Ugar Sugar Works Ltd (UGARSUGAR) AI Stock Analysis

• Market Cap: ₹4.28B
• Dividend Yield: 0.6%
• Average Volume (3M): 7.00K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 1.76
• Revenue Growth: 20.40%
• EPS Growth: N/A
• Country: IN
• Employees: 905
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -2.86
• Shares Outstanding: 112,500,000
• 10 Day Avg. Volume: 5,799
• 30 Day Avg. Volume: 6,999
• PEG Ratio: 0.18
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -9.44
• 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: 50 Neutral
• Price Target: ₹37.00 ▼(-18.66% Downside)

Ugar Sugar Works Ltd's overall stock score is primarily influenced by its financial performance, which is under pressure due to declining revenues and high leverage. Technical analysis provides mixed signals, with bearish trends but some potential for upward momentum. The valuation suggests the stock may be overvalued, with a high P/E ratio and modest dividend yield.

Positive Factors

Vertical integration (cane cultivation + processing)

Owning both cultivation and processing creates a durable business-model advantage: it secures cane supply, improves control over input costs and quality, and supports factory utilization. This structural integration helps stabilize volumes and margins over the medium term.

By-product fuel/energy potential

Ability to use or sell by-products like bagasse provides a structural cost and revenue lever. Internal fuel substitution reduces exposure to external energy costs and can materially support margin sustainability and cash generation if consistently deployed across seasons.

Demonstrated operational efficiency (positive EBITDA periods)

Historic periods of positive EBITDA show the core processing business can be economically viable when cane supply and factory utilization are adequate. This indicates management and operations have the capability to extract margins through efficiency improvements over time.

Negative Factors

High leverage and debt reliance

A substantial debt load increases refinancing and interest-rate risk and constrains financial flexibility. Over the medium term, high leverage limits the company's ability to invest in estates, sustain operations through weak harvests, or absorb price shocks.

Declining revenues and recent net losses

Sustained revenue declines and a transition to negative net margins indicate structural demand, pricing, or utilization issues. Persistent top-line erosion weakens reinvestment capacity and threatens long-term competitiveness unless operational or market fixes are implemented.

Inconsistent and negative free cash flow

Volatile and recently negative free cash flow undermines the company's ability to service debt, maintain mills, or invest in estates. Over months, weak cash conversion increases reliance on external funding and raises execution risk for turnaround plans.

Ugar Sugar Works Ltd Business Overview & Revenue Model

Company Description

The Ugar Sugar Works Limited manufactures and sells sugar, and industrial and potable alcohol primarily in India. The company offers white crystal sugar and its byproducts, including bagasse, filter cake, and final molasses. It also provides various distillery products, such as Indian made liquor (IML) products under the Old Castle Premium Whisky, U.S. Whisky, U.S. Brandy, U.S. Gin, Ugar XXX Rum, Gokak Falls Whisky, Milan Whisky, Hawk Gin, and Gagarin Vodka brands; ethanol; rectified spirit; malt spirit; and extra neutral alcohol. In addition, the company offers distillery byproducts comprising fermentation sludge, which is used in poultry feeds; fusel oil that is used in amyl alcohols/perfumes; and carbon dioxide for industrial purpose, as well as low grade potash, which is used in crops primarily sugarcane crop. Further, it generates and distributes electricity; and provides confectionery products. The company also exports its products. The Ugar Sugar Works Limited was incorporated in 1939 and is based in Belgaum, India.

How the Company Makes Money

UGARSUGAR generates revenue primarily through the sale of sugar produced from processed sugarcane. The company’s revenue model is multi-faceted, consisting of key streams such as the direct sale of sugar to wholesalers, retailers, and industrial clients. Additionally, UGARSUGAR earns income from the sale of by-products like molasses, which are utilized in the production of alcohol and animal feed, and bagasse, which can be used as biomass fuel or in paper manufacturing. The company may also engage in partnerships with local farmers, ensuring a steady supply of raw materials, which enhances operational efficiency and cost management. Seasonal variations in sugarcane production and market demand for sugar significantly influence UGARSUGAR's earnings, making it essential for the company to maintain strong relationships within the supply chain while adapting to market trends.

