KM SUGAR MILLS LTD.
MCAP: 60 Odd Crores.
CMP: Around 7/-
FACE VALUE: 2/-
CURRENT P/E: AROUND 5
The company yesterday announced its results for March 2016 quarter and the annual performance is as follows :- Link To Results
The company has changed FY year from Sept to March so I put the number by taking four quarters of FY15 as per the calendar year to make it comparable.
The company has turned net profit positive to the tune of 11.69 crores against market cap of 60 odd crores, the reserves have risen, the short-term borrowing has reduced, their is still 155 crores inventory.
The TCD capacity is at 10000, as much as Rajshree Sugars which has around 11500.
KM Sugar has debt to equity of 8, Rajshree Sugars has debt to equity of 14.
Rajshree Sugars stock prices have rallied from Rs 10 odd to Rs 50+ in the recent Sugar Rally. Even as Rajshree Sugars ended FY16 with a loss of 15 crores.
KM Sugar on the other hand has proposed to come out of CDR.
Highly unlikely that KM Sugars share prices can dip below face value when in profit.
UP based Sugar Mills are in focus as there is a global shortage in Sugar supply vis-a-vis Demand.
Past sugar cycle suggest we might be at a infancy stage of a larger bull run in the global sugar prices and sugar shares prices. A famous forum on stock market ValuePickr has a pretty detailed thread on Sugar sector which is updated with the latest buzz and news with charts/logical explanations etc on: http://forum.valuepickr.com/t/sugar-cycles-7-8-years-of-losses-followed-by-2-3-years-of-super-gains/657?page=1
Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.