Ugar Sugar Works Ltd (UGARSUGAR) AI Stock Analysis

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Ugar Sugar Works Ltd

(NSE:UGARSUGAR)

Select Model

Rating:50.2Neutral

Price Target:INR 42.00▼(-0.64% Downside)

Action:reiterated

Date:09/30/26

The overall score is held down primarily by weak and volatile financial performance, including thin margins, high leverage, and inconsistent cash flows that elevate balance-sheet and financing risk. Supporting the score, technical indicators point to a solid uptrend and positive momentum, while the valuation is only moderately rich rather than outright expensive, providing some offset but not enough to overcome the underlying financial fragility.

Positive Factors

By-product revenue streamsRevenue from sugar and related by-products gives the company more than one monetization channel within the same processing model. These streams can broaden utilization of sugarcane output and provide recurring support to revenue beyond core sugar sales over the medium term.

Negative Factors

Elevated leverageDebt has increased substantially while equity has grown only modestly, leaving the capital structure debt-heavy. Elevated leverage increases sensitivity to earnings and cash-flow volatility, constrains financial flexibility, and can make future investment or downturn management more difficult.

Ugar Sugar Works Ltd (UGARSUGAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 4.81B
Dividend Yield: 0.24%
Average Volume (3M): 67.58K
Price to Earnings (P/E): 17.2
Beta (1Y): 0.88
Revenue Growth: -0.70%
EPS Growth: 184.81%
Country: India
Employees: 905
Sector: General
Sector Strength: 55
Industry: Food Confectioners

Ugar Sugar Works Ltd Business Overview & Revenue Model

Company Description

Operating predominantly in India, The Ugar Sugar Works Limited is a key producer and vendor of sugar, alongside a diverse range of industrial and consumable alcoholic products. Its core offerings feature white crystal sugar, accompanied by significan...

How the Company Makes Money

Ugar Sugar Works Ltd primarily makes money by converting sugarcane into saleable sugar and selling it into the domestic market through wholesale/industrial buyers and distribution channels. Key revenue streams include: (1) Sugar sales: Revenue from t...

Ugar Sugar Works Ltd Financial Statement Overview

Summary

Financial performance is weak and volatile: revenue and earnings are highly cyclical, margins have compressed to low single digits, leverage remains high with debt around three times equity, and cash generation is inconsistent with recent negative operating and free cash flows, keeping this component near the low end of the scale.

Income Statement

42Neutral

Balance Sheet

38Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.42B	14.84B	13.30B	11.51B	17.94B	11.14B
Gross Profit	1.48B	1.01B	1.63B	1.96B	3.58B	1.88B
EBITDA	1.31B	1.11B	538.25M	1.03B	2.11B	1.01B
Net Income	276.36M	136.12M	-162.50M	211.43M	1.03B	433.28M
Balance Sheet
Total Assets	8.22B	13.20B	11.31B	10.85B	9.16B	11.64B
Cash, Cash Equivalents and Short-Term Investments	183.13M	157.50M	217.01M	259.38M	177.94M	72.70M
Total Debt	4.47B	6.68B	6.11B	5.66B	4.00B	7.00B
Total Liabilities	6.20B	10.87B	9.15B	8.50B	6.96B	10.42B
Stockholders Equity	2.01B	2.34B	2.16B	2.35B	2.21B	1.22B
Cash Flow
Free Cash Flow	0	-547.63M	-561.42M	-1.40B	3.35B	-385.42M
Operating Cash Flow	0	-308.09M	213.06M	-373.18M	3.94B	930.02M
Investing Cash Flow	0	-258.92M	-725.84M	-982.60M	-484.19M	-1.31B
Financing Cash Flow	0	569.67M	520.28M	1.31B	-3.46B	391.51M

Ugar Sugar Works Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price42.27

Price Trends

50DMA52.05Negative

100DMA47.96Negative

200DMA43.59Negative

Market Momentum

MACD-3.35Positive

RSI36.73Neutral

STOCH55.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UGARSUGAR, the sentiment is Negative. The current price of 42.27 is below the 20-day moving average (MA) of 46.17, below the 50-day MA of 52.05, and below the 200-day MA of 43.59, indicating a bearish trend. The MACD of -3.35 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UGARSUGAR.

Ugar Sugar Works Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:UGARSUGAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MAWANASUG	68Neutral	INR 5.72B	13.89	―	2.79%	2.39%	-61.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DWARKESH	53Neutral	INR 7.97B	23.48	―	0.23%	-4.06%	125.89%
IN:UGARSUGAR	50Neutral	INR 4.81B	17.20	―	0.24%	-0.70%	184.81%
IN:DCMSRIND	49Neutral	INR 7.57B	19.55	―	0.68%	-32.29%	-70.25%
IN:DAVANGERE	45Neutral	INR 3.44B	38.09	―	―	28.91%	-51.07%
IN:KOTARISUG	45Neutral	INR 1.90B	14.20	―	―	12.18%	―

* General Sector Average

Performance Comparison

IN:UGARSUGAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:UGARSUGAR	Ugar Sugar Works Ltd	42.27	1.37	3.35%
IN:DAVANGERE	Davangere Sugar Company Limited	2.04	-1.71	-45.60%
IN:DCMSRIND	DCM Shriram Industries Limited	58.72	8.03	15.83%
IN:DWARKESH	Dwarikesh Sugar Industries Ltd.	42.96	1.18	2.83%
IN:KOTARISUG	Kothari Sugars & Chemicals Ltd.	23.43	-6.00	-20.39%
IN:MAWANASUG	Mawana Sugars Limited	143.60	62.08	76.16%

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.

Date of analysis: Sep 30, 2026

Ugar Sugar Works Ltd AI Stock Analysis