Sukhjit Starch & Chemicals Ltd. (SUKHJITS) AI Stock Analysis

• Market Cap: ₹5.20B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.22K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 1.35
• Revenue Growth: -5.05%
• EPS Growth: -57.82%
• Country: IN
• Employees: 1,262
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.00
• Shares Outstanding: 31,244,000
• 10 Day Avg. Volume: 747
• 30 Day Avg. Volume: 1,218
• PEG Ratio: -0.77
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 319.99
• 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: 62 Neutral
• Price Target: ₹176.00 ▼(-0.65% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed financial performance: improved leverage is outweighed by sharply declining margins and weak free cash flow. Technicals are supportive with the stock trading above major moving averages and positive momentum, but valuation is a headwind due to a high P/E and low dividend yield.

Positive Factors

B2B staple product exposure

Sukhjit operates in an essential agro-processing niche supplying starch and derivatives to food and industrial customers. This B2B, input-focused model creates durable baseline demand across end markets, reducing revenue volatility and supporting steady order books over months.

Improved leverage

A lower debt-to-equity ratio strengthens financial flexibility, lowering interest burden and refinancing risk. Over a multi-month horizon this provides capacity to fund working capital or selective investment without materially increasing default risk, supporting operational continuity.

Stable top-line trend

Consistent, if modest, revenue growth shows underlying demand resilience for starch products. Sustained top-line expansion helps absorb fixed costs and supports capacity utilization, which can stabilize margins and operational planning across the next several quarters.

Negative Factors

Sharp margin compression

Significant margin erosion points to persistent cost pressures or weakened pricing power versus raw-material inflation. Reduced gross and net margins materially limit the company's ability to invest, build buffers, or improve returns, constraining profitability for multiple quarters.

Free cash flow deterioration

A steep drop in free cash flow and weaker conversion of income into cash undermines liquidity and financial flexibility. Over the medium term this raises reliance on external funding, limits capacity for capex or dividends, and increases vulnerability to working-capital shocks.

Declining return on equity

A falling ROE signals the company is generating lower returns from shareholders' capital, reflecting weaker profitability and operational efficiency. Coupled with sharp EPS contraction noted in fundamentals, this trend pressures long-term shareholder value creation and reinvestment capacity.

Sukhjit Starch & Chemicals Ltd. Business Overview & Revenue Model

Company Description

The Sukhjit Starch & Chemicals Limited manufactures and distributes starch and its derivatives in India. It operates through four segments: Starch & Its Derivatives, Readymade Garments, Leasing & Hire Purchase Financing, and Manufacturing of Heavy Machinery. The company offers maize starch, monohydrate dextrose, sorbitol, anhydrous dextrose, liquid glucose, high maltose syrup, malto dextrin powder, modified starch, maize gluten, maize germ, maize oil, and maize bran. Its products are used in various industries, such as food, tobacco conditioning, injection, paper manufacturing, pharmaceuticals, bread manufacturing, cattle feed, poultry, swine and pet food, and industrial applications. The Sukhjit Starch & Chemicals Limited was founded in 1943 and is based in Phagwara, India.

How the Company Makes Money

The company primarily makes money by manufacturing and selling starch and starch-derived products to business customers (B2B) across end-use industries. Revenue is generated from (i) sales of native starch and modified/derivative starch products used as functional ingredients and processing aids, and (ii) sales of related chemicals/co-products produced alongside starch processing that are sold to industrial buyers. Earnings are driven mainly by sales volumes and realized pricing for these products, which are influenced by raw-material costs (agricultural inputs), conversion yields, plant utilization, and demand from downstream industrial customers. Specific details on product-wise revenue mix, key customer contracts, and significant partnerships are null.

Sukhjit Starch & Chemicals Ltd. Financial Statement Overview

Summary

Moderate revenue growth (latest year +3.63%) is offset by materially weaker profitability: gross margin fell from 17.68% to 8.72% and net margin from 3.63% to 2.67%. Balance sheet leverage improved (debt-to-equity 0.67 to 0.55), but cash flow is a key risk with free cash flow growth at -102.88% and weaker conversion of earnings into cash.

