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Market Cap

₹1.3b

Last Updated

2021/04/10 12:12 UTC

Data Sources

Company Financials

Executive Summary

Ponni Sugars (Erode) Limited manufactures sugar and its by-products in India. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Ponni Sugars (Erode)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PONNIERODE is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PONNIERODE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

PONNIERODE

4.0%

IN Food

1.0%

IN Market


1 Year Return

15.9%

PONNIERODE

37.9%

IN Food

72.2%

IN Market

Return vs Industry: PONNIERODE underperformed the Indian Food industry which returned 37.9% over the past year.

Return vs Market: PONNIERODE underperformed the Indian Market which returned 72.2% over the past year.


Shareholder returns

PONNIERODEIndustryMarket
7 Day2.8%4.0%1.0%
30 Day-0.1%4.4%-0.4%
90 Day-5.9%2.1%6.7%
1 Year18.6%15.9%40.3%37.9%74.9%72.2%
3 Year3.8%-1.0%47.6%42.3%28.0%21.6%
5 Year-16.4%-21.6%178.4%163.6%87.4%73.0%

Long-Term Price Volatility Vs. Market

How volatile is Ponni Sugars (Erode)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ponni Sugars (Erode) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PONNIERODE (₹154.1) is trading below our estimate of fair value (₹483.63)

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


Price To Earnings Ratio

PE vs Industry: PONNIERODE is good value based on its PE Ratio (4.9x) compared to the IN Food industry average (16.2x).

PE vs Market: PONNIERODE is good value based on its PE Ratio (4.9x) compared to the Indian market (18.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PONNIERODE is good value based on its PB Ratio (0.5x) compared to the IN Food industry average (1.3x).


Future Growth

How is Ponni Sugars (Erode) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

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 Ponni Sugars (Erode) 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.


Past Performance

How has Ponni Sugars (Erode) performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PONNIERODE has high quality earnings.

Growing Profit Margin: PONNIERODE's current net profit margins (10.4%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: PONNIERODE has become profitable over the past 5 years, growing earnings by 27.7% per year.

Accelerating Growth: PONNIERODE's earnings growth over the past year (0.7%) is below its 5-year average (27.7% per year).

Earnings vs Industry: PONNIERODE earnings growth over the past year (0.7%) underperformed the Food industry 19.1%.


Return on Equity

High ROE: PONNIERODE's Return on Equity (9.2%) is considered low.


Financial Health

How is Ponni Sugars (Erode)'s financial position?


Financial Position Analysis

Short Term Liabilities: PONNIERODE's short term assets (₹1.1B) exceed its short term liabilities (₹417.2M).

Long Term Liabilities: PONNIERODE's short term assets (₹1.1B) exceed its long term liabilities (₹70.4M).


Debt to Equity History and Analysis

Debt Level: PONNIERODE is debt free.

Reducing Debt: PONNIERODE has no debt compared to 5 years ago when its debt to equity ratio was 69.9%.

Debt Coverage: PONNIERODE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PONNIERODE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ponni Sugars (Erode) current dividend yield, its reliability and sustainability?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PONNIERODE's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: PONNIERODE's dividend (2.59%) is in the top 25% of dividend payers in the Indian market (1.81%)


Stability and Growth of Payments

Stable Dividend: PONNIERODE's dividend payments have been volatile in the past 10 years.

Growing Dividend: PONNIERODE's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), PONNIERODE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

13.9yrs

Average board tenure


CEO

N. Ramanathan (66 yo)

13.25yrs

Tenure

₹14,176,000

Compensation

Mr. N. Ramanathan, B Com., ACA, ACS, ACMA, has been the Managing Director of Ponni Sugars (Erode) Limited since April 01, 2008 and has been its Secretary since April 01, 2005. Mr. Ramanathan serves as a Co...


CEO Compensation Analysis

Compensation vs Market: N.'s total compensation ($USD189.65K) is above average for companies of similar size in the Indian market ($USD40.60K).

Compensation vs Earnings: N.'s compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: PONNIERODE's board of directors are seasoned and experienced ( 13.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Ponni Sugars (Erode) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ponni Sugars (Erode) Limited
  • Ticker: PONNIERODE
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹1.328b
  • Shares outstanding: 8.60m
  • Website: https://www.ponnisugars.com

Number of Employees


Location

  • Ponni Sugars (Erode) Limited
  • ESVIN House
  • No.13 Rajiv Gandhi Salai (OMR)
  • Chennai
  • Tamil Nadu
  • 600096
  • India

Listings


Biography

Ponni Sugars (Erode) Limited manufactures sugar and its by-products in India. It operates in two segments, Sugar and Cogeneration. The company also engages in the cogeneration of power. Ponni Sugars (Erode...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 12:12
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.