BAJAJ HUNDUSTAN SUGAR
WEEKLY TIME FRAME CHART
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| by priytam kumar |
About
Incorporated in 1931 as "The Hindustan Sugar Mills Limited," Bajaj Hindustan Sugar Limited (BHSL) was then known. Power generating, sugar, alcohol, and ethanol manufacturing are the company's activities.
Technical Analysis
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Market Cap ₹ 5,427 Cr.
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Current Price ₹ 42.5
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52 week High / Low ₹ 44.0 / 15.4
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Stock P/E
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Book Value ₹ 35.0
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Dividend Yield 0.00 %
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ROCE 0 .80 %
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ROE- -1.90 %
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Face Value ₹ 1.00
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Industry PE 16.4
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Promoter holding 25.0 %
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Pledged percentage 100 %
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Debt to equity 0.86
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Profit Prev 12M ₹ -46.6 Cr.
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EPS ₹ -0.68
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Price to book value 1.21
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EVEBITDA 31.6
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Price to Earning
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No. Eq. Shares 128 Cr.
Ø Change in Prom Hold 0.00 %
Key- Point
Company Overview
The total sugarcane crushing capacity of BHSL's 14 sugar mills is 136,000 tonnes crushed per day (TCD). BHSL is a Leading producer of ethanol in addition to sugar. It owns 14 co-generation facilities with a combined power generation capacity of 449 MW and six distilleries with a capacity to generate 800 kiloliters of industrial alcohol per day (KLPD).
Business segment and revenue
Sugar (76%)
About 10% of the
sugar recovered in FY23 came from the company crushing about 14 million tons of
sugarcane. The company also diverted 10.20 million tons of sugarcane to make
B-heavy molasses, which resulted in a lower percentage of sugar recovery.
Power (12%)
The company
generated 717 MUs of power and exported 171 MUs of power. The 14 plants owned
by the firm were sold to the Uttar Pradesh state grid as surplus after captive
usage.
Pledge
The promoters hold 25% of the shareholding, and 100% of their shares are
pledged.
Contingent Liabilities
The Company regularly satisfies its commitments by paying the Optionally
Convertible Debentures (OCDs) coupon rate. They perceive the Yield to Maturity
(YTM) as a contingent liability and haven't recorded it in their books, yet it
is an accruing premium for redemption. The contingent obligation of Rs 2,263
crore is due as redemption premium on OCDs due to accumulated YTM.
Liquidity
OCD redemption and YTM payment will start in FY25 and be repaid in 13 equal annual installments, with the first installment due in March 2025. As of FY24, BHSL's gross cash accruals are insufficient to cover both the YTM payment and the OCD yearly installment. Nonetheless, the OCD debenture trustee deed has a clause allowing for the conversion of OCDs into equity shares of BHSL.
PROS
Ø FII increases holding from Sept-2023 to March 2024 1.64% t0 2.57%
Ø Reserve Capital increases and Borrowing Capital decreases continue
Ø EPS continue increases
Ø Net profits on yearly increases
CONS
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -2.15% over past
five years.
- Promoter holding is low: 25.0%
- Company has a low return on equity of -4.75% over last 3 years.