Vishwaraj Sugar Industries Ltd. (VISHWARAJ) AI Stock Analysis

• Market Cap: ₹1.11B
• Dividend Yield: 2.88%
• Average Volume (3M): 75.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -3.45%
• EPS Growth: -858.71%
• Country: IN
• Employees: 880
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -0.31
• Shares Outstanding: 217,827,700
• 10 Day Avg. Volume: 25,535
• 30 Day Avg. Volume: 75,094
• PEG Ratio: 0.02
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -2.79
• 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: ₹5.00 ▼(-27.85% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Vishwaraj Sugar Industries Ltd. is facing significant financial challenges, particularly in profitability and cash flow, which are reflected in its low financial performance score. The technical analysis indicates a bearish trend with weak market momentum, further impacting the stock's attractiveness. While the dividend yield offers some positive aspect, the negative P/E ratio highlights valuation concerns. Overall, the stock score is primarily driven by these financial and technical weaknesses.

Positive Factors

Diversified co-product revenue (ethanol, molasses, bagasse)

The firm's core business includes sugar plus ethanol, molasses and bagasse/power monetization. This product mix lets management shift output toward higher-margin ethanol or power when sugar prices weaken, providing structural revenue diversification across cycles.

Manageable leverage and equity base

A debt-to-equity ratio near 1.39 with a solid equity base gives the company financial resilience in a capital-intensive, seasonal industry. Manageable leverage reduces solvency risk and supports operational continuity through sugar-cycle volatility over the medium term.

Captive power potential from bagasse

Use of bagasse for captive power and potential grid sales can lower energy costs and create an additional revenue stream. Over time, captive generation improves margins and insulates operations from industrial power price volatility, a durable cost advantage.

Negative Factors

Severely compressed gross margins

A drop in gross margin to ~3% indicates material cost pressure or lower realizations that erode the company's core profitability. Sustained margin compression reduces the buffer for SG&A and capital costs, making the business more vulnerable in prolonged low-price environments.

Revenue decline and shift to net loss

A significant revenue decline and transition to net loss indicate weakening demand, lower plant utilization, or adverse price/mix shifts. Persisting top-line contraction undermines scale economics and impairs capacity to fund reinvestment or stabilize margins long term.

Deteriorated free cash flow

Sharp negative free cash flow reduces financial flexibility to meet seasonal working capital needs, capex or debt service without external funding. In a cyclical agribusiness, sustained FCF deficits constrain operational resilience and strategic investments.

Vishwaraj Sugar Industries Ltd. Business Overview & Revenue Model

Company Description

Vishwaraj Sugar Industries Limited manufactures and sells sugar and other related products in India. It operates through Sugar, Co-Generation, Distillery, IML, and Vinegar segments. The company also produces distillery products, including ethanol, and rectified and extra-neutral spirits; and bagasse, molasses, brewed vinegar, compost, press-mud, and carbon dioxide. In addition, it is involved in the co-generation of electricity with an installed capacity of 36.4 MW. The company was formerly known as Vishwanath Sugar and Steel Industries Limited and changed its name to Vishwaraj Sugar Industries Limited in November 2012. Vishwaraj Sugar Industries Limited was incorporated in 1995 and is based in Belgaum, India.

How the Company Makes Money

Vishwaraj Sugar Industries Ltd. primarily makes money by selling sugar produced from sugarcane. A significant portion of earnings can also come from monetizing co-products of the sugar manufacturing process: (1) Ethanol/industrial alcohol: where a sugar mill diverts sugarcane juice and/or processes molasses to produce ethanol/industrial alcohol that is sold to customers such as oil marketing companies (for fuel blending programs) and/or industrial buyers. (2) Molasses sales: selling molasses (a by-product of sugar production) to distilleries and other industrial users when not internally consumed for ethanol production. (3) Bagasse and power: using bagasse (fibrous residue) as boiler fuel for captive power generation and, where surplus power is available and permitted, selling electricity to the grid; alternatively, selling bagasse to third parties. Revenue is therefore a mix of sugar sales plus by-product/co-product monetization, and profitability is influenced by factors such as regulated/market-linked sugar and ethanol pricing, sugarcane procurement costs, recovery rates, plant utilization, and the company’s ability to shift the product mix between sugar and ethanol based on relative economics. Specific details on revenue split by segment, named customer contracts/partnerships, and the extent of power export are null.

