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Ponni Sugars (Erode) Ltd.
(PONNIERODE)
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Rating:71Outperform
Price Target:
₹369.00
▲(16.06% Upside)
Action:Reiterated
Date:10/14/26
The score is driven primarily by a very conservative, debt-free balance sheet and an attractive valuation (low P/E with a dividend). Offsetting this, financial performance is held back by historically volatile margins and inconsistent cash flow, while technical signals are mixed with negative MACD and only neutral momentum.
Positive Factors
Debt-free balance sheet
The company’s debt-free balance sheet materially reduces interest-rate exposure, refinancing risk, and financial distress risk. This provides flexibility to maintain operations through weaker sugar cycles and preserves capacity to fund investment or shareholder returns from internally generated resources.
Negative Factors
Volatile gross margins
Large swings in gross margin reduce earnings visibility and make it harder to assess the company’s sustainable profit level. Variable margins can cause substantial changes in operating performance between years, limiting confidence that the FY2026 profitability rebound will persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The company’s debt-free balance sheet materially reduces interest-rate exposure, refinancing risk, and financial distress risk. This provides flexibility to maintain operations through weaker sugar cycles and preserves capacity to fund investment or shareholder returns from internally generated resources.
Read all positive factors
Ponni Sugars (Erode) Ltd. (PONNIERODE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.75B
Dividend Yield1.56%
Average Volume (3M)4.30K
Price to Earnings (P/E)4.9
Beta (1Y)0.72
Revenue Growth28.11%
EPS Growth200.80%
CountryIN
Employees343
SectorGeneral
Sector StrengthN/A
IndustryFood Confectioners
Share Statistics
EPS (TTM)65.83
Shares Outstanding8,598,418
10 Day Avg. Volume2,870
30 Day Avg. Volume4,300
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.42
Price to Sales (P/S)0.57
P/FCF Ratio10.04
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
Ponni Sugars (Erode) Ltd. Business Overview & Revenue Model
Company Description
Ponni Sugars (Erode) Limited is an Indian enterprise primarily engaged in the manufacturing and distribution of sugar. Its operations are bifurcated into two core segments: sugar production and power cogeneration, with the latter involving the gen...
Ponni Sugars (Erode) Ltd. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
90
Very Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.92B | 4.15B | 3.59B | 4.21B | 4.35B | 2.88B |
| Gross Profit | 750.90M | 363.60M | 597.20M | 1.36B | 460.20M | 751.40M |
| EBITDA | 1.14B | 374.40M | 262.20M | 606.00M | 555.50M | 424.10M |
| Net Income | 566.10M | 480.30M | 192.80M | 468.60M | 383.40M | 292.50M |
Balance Sheet | ||||||
| Total Assets | 6.76B | 6.52B | 5.80B | 6.05B | 5.15B | 4.19B |
| Cash, Cash Equivalents and Short-Term Investments | 753.10M | 476.00M | 260.30M | 405.80M | 314.50M | 95.40M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 935.20M | 837.70M | 478.10M | 528.20M | 616.20M | 501.50M |
| Stockholders Equity | 5.82B | 5.68B | 5.32B | 5.52B | 4.53B | 3.68B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 235.50M | -173.00M | 10.40M | 1.40M | -71.60M |
| Operating Cash Flow | 0.00 | 389.90M | 96.30M | 160.80M | 113.70M | 108.80M |
| Investing Cash Flow | 0.00 | -399.20M | -47.70M | -120.30M | 6.90M | -128.80M |
| Financing Cash Flow | 0.00 | -25.80M | -60.70M | -57.00M | -50.60M | -44.20M |
Ponni Sugars (Erode) Ltd. Technical Analysis
Negative
317.95
Price Trends
370.57
Negative
345.87
Negative
312.03
Positive
Market Momentum
-11.24
Positive
34.63
Neutral
8.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PONNIERODE, the sentiment is Negative. The current price of 317.95 is below the 20-day moving average (MA) of 351.99, below the 50-day MA of 370.57, and above the 200-day MA of 312.03, indicating a neutral trend. The MACD of -11.24 indicates Positive momentum. The RSI at 34.63 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PONNIERODE.
Ponni Sugars (Erode) Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹2.75B | 4.86 | ― | 1.56% | 28.11% | 200.80% | |
71 Outperform | ₹2.85B | 5.84 | ― | 0.73% | -8.26% | 15.48% | |
70 Outperform | ₹38.94B | 31.93 | ― | 0.40% | -7.59% | 7.28% | |
56 Neutral | ₹1.92B | 6.99 | ― | ― | 16.25% | 30.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹2.76B | 7.25 | ― | 0.42% | -0.91% | ― | |
47 Neutral | ₹1.86B | 34.05 | ― | 1.53% | -8.21% | -55.42% |
* General Sector Average
IN:PONNIERODE
Ponni Sugars (Erode) Ltd.
319.80
30.84
10.67%
IN:BANARISUG
Bannari Amman Sugars Limited
3,105.00
-468.87
-13.12%
IN:KCPSUGIND
KCP Sugar & Industries Corp. Ltd.
24.37
-6.77
-21.75%
IN:KMSUGAR
K.M. Sugar Mills Ltd.
30.94
8.53
38.08%
IN:KOTARISUG
Kothari Sugars & Chemicals Ltd.
22.47
-8.85
-28.26%
IN:SAKHTISUG
Sakthi Sugars Limited
16.17
-4.66
-22.37%
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.