Income Statement

Sukhjit Starch & Chemicals Ltd. has shown moderate revenue growth with a 3.63% increase in the latest year, although this follows a previous decline. The gross profit margin has decreased significantly from 17.68% to 8.72%, indicating potential cost pressures. Net profit margin also declined from 3.63% to 2.67%, reflecting reduced profitability. EBIT and EBITDA margins have similarly decreased, suggesting challenges in maintaining operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved from 0.67 to 0.55, indicating better leverage management. However, return on equity has decreased from 9.94% to 7.36%, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

The cash flow situation is concerning, with a significant decline in free cash flow growth rate to -102.88%. Operating cash flow to net income ratio has decreased, indicating potential issues in converting profits into cash. Free cash flow to net income ratio has also dropped, highlighting challenges in maintaining liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.19B	14.98B	13.75B	14.47B	11.59B	6.99B
Gross Profit	2.90B	1.31B	2.43B	4.57B	2.61B	1.37B
EBITDA	961.35M	1.20B	1.38B	1.49B	1.60B	727.26M
Net Income	228.90M	399.51M	499.62M	633.63M	728.45M	209.07M
Balance Sheet
Total Assets	11.54B	10.30B	10.22B	9.53B	8.49B	7.97B
Cash, Cash Equivalents and Short-Term Investments	893.50M	684.47M	953.43M	873.78M	753.40M	185.80M
Total Debt	4.09B	2.99B	3.38B	3.32B	2.88B	3.12B
Total Liabilities	6.04B	4.87B	5.19B	4.88B	4.36B	4.65B
Stockholders Equity	5.50B	5.43B	5.03B	4.66B	4.13B	3.33B
Cash Flow
Free Cash Flow	-803.30M	19.15M	351.95M	41.20M	1.14B	415.31M
Operating Cash Flow	-803.30M	417.54M	777.42M	409.80M	1.44B	1.16B
Investing Cash Flow	-21.30M	-33.21M	-392.09M	-429.00M	-846.26M	-679.08M
Financing Cash Flow	826.70M	-381.12M	-355.82M	24.10M	-597.21M	-502.50M

Sukhjit Starch & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.15
• 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:SUKHJITS, the sentiment is Negative. The current price of 177.15 is below the 20-day moving average (MA) of 178.48, below the 50-day MA of 178.60, and above the 200-day MA of 172.08, indicating a bearish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 8.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUKHJITS.

Sukhjit Starch & Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRAIL	67 Neutral	₹6.91B	14.28	―	0.41%	36.98%	-64.34%
OCCL	67 Neutral	₹996.01M	18.71	―	10.99%	-76.65%	-76.77%
NGLFINE	66 Neutral	₹13.29B	13.84	―	0.13%	9.83%	-50.02%
INDOBORAX	63 Neutral	₹7.83B	24.50	―	0.38%	12.35%	6.79%
SUKHJITS	62 Neutral	₹5.20B	46.35	―	0.63%	-5.05%	-57.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DICIND	60 Neutral	₹4.98B	25.63	―	0.82%	1.34%	283.51%

Sukhjit Starch & Chemicals Ltd. Corporate Events

Sukhjit Starch Denies Undisclosed Developments Behind Share Price Surge

Sukhjit Starch & Chemicals Ltd. has responded to a stock exchange query after significant price and volume movements in its shares, stating that there is no undisclosed, price-sensitive information or new development from the company that would explain the recent trading activity. Management attributed the share price movement to market perception of the industry and prevailing capital market conditions beyond its control, and emphasized that it has been prompt and compliant in disclosing all required operational and financial information in line with SEBI listing regulations, reaffirming its commitment to make appropriate disclosures whenever any price-sensitive events occur.