Ugar Sugar Works Ltd Financial Statement Overview

Summary

Ugar Sugar Works Ltd faces financial challenges with declining revenues, negative net income, high leverage, and inconsistent cash flows. While there are periods of operational efficiency, the company's financial health is under pressure, requiring careful management to improve profitability and reduce risk.

Income Statement

Ugar Sugar Works Ltd has shown declining revenue over the last few years, with a significant drop in revenue from 2023 to 2025. The net profit margin has also turned negative in 2025, indicating a loss. Gross profit margin and EBIT margin are low, highlighting challenges in maintaining profitability. However, there were periods of positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows high leverage with a substantial debt-to-equity ratio, posing financial risk. Stockholders' equity has improved modestly, but total liabilities remain high. The equity ratio is relatively low, indicating a higher reliance on debt financing, which could impact financial stability.

Cash Flow

Cash flow analysis reveals inconsistencies, with negative free cash flow in recent years and volatile operating cash flow. The operating cash flow to net income ratio highlights challenges in converting earnings into cash flow, which could affect liquidity. Positive free cash flow in 2023 was not sustained in 2024 and 2025, raising concerns about cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.70B	13.30B	11.51B	17.94B	11.14B	9.10B
Gross Profit	1.86B	1.63B	1.96B	3.58B	1.88B	1.16B
EBITDA	510.68M	538.25M	1.03B	2.11B	1.01B	703.56M
Net Income	-181.54M	-162.50M	211.43M	1.03B	433.28M	170.53M
Balance Sheet
Total Assets	0.00	11.31B	10.85B	9.16B	11.64B	8.93B
Cash, Cash Equivalents and Short-Term Investments	16.88M	217.01M	259.38M	177.94M	72.70M	64.01M
Total Debt	0.00	6.11B	5.66B	4.00B	7.00B	6.10B
Total Liabilities	-2.16B	9.15B	8.50B	6.96B	10.42B	8.13B
Stockholders Equity	2.16B	2.16B	2.35B	2.21B	1.22B	805.00M
Cash Flow
Free Cash Flow	0.00	-561.42M	-1.40B	3.35B	-385.42M	-838.75M
Operating Cash Flow	0.00	213.06M	-373.18M	3.94B	930.02M	-777.66M
Investing Cash Flow	0.00	-725.84M	-982.60M	-484.19M	-1.31B	-55.06M
Financing Cash Flow	0.00	520.28M	1.31B	-3.46B	391.51M	787.17M

Ugar Sugar Works Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.49
• 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:UGARSUGAR, the sentiment is Negative. The current price of 45.49 is above the 20-day moving average (MA) of 38.97, above the 50-day MA of 40.81, and above the 200-day MA of 44.00, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 59.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UGARSUGAR.

Ugar Sugar Works Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAWANASUG	78 Outperform	₹3.20B	3.07	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PONNIERODE	56 Neutral	₹2.36B	9.10	―	1.13%	―	―
SAKHTISUG	56 Neutral	₹2.08B	7.75	―	―	1.70%	-71.32%
UGARSUGAR	50 Neutral	₹4.28B	44.13	―	0.60%	20.40%	―
KOTARISUG	49 Neutral	₹2.01B	-157.89	―	―	-39.31%	-110.49%
VISHWARAJ	45 Neutral	₹1.37B	-4.87	―	2.88%	-3.45%	-858.71%

Ugar Sugar Works Ltd Corporate Events

Ugar Sugar Seeks Stock Exchange Nod to Reclassify Two Promoters

Ugar Sugar Works Ltd has notified the stock exchange that it has submitted an application for reclassification of certain promoters under Listing Regulation 31A, along with the requisite fees. The request covers promoters Babasaheb N. Kalyani and Sunita B. Kalyani, who together hold a small minority stake in the company, and the move may signal a change in the company’s shareholding pattern and promoter group structure, with potential implications for its governance and regulatory status once approved by the exchange.

Ugar Sugar Wins NSE Waiver on SEBI Compliance Fines

Ugar Sugar Works Ltd has received approval from the National Stock Exchange of India for a waiver of fines that had been imposed for delayed compliance with various provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended September 30, 2024. The waiver, aligned with a coordinated framework between NSE and BSE to ensure uniform decisions for commonly listed entities, relieves the company of these penalties but comes with a reminder from the exchange to maintain timely compliance with listing and other applicable regulations in the future, underscoring the importance of regulatory adherence for the company and its stakeholders.