Sakthi Sugars Limited (SAKHTISUG) AI Stock Analysis

• Market Cap: ₹2.36B
• Dividend Yield: N/A
• Average Volume (3M): 8.42K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.22
• Revenue Growth: 1.70%
• EPS Growth: -71.32%
• Country: IN
• Employees: 845
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Food Confectioners
• EPS (TTM): -1.94
• Shares Outstanding: 118,849,040
• 10 Day Avg. Volume: 6,559
• 30 Day Avg. Volume: 8,422
• PEG Ratio: -0.08
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -6.33
• 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: 56 Neutral
• Price Target: ₹21.50 ▲(6.65% Upside)

Sakthi Sugars Limited's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's high leverage and inconsistent cash flow generation present significant risks. However, the stock's relatively low P/E ratio suggests potential undervaluation, providing some upside potential. The absence of earnings call data and corporate events limits further insights.

Sakthi Sugars Limited Business Overview & Revenue Model

Company Description

Sakthi Sugars Limited (SAKHTISUG) is a leading player in the sugar manufacturing sector in India, primarily engaged in the production of sugar, ethanol, and power generation. Established with a focus on sustainability and innovation, the company operates several sugar mills and distilleries, leveraging advanced technology to optimize production processes. In addition to sugar, Sakthi Sugars also produces by-products such as molasses and bagasse, which are utilized in various industries, enhancing the company's portfolio and market presence.

How the Company Makes Money

Sakthi Sugars generates revenue primarily through the sale of sugar, which is its core product. The company benefits from the growing demand for sugar in both domestic and international markets. Additionally, Sakthi Sugars earns income from the sale of ethanol, a renewable fuel used in blending with petrol, which has gained prominence due to government policies promoting biofuels. The production and sale of power generated from bagasse—a by-product of sugarcane processing—also contribute to the company's revenue streams. Furthermore, strategic partnerships with government and private entities for ethanol supply and power purchase agreements enhance its earnings potential, ensuring a diversified revenue model.

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. The company needs to address these challenges to improve financial stability and performance.

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	8.37B	9.29B	10.69B	10.67B	4.32B	6.26B
Gross Profit	3.15B	2.79B	3.14B	3.99B	-233.22M	739.91M
EBITDA	1.19B	1.89B	3.11B	5.18B	993.26M	1.32B
Net Income	209.73M	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	57.44M	57.44M	63.23M	55.45M	172.67M	38.17M
Total Debt	0.00	7.84B	7.73B	8.52B	9.38B	9.18B
Total Liabilities	-1.99B	13.32B	14.30B	16.79B	22.41B	20.90B
Stockholders Equity	1.99B	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: Negative
• Last Price: 20.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 20.16 is below the 20-day moving average (MA) of 20.57, below the 50-day MA of 21.43, and below the 200-day MA of 23.59, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAKHTISUG.

Sakthi Sugars Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KOTARISUG	60 Neutral	₹2.53B	20.77	―	―	-33.14%	10.36%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
SAKHTISUG	56 Neutral	₹2.36B	8.79	―	―	1.70%	-71.32%
DAVANGERE	56 Neutral	₹5.31B	33.10	―	―	-9.74%	-6.44%
RAJSREESUG	53 Neutral	₹1.26B	-4.20	―	―	-27.56%	-734.03%
KCPSUGIND	52 Neutral	₹3.48B	-16.89	―	0.34%	-16.94%	-122.97%

Sakthi Sugars Limited Corporate Events

Sakthi Sugars Announces Retirement of Independent Director

Sakthi Sugars Limited announced the retirement of Smt. Priya Bhansali, an Independent Director, who completed her second term of five consecutive years on September 30, 2025. This change in the board composition is part of the company’s compliance with SEBI’s Listing Obligations and Disclosure Requirements, potentially impacting its governance structure and stakeholder relations.