Magadh Sugar & Energy (NSEI:MAGADSUGAR) - Share price, News & Analysis

MAGADSUGAR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	4/6

MAGADSUGAR Stock Overview

Magadh Sugar & Energy Limited manufactures and sells of sugar and its by-products in India.

Rewards

Trading at 76.8% below our estimate of its fair value

Earnings grew by 69.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over the past 3 months

Unstable dividend track record

Does not have a meaningful market cap (₹4B)

Magadh Sugar & Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magadh Sugar & Energy
Historical stock prices
Current Share Price	₹312.50
52 Week High	₹455.95
52 Week Low	₹230.00
Beta	0.72
1 Month Change	9.29%
3 Month Change	-3.13%
1 Year Change	7.68%
3 Year Change	137.37%
5 Year Change	n/a
Change since IPO	61.59%

Shareholder Returns

	MAGADSUGAR	IN Food	IN Market
7D	0.2%	-1.3%	0.1%
1Y	7.7%	-7.1%	-1.7%

Return vs Industry: MAGADSUGAR exceeded the Indian Food industry which returned -7.1% over the past year.

Return vs Market: MAGADSUGAR exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is MAGADSUGAR's price volatile compared to industry and market?
MAGADSUGAR volatility
MAGADSUGAR Average Weekly Movement	11.6%
Food Industry Average Movement	7.5%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: MAGADSUGAR is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: MAGADSUGAR's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
2015	1,158	Chandra Mohan	https://www.birla-sugar.com/Our-Companies/About-Us-MAGADH-SUGAR-AND-ENERGY-LIMITED

Magadh Sugar & Energy Limited manufactures and sells of sugar and its by-products in India. The company operates through three segments: Sugar, Distillery, and Co-Generation. It also offers molasses, bagasse, and press-mud; manufactures and sells denatured spirits, including ethanol, as well as bio-compost; and generates and transmits power.

Magadh Sugar & Energy Fundamentals Summary

How do Magadh Sugar & Energy's earnings and revenue compare to its market cap?
MAGADSUGAR fundamental statistics
Market Cap	₹4.40b
Earnings (TTM)	₹460.17m
Revenue (TTM)	₹9.95b

9.6x

P/E Ratio

0.4x

P/S Ratio

Is MAGADSUGAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAGADSUGAR income statement (TTM)
Revenue	₹9.95b
Cost of Revenue	₹7.46b
Gross Profit	₹2.50b
Other Expenses	₹2.04b
Earnings	₹460.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	32.66
Gross Margin	25.08%
Net Profit Margin	4.62%
Debt/Equity Ratio	106.3%

How did MAGADSUGAR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MAGADSUGAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MAGADSUGAR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MAGADSUGAR. This is calculated by dividing MAGADSUGAR's market cap by their current preferred multiple.
What is MAGADSUGAR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹4.40b

MAGADSUGAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	8.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does MAGADSUGAR's PE Ratio compare to its peers?

MAGADSUGAR PE Ratio vs Peers

The above table shows the PE ratio for MAGADSUGAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	86.3x

Forward PE

Price-To-Earnings vs Peers: MAGADSUGAR is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (86.3x).

Price to Earnings Ratio vs Industry

How does MAGADSUGAR's PE Ratio compare vs other companies in the Indian Food Industry?

Price-To-Earnings vs Industry: MAGADSUGAR is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Indian Food industry average (22.4x)

Price to Earnings Ratio vs Fair Ratio

What is MAGADSUGAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MAGADSUGAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MAGADSUGAR's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MAGADSUGAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MAGADSUGAR (₹312.5) is trading below our estimate of fair value (₹1344.18)

Significantly Below Fair Value: MAGADSUGAR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MAGADSUGAR's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Magadh Sugar & Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.6%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magadh Sugar & Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Magadh Sugar & Energy is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Magadh Sugar & Energy competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Magadh Sugar & Energy performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAGADSUGAR has high quality earnings.

Growing Profit Margin: MAGADSUGAR's current net profit margins (4.6%) are higher than last year (2.8%).

Past Earnings Growth Analysis

Earnings Trend: MAGADSUGAR's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: MAGADSUGAR's earnings growth over the past year (69.9%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: MAGADSUGAR earnings growth over the past year (69.9%) exceeded the Food industry 12.1%.

Return on Equity

High ROE: MAGADSUGAR's Return on Equity (7.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Magadh Sugar & Energy's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAGADSUGAR's short term assets (₹5.4B) do not cover its short term liabilities (₹5.7B).

Long Term Liabilities: MAGADSUGAR's short term assets (₹5.4B) exceed its long term liabilities (₹1.8B).

Debt to Equity History and Analysis

Debt Level: MAGADSUGAR's net debt to equity ratio (106.2%) is considered high.

Reducing Debt: MAGADSUGAR's debt to equity ratio has reduced from 124.5% to 106.3% over the past 5 years.

Debt Coverage: MAGADSUGAR's debt is well covered by operating cash flow (23.1%).

Interest Coverage: MAGADSUGAR's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Magadh Sugar & Energy current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAGADSUGAR's dividend (2.08%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: MAGADSUGAR's dividend (2.08%) is in the top 25% of dividend payers in the Indian market (1.9%)

Stability and Growth of Payments

Stable Dividend: MAGADSUGAR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MAGADSUGAR's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.9%), MAGADSUGAR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.8%), MAGADSUGAR's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure

CEO

Chandra Mohan (61 yo)

no data

Tenure

₹11,302,000

Compensation

Mr. Chandra Mohan has been Whole Time Director of Magadh Sugar & Energy Limited March 9, 2017 and also serves as its Executive President of Narkatiaganj. He joined The Oudh Sugar Mills Ltd since May 18, 20...

CEO Compensation Analysis

Compensation vs Market: Chandra's total compensation ($USD144.59K) is above average for companies of similar size in the Indian market ($USD38.35K).

Compensation vs Earnings: Chandra's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MAGADSUGAR's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: MAGADSUGAR's board of directors are considered experienced (5.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31