products. The production of ethanol is particularly significant due to its use as a biofuel, which is increasingly in demand. Furthermore, Sakthi Sugars Limited operates cogeneration power plants that utilize bagasse, a by-product of sugarcane, to produce electricity. This electricity is used for internal consumption, and any surplus is sold to the grid, contributing to the company’s revenue. Strategic partnerships with government and private entities to supply ethanol and electricity further bolster its financial performance.

Sakthi Sugars Limited Financial Statement Overview

Summary

Sakthi Sugars Limited exhibits a mixed financial picture with fluctuating revenues and profitability over the years. High leverage and negative equity are significant risks on the balance sheet, while cash flow generation has been inconsistent.

Income Statement

Sakthi Sugars Limited has shown fluctuating revenue trends over the years, highlighted by a revenue decline in 2025. The gross profit margin is modest, indicating some efficiency in production costs. However, net profit margin has been inconsistent, with a significant drop in net income in 2025. The EBITDA margin indicates some operational efficiency, but the declining EBIT margin suggests challenges in managing operating expenses effectively.

Balance Sheet

The company's balance sheet reveals high leverage, with a debt-to-equity ratio consistently elevated due to negative or low equity, which poses a risk. Stockholders' equity has improved recently but remains a concern. The equity ratio is low, emphasizing balance sheet risk. Return on equity shows volatility, reflecting inconsistent profitability and financial stability.

Cash Flow

Cash flow analysis indicates that Sakthi Sugars faces challenges in generating consistent free cash flow, with a significant drop in 2025. The operating cash flow to net income ratio shows volatility, highlighting fluctuations in cash generation relative to reported profits. The free cash flow to net income ratio is mixed, indicating potential cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.06B	9.29B	10.69B	10.54B	7.75B	6.26B
Gross Profit	2.81B	2.79B	3.14B	3.99B	1.16B	739.91M
EBITDA	2.44B	1.89B	3.11B	1.12B	993.26M	1.32B
Net Income	1.13B	799.71M	1.29B	4.18B	-1.50B	-1.16B
Balance Sheet
Total Assets	0.00	15.31B	15.48B	16.68B	18.12B	18.12B
Cash, Cash Equivalents and Short-Term Investments	35.86M	57.44M	63.23M	64.40M	172.67M	38.17M
Total Debt	0.00	7.84B	7.73B	8.52B	9.38B	9.18B
Total Liabilities	-1.48B	13.32B	14.30B	16.79B	22.41B	20.90B
Stockholders Equity	1.48B	1.99B	1.18B	-108.28M	-4.28B	-2.78B
Cash Flow
Free Cash Flow	0.00	-403.89M	1.01B	878.22M	304.63M	290.95M
Operating Cash Flow	0.00	-255.81M	1.14B	1.07B	365.45M	313.96M
Investing Cash Flow	0.00	180.09M	508.38M	1.21B	86.30M	1.36M
Financing Cash Flow	0.00	69.92M	-1.65B	-2.38B	-317.25M	-366.55M

Sakthi Sugars Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.64
• 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:SAKHTISUG, the sentiment is Positive. The current price of 22.64 is above the 20-day moving average (MA) of 22.24, below the 50-day MA of 23.90, and below the 200-day MA of 25.80, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SAKHTISUG.

Sakthi Sugars Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
DAVANGERE	62 Neutral	₹5.69B	13.72		―	-9.74%	133.31%
KCPSUGIND	60 Neutral	₹3.90B	25.06		0.58%	-16.94%	-122.97%
KOTARISUG	60 Neutral	₹2.68B	21.93		3.32%	-33.14%	10.36%
SAKHTISUG	57 Neutral	₹2.76B	12.86		―	-22.51%	-80.40%
PONNIERODE	―	₹2.54B	16.12		1.02%	―	―
RAJSREESUG	53 Neutral	₹1.48B	16.26		―	-30.06%	-207.41%