WEBSITE BSE:532673 NSE: KM SUGARMILL Inc. Year: 1971 Industry: Sugar My Bucket: Add Stock
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1. Business Overview
K.M. Sugar Mills Ltd. operates primarily in the sugar industry. Its core business involves the crushing of sugarcane to produce white crystal sugar. Beyond sugar, the company typically processes sugarcane to extract by-products such as molasses (used in distilleries for ethanol production or as animal feed), bagasse (used as biomass fuel for co-generation of power), and press mud (used as fertilizer). The company's business model revolves around procuring sugarcane from local farmers, processing it in its mill, and selling the finished sugar product primarily to institutional buyers, bulk consumers, and potentially through wholesale channels. Revenue is generated from the sales of sugar and its various by-products.
2. Key Segments / Revenue Mix
While specific revenue mix is not available, a typical integrated sugar mill like K.M. Sugar Mills Ltd. would derive the vast majority of its revenue from:
Sugar Sales: This is the primary segment, involving the production and sale of various grades of sugar.
By-products: Significant revenue contributions can also come from:
Molasses Sales: Used for industrial alcohol/ethanol production or animal feed.
Power Co-generation: Utilizing bagasse as fuel to generate electricity, some of which may be sold to the grid.
Ethanol Production: If the company has a distillery, ethanol production from molasses or cane juice can be a substantial segment, driven by government blending mandates.
The primary revenue driver remains sugar sales, with diversification into by-products providing stability and additional revenue streams.
3. Industry & Positioning
The Indian sugar industry is agro-based, highly cyclical, and subject to significant government regulation (e.g., cane pricing, sugar release mechanisms, export/import policies). It is also highly dependent on monsoon patterns affecting sugarcane yields. The industry is fragmented, with a mix of large integrated players and numerous regional, often smaller, mills. K.M. Sugar Mills Ltd. is likely a regional player, competing with other sugar mills primarily within its cane catchment area. Its positioning depends on its crushing capacity, operational efficiency, integration levels (e.g., distillery, power plant), and ability to secure consistent sugarcane supply.
4. Competitive Advantage (Moat)
For a sugar company, potential competitive advantages are often related to:
Proximity to Sugarcane Fields: Minimizes transportation costs for raw material and ensures consistent supply.
Operational Efficiency & Scale: Efficient crushing operations, high recovery rates, and optimal utilization of by-products can lead to lower production costs.
Integrated Operations: Diversification into ethanol production and co-generation of power helps de-risk the business from sugar price volatility and improves overall profitability.
Strong Farmer Relationships: Establishing good rapport and timely payments to farmers ensures reliable cane supply.
Without specific details, it is difficult to ascertain the strength of K.M. Sugar Mills Ltd.'s specific moat, but these are typical advantages sought in the sector.
5. Growth Drivers
Ethanol Blending Program (EBP): Government's aggressive targets for ethanol blending with petrol provide a significant and stable demand avenue for molasses and sugarcane juice, reducing dependence on sugar prices.
Increasing Domestic Sugar Consumption: Driven by population growth and changing dietary habits, leading to a steady increase in demand.
Value-Added Products: Expansion into refined sugar, specialty sugars, or other derivatives can command higher margins.
Exports: Favorable global sugar prices and government export policies can open up international markets.
Operational Efficiencies: Continuous improvement in cane crushing, sugar recovery, and energy efficiency.
6. Risks
Climate & Agricultural Risks: Dependence on monsoon, pest attacks, and disease can severely impact sugarcane yield and quality, directly affecting raw material availability and cost.
Regulatory Risks: Government intervention in cane pricing (Fair and Remunerative Price/State Advised Price), sugar selling prices, export/import policies, and ethanol mandates introduces significant policy risk and can impact profitability.
Price Volatility: Fluctuations in domestic and international sugar prices can lead to unpredictable revenue and profit margins.
Working Capital Intensity: The seasonal nature of the business requires significant working capital for cane procurement and inventory management.
Environmental Regulations: Increasing scrutiny on effluent treatment and emissions can lead to higher compliance costs.
Cane Availability & Farmer Relations: Competition for cane, delayed payments, or farmer protests can disrupt operations.
7. Management & Ownership
K.M. Sugar Mills Ltd., like many Indian companies, is likely to be promoter-driven. The ownership structure would typically involve the founding family or promoter group holding a significant stake in the company. The quality of management is critical for navigating the cyclical and regulated nature of the sugar industry, including efficient cane procurement, operational excellence, financial management, and ability to adapt to changing government policies. Specific details on management individuals or their track record are not available.
8. Outlook
The outlook for K.M. Sugar Mills Ltd. is intrinsically linked to the broader Indian sugar industry dynamics. A positive scenario involves continued government support for the ethanol blending program, leading to diversified revenue streams and reduced reliance on volatile sugar prices. Favorable monsoon seasons ensuring stable sugarcane production, combined with steady domestic sugar demand and potential for exports at good global prices, would also contribute positively. Conversely, challenges could arise from adverse climatic conditions impacting cane supply, unfavorable government policies (e.g., high cane prices without compensatory sugar price increases), a slowdown in ethanol blending mandates, or a crash in global sugar prices. The company's ability to maintain efficient operations, strong farmer relationships, and potentially expand its integrated facilities will be key determinants of its future performance.
