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Davangere Sugar Company Limited
(DAVANGERE)
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Rating:48Neutral
Price Target:
₹2.50
▼(-43.44% Downside)
Action:Reiterated
Date:09/16/26
The score is weighed down primarily by weak cash generation (large negative operating and free cash flow) and a weakening profitability profile despite the FY2026 revenue rebound. Technicals add pressure with the price below key moving averages and negative MACD. Valuation is also a headwind due to a high P/E with no dividend yield data to offset it, partly balanced by improved leverage on the balance sheet.
Positive Factors
Revenue rebound
The FY2026 revenue rebound shows that the company retained the ability to grow sales after the earlier downturn. If sustained, renewed top-line activity can improve operating absorption and provide a foundation for rebuilding earnings across the sugar and allied processing business.
Negative Factors
Weak cash generation
sharply negative operating and free cash flow shows that reported earnings are not consistently converting into cash. Persistent weak conversion can constrain reinvestment, increase reliance on available balance-sheet capacity, and make the business more vulnerable during periods of weaker sugar-sector cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
The FY2026 revenue rebound shows that the company retained the ability to grow sales after the earlier downturn. If sustained, renewed top-line activity can improve operating absorption and provide a foundation for rebuilding earnings across the sugar and allied processing business.
Read all positive factors
Davangere Sugar Company Limited (DAVANGERE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.30B
Dividend YieldN/A
Average Volume (3M)2.09M
Price to Earnings (P/E)42.4
Beta (1Y)0.48
Revenue Growth28.91%
EPS Growth-51.07%
CountryIN
Employees382
SectorGeneral
Sector StrengthN/A
IndustryFood Confectioners
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,429,990,800
10 Day Avg. Volume1,624,610
30 Day Avg. Volume2,091,258
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)1.26
Price to Sales (P/S)2.66
P/FCF Ratio-13.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Davangere Sugar Company Limited Business Overview & Revenue Model
Company Description
Based in Bengaluru, India, Davangere Sugar Company Limited, established in 1970, specializes in the production and sale of sugar and molasses within India. Diversifying its operations, the company also engages in electricity co-generation and the ...
How the Company Makes Money
The company makes money primarily by processing sugarcane into finished products and selling them into wholesale/industrial channels. Key revenue streams typically include: (1) Sugar sales: revenue from producing and selling various grades of suga...
Davangere Sugar Company Limited Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.39B | 2.15B | 2.17B | 2.80B | 1.24B |
| Gross Profit | 715.43M | 569.26M | 858.48M | 654.80M | 1.10B | 409.13M |
| EBITDA | 489.59M | 509.38M | 519.81M | 503.00M | 558.05M | 343.97M |
| Net Income | 81.41M | 85.07M | 109.37M | 122.40M | 132.15M | 56.80M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 8.39B | 7.43B | 6.82B | 5.97B | 5.74B |
| Cash, Cash Equivalents and Short-Term Investments | 65.67M | 65.67M | 33.82M | 34.30M | 33.15M | 79.96M |
| Total Debt | 0.00 | 2.50B | 3.57B | 3.11B | 2.59B | 3.13B |
| Total Liabilities | -5.05B | 3.35B | 3.93B | 3.42B | 2.85B | 3.26B |
| Stockholders Equity | 5.05B | 5.05B | 3.50B | 3.40B | 3.12B | 2.47B |
Cash Flow | ||||||
| Free Cash Flow | -162.91M | -473.37M | -76.66M | -199.03M | 313.10M | -1.52B |
| Operating Cash Flow | -162.32M | -471.34M | -45.74M | 24.76M | 807.13M | -680.59M |
| Investing Cash Flow | -2.29M | -9.73M | -31.52M | -228.89M | -201.48M | -854.14M |
| Financing Cash Flow | 250.50M | 512.92M | 76.86M | 191.54M | -652.46M | 1.44B |
Davangere Sugar Company Limited Technical Analysis
Neutral
4.42
Price Trends
2.64
Negative
3.17
Negative
3.60
Negative
Market Momentum
-0.07
Negative
48.50
Neutral
68.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DAVANGERE, the sentiment is Neutral. The current price of 4.42 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.64, and above the 200-day MA of 3.60, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 68.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DAVANGERE.
Davangere Sugar Company Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹41.76B | 33.84 | ― | 0.37% | -7.59% | 7.28% | |
58 Neutral | ₹16.04B | 23.25 | ― | 1.29% | 4.23% | -6.89% | |
57 Neutral | ₹140.26B | 35.37 | ― | 0.54% | 14.99% | -11.46% | |
56 Neutral | ₹46.75B | 23.40 | ― | 0.43% | -1.93% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹6.40B | 22.19 | ― | 0.18% | 17.18% | ― | |
48 Neutral | ₹3.30B | 42.40 | ― | ― | 28.91% | -51.07% |
* General Sector Average
IN:DAVANGERE
Davangere Sugar Company Limited
2.27
-1.83
-44.63%
IN:AVADHSUGAR
Avadh Sugar & Energy Ltd.
767.25
349.95
83.86%
IN:BAJAJHIND
Bajaj Hindusthan Sugar Limited
19.22
-1.45
-7.01%
IN:BALRAMCHIN
Balrampur Chini Mills Ltd
648.65
187.34
40.61%
IN:BANARISUG
Bannari Amman Sugars Limited
3,336.65
-255.20
-7.11%
IN:UGARSUGAR
Ugar Sugar Works Ltd
55.55
13.20
31.18%
Davangere Sugar Company Limited Corporate Events
Davangere Sugar Files Scrutinizer’s Report on AGM Voting Results
Sep 15, 2026
Davangere Sugar Company Limited has informed the stock exchanges that it has submitted the consolidated scrutinizer’s report on votes cast through remote e-voting and at its 55th Annual General Meeting held on September 12, 2026 in Davangere...
Davangere Sugar details proceedings of its 55th AGM
Sep 12, 2026
Davangere Sugar Company Limited held its 55th Annual General Meeting on September 9, 2026 in Davangere, attended by 340 shareholders and led by Chairman and Managing Director S.S. Ganesh alongside other directors and key managerial personnel. The ...
Davangere Sugar boosts equity capital via USD 10 million FCCB conversion
Aug 25, 2026
Davangere Sugar Company Limited’s board has approved the allotment of 26,59,05,000 fully paid equity shares of face value INR 1 each at a conversion price of INR 3.60 per share, following the conversion of 100 unsecured foreign currency conv...
Davangere Sugar Sets September 12 Date for 55th AGM
Aug 20, 2026
Davangere Sugar Company Limited has scheduled its 55th Annual General Meeting for September 12, 2026, at Davangere, Karnataka, to present and adopt the audited financial statements for the year ended March 31, 2026. Shareholders will also vote on ...
Davangere Sugar clears USD 100 million FCCB issue for Afrinex listing
Jul 3, 2026
Davangere Sugar Company has approved the issuance of unsecured Foreign Currency Convertible Bonds worth USD 100 million, structured as 1,000 bonds of USD 100,000 each, carrying a 2% annual coupon and issued at a 15% discount to face value. The bon...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.