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

• Market Cap: ₹5.67B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.22K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.42
• Revenue Growth: -5.05%
• EPS Growth: -57.82%
• Country: IN
• Employees: 1,262
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• 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: 54 Neutral
• Price Target: ₹185.00 ▲(4.43% Upside)

The overall stock score of 54 reflects significant challenges in financial performance and technical analysis. The company's declining margins and cash flow issues, combined with bearish technical indicators, weigh heavily on the score. The moderate valuation does not offset these concerns, resulting in a cautious outlook for the stock.

Positive Factors

Diversified product portfolio

A broad product mix across modified starches, liquid glucose and maltodextrin supports durable demand from food, textile, paper and pharma. Diversification reduces reliance on any single end market, smoothing revenue seasonality and supporting long-term resilience.

Long-term customer contracts

Established long-term supply contracts and distributor partnerships provide predictable revenue streams and lower off-take volatility. This structural revenue visibility aids capacity planning, working capital management and supports steady cash flow over multiple quarters.

Improving leverage

A lower debt-to-equity ratio signals better leverage management, reducing financial risk and interest burden. Improved capital structure increases flexibility to fund working capital or selective capex and strengthens the balance sheet against medium-term shocks.

Negative Factors

Material margin compression

Severe decline in gross and operating margins suggests sustained cost pressure or weakening pricing power. Margin compression erodes the firm's ability to self-fund growth, reduces cushion against input cost swings, and undermines long-term profitability sustainability.

Weak free cash flow generation

A dramatic drop in free cash flow growth indicates difficulty converting profits into cash. Persistent FCF weakness strains liquidity, limits capacity for capex or debt reduction, elevates refinancing risk and constrains strategic investments over coming quarters.

Earnings and revenue volatility

Negative revenue growth and a steep EPS decline reflect volatile demand and margin pressure. Such swings signal earnings quality and operational execution issues, making medium-term forecasting and reinvestment planning less reliable for stakeholders.

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

Sukhjit Starch & Chemicals Ltd. generates revenue primarily through the sale of its starch products and specialty chemicals to various industries. Key revenue streams include the production of modified starches, which are in high demand in the food industry for their thickening and stabilizing properties, as well as liquid glucose and maltodextrin, which serve various applications in food processing and pharmaceuticals. The company also benefits from long-term supply contracts with major clients, contributing to stable and predictable income. Additionally, strategic partnerships with distributors and manufacturers enhance market reach and bolster sales, while ongoing investments in research and development allow SUKHJITS to innovate and expand its product offerings, further driving revenue growth.

Sukhjit Starch & Chemicals Ltd. Financial Statement Overview

Summary

Sukhjit Starch & Chemicals Ltd. faces challenges in maintaining profitability and cash flow stability despite moderate revenue growth. The company has improved its leverage position, but declining margins and cash flow metrics suggest potential operational and liquidity risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.72B	14.98B	13.75B	14.47B	11.59B	6.99B
Gross Profit	3.08B	1.31B	2.43B	4.57B	2.61B	1.37B
EBITDA	1.08B	1.20B	1.38B	1.49B	1.60B	727.26M
Net Income	311.40M	399.51M	499.62M	633.63M	728.45M	209.07M
Balance Sheet
Total Assets	0.00	10.30B	10.22B	9.53B	8.49B	7.97B
Cash, Cash Equivalents and Short-Term Investments	654.48M	684.47M	953.43M	873.78M	753.40M	185.80M
Total Debt	0.00	2.99B	3.38B	3.32B	2.88B	3.12B
Total Liabilities	-5.43B	4.87B	5.19B	4.88B	4.36B	4.65B
Stockholders Equity	5.43B	5.43B	5.03B	4.66B	4.13B	3.33B
Cash Flow
Free Cash Flow	0.00	19.15M	351.95M	41.20M	1.14B	415.31M
Operating Cash Flow	0.00	417.54M	777.42M	409.80M	1.44B	1.16B
Investing Cash Flow	0.00	-33.21M	-392.09M	-429.00M	-846.26M	-679.08M
Financing Cash Flow	0.00	-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: Positive
• 100DMA: Positive
• 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:SUKHJITS, the sentiment is Negative. The current price of 177.15 is below the 20-day moving average (MA) of 177.50, above the 50-day MA of 164.64, and above the 200-day MA of 176.43, indicating a neutral trend. The MACD of 1.91 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 57.83 is Neutral, 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
OCCL	72 Outperform	₹1.17B	10.38	―	10.99%	-76.65%	-76.77%
NRAIL	67 Neutral	₹7.50B	35.75	―	0.41%	36.98%	-64.34%
DICIND	64 Neutral	₹5.13B	25.69	―	0.82%	1.34%	283.51%
NGLFINE	64 Neutral	₹10.46B	50.58	―	0.13%	9.83%	-50.02%
INDOBORAX	63 Neutral	₹7.89B	17.17	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUKHJITS	54 Neutral	₹5.67B	24.75	―	0.63%	-5.05%	-57.82%

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.