Sakthi Sugars Limited (SAKHTISUG) AI Stock Analysis

• Market Cap: ₹1.67B
• Dividend Yield: N/A
• Average Volume (3M): 5.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 1.70%
• EPS Growth: -71.32%
• Country: IN
• Employees: 845
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Food Confectioners
• EPS (TTM): -2.88
• Shares Outstanding: 118,849,040
• 10 Day Avg. Volume: 5,413
• 30 Day Avg. Volume: 5,571
• 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: 45 Neutral
• Price Target: ₹13.50 ▼(-33.04% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily pressured by balance-sheet risk (high leverage/low equity) and inconsistent profitability/cash generation, reinforced by clearly bearish technicals (below key moving averages with negative MACD). Valuation does not provide a strong offset because the negative P/E suggests losses and dividend yield is unavailable.

Positive Factors

Integrated business model

The company’s vertical integration—sugar production plus cogeneration from bagasse and other residues—creates multiple durable revenue streams and lowers net energy costs. Captive power and by-product sales (molasses, bagasse) smooth cash flow and margins across seasonal cycles, supporting structural resilience over months.

Operational efficiency

Reported EBITDA-level efficiency implies the mills can convert throughput into operating earnings competitively. Sustained operational efficiency helps the business absorb commodity price swings and lowers breakeven, making profitability more durable when cane yields or sugar prices fluctuate over medium-term cycles.

Recent equity improvement

An improvement in shareholders’ equity reduces net leverage and improves solvency headroom versus prior periods. Even partial restoration of equity increases borrowing flexibility and lowers refinancing pressure, which materially supports medium-term ability to fund working capital and capital expenditures.

Negative Factors

High leverage

Elevated leverage and historically low or negative equity increase interest burden and refinancing risk. This constrains capital allocation, limits ability to invest in mill upgrades or expansion, and leaves the company vulnerable to rate rises or adverse operating shocks over the next several months, affecting solvency.

Inconsistent cash generation

Volatile and declining free cash flow undermines the company’s capacity to service debt, fund necessary maintenance capex, and smooth working capital through seasonal cycles. Reliance on inconsistent cash flows forces dependence on external financing or asset sales, raising structural liquidity risk.

Volatile revenue and profitability

Marked year-to-year swings in revenue and net income reflect exposure to cyclic crop yields, commodity sugar pricing and policy. Such volatility makes earnings less predictable, complicates long-term planning, and increases the probability of margin compression during adverse cycles, weakening durable credit and profitability profiles.

Sakthi Sugars Limited Business Overview & Revenue Model

Company Description

Sakthi Sugars Limited manufactures and sells sugar in India, Korea, Malaysia, the Philippines, Vietnam, the United Kingdom, and Saudi Arabia. It operates through Sugar, Industrial Alcohol, Soya Products, and Power segments. The company offers white and refined sugar; industrial alcohol, including rectified spirit, extra neutral alcohol/neutral spirit, and ethanol manufactured from molasses; sugar by-products, such as molasses, bagasse, and press mud; bio earth products for use as an organic fertilizer and soil improver; and soya products. It also operates three cogeneration power plants with a power generation capacity of 92 megawatts. The company was incorporated in 1961 and is headquartered in Coimbatore, India. Sakthi Sugars Limited is a subsidiary of ABT Investments (India) Private Limited.

How the Company Makes Money

Sakthi Sugars Limited primarily makes money by manufacturing and selling sugar produced from sugarcane procured from farmers and other suppliers in its catchment areas. A key additional revenue stream comes from monetizing co-products generated during sugar production: (1) molasses, which is sold as an industrial input (commonly to distilleries and chemical users) and can contribute meaningfully depending on pricing and demand; and (2) bagasse and other biomass residues, which are used as fuel in cogeneration to produce electricity. The company earns from power generation either by selling surplus electricity to the grid or by using it internally to reduce energy costs (the extent of external sale versus captive use depends on plant configuration and offtake arrangements; if not disclosed, specific proportions are null). Revenue and profitability are influenced by sugarcane availability and pricing, sugar realizations in domestic markets, government policies affecting sugar and cane pricing, and the demand and pricing for by-products such as molasses and power. Specific significant partnerships or long-term offtake contracts are null (not provided here).

Sakthi Sugars Limited Financial Statement Overview

Summary

Overall fundamentals are mixed: revenues and profitability have fluctuated with a notable net income decline in 2025, cash flow generation is inconsistent with a significant free cash flow drop in 2025, and the balance sheet is a key risk due to high leverage and low/negative equity despite some recent improvement.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.32B	9.29B	10.69B	10.67B	4.32B	6.26B
Gross Profit	3.31B	2.79B	3.14B	3.99B	-233.22M	739.91M
EBITDA	1.36B	1.89B	3.11B	5.18B	993.26M	1.32B
Net Income	268.91M	799.71M	1.29B	4.18B	-1.50B	-1.16B
Balance Sheet
Total Assets	14.96B	15.31B	15.48B	16.68B	18.12B	18.12B
Cash, Cash Equivalents and Short-Term Investments	76.49M	57.44M	63.23M	55.45M	172.67M	38.17M
Total Debt	8.35B	7.84B	7.73B	8.52B	9.38B	9.18B
Total Liabilities	13.20B	13.32B	14.30B	16.79B	22.41B	20.90B
Stockholders Equity	1.76B	1.99B	1.18B	-108.28M	-4.28B	-2.78B
Cash Flow
Free Cash Flow	-206.56M	-403.89M	1.01B	878.22M	304.63M	290.95M
Operating Cash Flow	-166.65M	-255.81M	1.14B	1.07B	365.45M	313.96M
Investing Cash Flow	-24.01M	180.09M	508.38M	1.21B	86.30M	1.36M
Financing Cash Flow	209.72M	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: Positive

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 above the 20-day moving average (MA) of 15.81, above the 50-day MA of 16.99, and below the 200-day MA of 20.97, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 8.54 is Positive, 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
PONNIERODE	68 Neutral	₹2.26B	5.98	―	1.13%	―	―
DAVANGERE	57 Neutral	₹5.71B	50.57	―	―	-10.78%	-4.71%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
RAJSREESUG	53 Neutral	₹894.00M	-3.19	―	―	-27.56%	-734.03%
KCPSUGIND	52 Neutral	₹2.60B	10.94	―	0.38%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹1.95B	4.71	―	―	-39.31%	-110.49%
SAKHTISUG	45 Neutral	₹1.67B	-1.68	―	―	1.70%	-71.32%

Sakthi Sugars Limited Corporate Events

Sakthi Sugars Confirms SEBI-Compliant Dematerialisation of Shares for Q3 FY2025

Sakthi Sugars Limited has certified that all securities submitted for dematerialisation during the quarter ended 31 December 2025 were duly processed, with certificates verified, mutilated, cancelled, and the depositories’ names entered as registered owners within prescribed timelines. The company further confirmed that all dematerialised securities continue to be listed on the same stock exchanges as the previously issued securities, underscoring its compliance with Regulation 74(5) of SEBI’s Depositories and Participants Regulations, 2018 and providing reassurance to investors and market participants regarding its adherence to regulatory and listing requirements.