The Ugar Sugar Works Limited

NSE: UGARSUGAR · Sugar

52W Range₹34 ₹62

Snapshot

Unlock The Ugar Sugar Works Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

The Ugar Sugar Works Limited is an integrated sugar manufacturer based in Belgaum, India, producing sugar, industrial and potable alcohol, and confectionery. The company also generates electricity and processes various byproducts such as bagasse, molasses, and potash.

Business Model

The company operates a diversified business model leveraging sugarcane processing to generate revenue from sugar, distillery products, and power generation. It captures value across the supply chain by converting byproducts into industrial inputs and consumer-facing liquor brands.

Growth Outlook

Growth is primarily driven by the expansion of distillery capacities, particularly ethanol production, and the sustained demand for its branded liquor portfolio. The company continues to optimise its power generation and byproduct utilisation to improve operational margins.

Key Risks

  • Regulatory Risk. The sugar industry is subject to significant government intervention regarding pricing, export quotas, and ethanol blending mandates.
  • Commodity Price Volatility. Fluctuations in global sugar prices and domestic sugarcane procurement costs directly impact the company's profitability.
  • Climatic Dependency. As an agro-based industry, the company's production volumes are highly sensitive to monsoon patterns and sugarcane crop yields.
  • Regulatory Compliance. The production and sale of potable alcohol are governed by stringent state-level excise laws and licensing requirements.

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Key Metrics

REVENUE

₹1,632 Cr

TTM · standalone

+14.4%YoY

NET PROFIT

₹29 Cr

TTM · standalone

+258.4%YoY

EPS

₹8.28

TTM · standalone

+611.1%YoY

RETURN ON EQUITY

12.3%

TTM · standalone

+20.0 ppYoY

RETURN ON CAPITAL EMPLOYED

30.4%

TTM · standalone

+23.3 ppYoY

P/E

6.4x

Q1 FY27 · standalone

6.4 vs 5.7x5Y avg

EV/EBITDA

9.5x

Q1 FY27 · standalone

9.5 vs 10.1x5Y avg

EBITDA MARGIN

8.2%

TTM · standalone

+4.6 ppYoY

NET PROFIT MARGIN

0.3%

Q1 FY27 · standalone

+4.1 ppYoY

DEBT TO EQUITY

2.9x

Q1 FY27 · standalone

+0.67xYoY

Peers · Sugar

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
The Ugar Sugar Works LimitedUGARSUGAR
₹600 Cr6.449.4914.4%8.2%12.3%30.4%+16.7%
Dhampur Bio Organics LimitedDBOL
₹830 Cr9.8011.0415.1%5.2%8.2%8.6%+45.8%
Zuari IndustriesZUARIIND
₹823 Cr7.6218.567.7%17.3%2.4%2.3%-9.9%
Magadh Sugar & Energy LimitedMAGADSUGAR
₹778 Cr15.2311.05-5.7%10.9%6.0%9.3%-3.3%
Mawana SugarsMAWANASUG
₹569 Cr20.6310.408.6%5.8%5.4%10.8%+56.1%
DCM Shriram Industries LimitedDCMSRIND
₹391 Cr12.178.21-32.3%7.0%5.2%9.1%-71.8%

As of Q1 FY27

Financials