Vishwaraj Sugar Industries Ltd. Financial Statement Overview

Summary

Vishwaraj Sugar Industries Ltd. faces significant challenges with profitability and cash flow generation amid declining revenues and increased costs. The balance sheet remains relatively stable, providing some financial resilience. However, the company needs to address its cash flow issues and improve profitability to enhance its financial health in the competitive food confectioners industry.

Income Statement

Vishwaraj Sugar Industries Ltd. has shown considerable volatility in its income statement metrics. The gross profit margin has declined significantly from 15.3% to 3.1% over the latest annual period, indicating increased cost pressures. Revenue has shown a declining trend with a significant drop of approximately 17.4% from the previous year, affecting overall profitability. The company has also moved from a positive net income to a substantial net loss, reducing its net profit margin to -8.2%.

Balance Sheet

The balance sheet is relatively stable with a debt-to-equity ratio of 1.39, showing manageable leverage. However, the equity ratio has decreased slightly from 35.9% to 34.3%, indicating a slight decline in the company's reliance on equity to finance its assets. Despite these concerns, Vishwaraj maintains a solid base of equity, which contributes to its financial stability.

Cash Flow

The company has faced challenges in its cash flow, with a substantial decrease in free cash flow from a positive position to -664.97 million. The operating cash flow to net income ratio indicates operational efficiencies, but the free cash flow to net income ratio reflects cash flow challenges, impacting the company's ability to generate cash relative to its net earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.32B	4.54B	5.50B	6.15B	4.66B	4.10B
Gross Profit	150.29M	139.21M	718.74M	1.09B	1.18B	737.59M
EBITDA	59.79M	193.16M	673.63M	678.56M	942.77M	614.73M
Net Income	-354.07M	-370.23M	144.98M	-234.46M	601.60M	82.93M
Balance Sheet
Total Assets	8.07B	8.19B	7.99B	7.26B	7.70B	7.12B
Cash, Cash Equivalents and Short-Term Investments	85.52M	96.93M	11.93M	15.43M	122.22M	484.02M
Total Debt	3.54B	3.91B	3.66B	3.56B	3.70B	3.76B
Total Liabilities	5.64B	5.38B	5.31B	4.71B	4.87B	4.86B
Stockholders Equity	2.43B	2.80B	2.68B	2.56B	2.83B	2.26B
Cash Flow
Free Cash Flow	481.03M	-664.97M	198.58M	336.11M	19.76M	471.59M
Operating Cash Flow	863.01M	161.54M	1.46B	520.65M	352.11M	559.00M
Investing Cash Flow	-394.48M	-826.51M	-1.25B	-183.76M	-328.07M	-85.27M
Financing Cash Flow	-479.94M	749.97M	-224.42M	-442.61M	-381.01M	-62.15M

Vishwaraj Sugar Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.93
• 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:VISHWARAJ, the sentiment is Negative. The current price of 6.93 is above the 20-day moving average (MA) of 5.57, above the 50-day MA of 6.06, and below the 200-day MA of 7.95, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VISHWARAJ.

Vishwaraj Sugar Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAWANASUG	78 Outperform	₹2.98B	22.43	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
INCREDIBLE	59 Neutral	₹1.55B	26.50	―	―	10.59%	82.10%
RAJSREESUG	53 Neutral	₹857.22M	-3.19	―	―	-27.56%	-734.03%
KOTARISUG	49 Neutral	₹1.94B	4.71	―	―	-39.31%	-110.49%
VISHWARAJ	45 Neutral	₹1.11B	-5.57	―	2.88%	-3.45%	-858.71%

Vishwaraj Sugar Industries Ltd. Corporate Events

Vishwaraj Sugar Files SEBI Demat Compliance Certificate for December 2025 Quarter

Vishwaraj Sugar Industries Ltd. has notified the stock exchanges that it has obtained and submitted the requisite certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025, as issued by its registrar and share transfer agent, Bigshare Services Pvt. Ltd. The certificate confirms that all securities received for dematerialisation during the quarter were appropriately processed—either accepted or rejected by the depositories, duly listed where earlier securities are listed, and that corresponding physical certificates were mutilated, cancelled, and replaced with the depositories’ names in the company’s register of members within the stipulated 15-day period, underscoring the company’s compliance with dematerialisation and record-keeping norms for investors and regulators.