Bannari Amman Sugars
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bannari Amman Sugars is navigating a challenging landscape characterized by revenue contraction and margin pressures, as highlighted by management's recent commentary. The sugar industry is currently experiencing a neutral regime, with stable demand but rising input costs and government policies impacting profitability. Despite these challenges, the company's conservative balance sheet, with a low debt-to-equity ratio of 0.08, supports its financial stability. Vista's forecast reflects these dynamics, projecting continued revenue decline and margin pressure, aligning with the broader industry trends. The expected upside remains limited, with a 12-month target price of approximately 3048.41, indicating a cautious outlook. The macroeconomic environment in India, while generally supportive with contained inflation and favorable liquidity conditions, does not significantly alleviate the pressures faced by the sugar sector. Over the next 12-24 months, key watchpoints include the impact of government policies on export restrictions and input costs, as well as the potential for growth in the ethanol sector, which could provide some offset to the current challenges. Overall, while the company maintains a stable market position, the outlook remains cautious due to external pressures on margins and revenue
Why We Like This Stock
Things To Watch Out For
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,220 | 1,793 | 1,917 | 1,245 | 1,095 |
| Profit Before Tax (Cr.) | 223 | 162 | 177 | 30 | 45 |
| PBT Margin | 10.1% | 9.0% | 923.3% | 2.4% | 4.1% |
| Net Profit (Cr.) | 182 | 138 | 142 | 24 | 36 |
| Earnings Per Share | 145.1 | 109.8 | 113.2 | 19.1 | 28.6 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Bannari Amman Sugars Limited engages in the manufacture and sale of sugar in India. The company operates through Sugar, Power, Distillery, and Granite Products segments. It manufactures and sells cane crush; industrial alcohol and extra neutral spirits; polished granite products; and bio and agri natural fertilizer products, including capsules, fertilizers, fungicides, insecticides, nematicides, stimulants, decomposing cultures, enriched organic manures, micronutrient mixtures, organic manures. The company also generates power through co-generation power plants and windmills. It also exports its products. It sells its products to traders, institutions, and retail customers through distributors and direct sales channels. Bannari Amman Sugars Limited was incorporated in 1983 and is based in Coimbatore, India.