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Market Cap ₹252 Cr.
Stock P/E 7.1
P/B 0.7
Current Price ₹27.4
Book Value ₹ 36.6
Face Value 2
52W High ₹33.5
Dividend Yield 0%
52W Low ₹ 22.6
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 169 | 114 | 123 | 170 | 170 | 166 | 153 | 208 | 175 | 169 |
| Other Income | 2 | 3 | 3 | 2 | 2 | 1 | 2 | 2 | 4 | 12 |
| Total Income | 171 | 117 | 126 | 171 | 172 | 167 | 155 | 210 | 179 | 181 |
| Total Expenditure | 154 | 105 | 103 | 150 | 156 | 141 | 130 | 182 | 157 | 146 |
| Operating Profit | 17 | 11 | 23 | 21 | 17 | 26 | 26 | 28 | 22 | 34 |
| Interest | 4 | 2 | 5 | 6 | 5 | 3 | 5 | 5 | 3 | 1 |
| Depreciation | 5 | 6 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 5 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 7 | 3 | 12 | 10 | 6 | 18 | 15 | 18 | 14 | 28 |
| Provision for Tax | 2 | 1 | 4 | 3 | 1 | 5 | 4 | 5 | 4 | 7 |
| Profit After Tax | 6 | 3 | 8 | 7 | 5 | 13 | 11 | 13 | 10 | 21 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 6 | 3 | 8 | 7 | 5 | 13 | 11 | 13 | 10 | 21 |
| Adjusted Earnings Per Share | 0.6 | 0.3 | 0.8 | 0.8 | 0.5 | 1.4 | 1.2 | 1.4 | 1.1 | 2.2 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 550 | 353 | 340 | 463 | 390 | 531 | 503 | 548 | 576 | 657 | 659 | 705 |
| Other Income | 7 | 6 | 9 | 37 | 14 | 11 | 5 | 10 | 11 | 8 | 7 | 20 |
| Total Income | 558 | 359 | 349 | 499 | 404 | 543 | 507 | 558 | 587 | 666 | 666 | 725 |
| Total Expenditure | 520 | 323 | 290 | 446 | 352 | 482 | 447 | 475 | 526 | 587 | 577 | 615 |
| Operating Profit | 37 | 36 | 58 | 54 | 52 | 61 | 60 | 83 | 61 | 78 | 89 | 110 |
| Interest | 14 | 17 | 8 | 11 | 8 | 18 | 11 | 12 | 14 | 17 | 18 | 14 |
| Depreciation | 14 | 9 | 12 | 13 | 12 | 15 | 15 | 15 | 16 | 23 | 22 | 21 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 9 | 10 | 38 | 29 | 32 | 28 | 34 | 56 | 31 | 39 | 49 | 75 |
| Provision for Tax | 2 | -2 | 10 | 10 | 8 | 10 | 8 | 14 | 8 | 11 | 13 | 20 |
| Profit After Tax | 7 | 12 | 28 | 19 | 24 | 19 | 26 | 41 | 23 | 28 | 36 | 55 |
| Adjustments | 0 | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 7 | 12 | 28 | 19 | 24 | 19 | 26 | 41 | 23 | 28 | 36 | 55 |
| Adjusted Earnings Per Share | 0.8 | 1.3 | 3.1 | 2.1 | 2.6 | 2 | 2.9 | 4.5 | 2.5 | 3.1 | 3.9 | 5.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | 6% | 4% | 2% |
| Operating Profit CAGR | 14% | 2% | 8% | 9% |
| PAT CAGR | 29% | -4% | 14% | 18% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -10% | -0% | 7% | 13% |
| ROE Average | 13% | 12% | 15% | 28% |
| ROCE Average | 12% | 11% | 13% | 16% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 18 | 29 | 57 | 84 | 169 | 187 | 213 | 252 | 275 | 303 | 339 |
| Minority's Interest | -0 | 6 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 34 | 33 | 49 | 32 | 36 | 44 | 40 | 26 | 50 | 28 | 19 |
| Other Non-Current Liabilities | 19 | 23 | 33 | 11 | 18 | 22 | 15 | 14 | 13 | 13 | 13 |
| Total Current Liabilities | 258 | 187 | 263 | 192 | 277 | 279 | 362 | 364 | 372 | 445 | 372 |
| Total Liabilities | 328 | 278 | 409 | 319 | 500 | 532 | 631 | 656 | 711 | 790 | 743 |
| Fixed Assets | 65 | 63 | 125 | 94 | 158 | 160 | 158 | 159 | 214 | 209 | 205 |
| Other Non-Current Assets | 3 | 7 | 17 | 21 | 25 | 41 | 46 | 82 | 115 | 136 | 137 |
| Total Current Assets | 261 | 208 | 267 | 204 | 316 | 331 | 426 | 416 | 381 | 444 | 401 |
| Total Assets | 328 | 278 | 409 | 319 | 500 | 532 | 631 | 656 | 711 | 790 | 743 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 3 | 2 | 7 | 8 | 11 | 5 | 4 | 5 | 8 | 6 | 7 |
| Cash Flow from Operating Activities | 11 | 70 | 15 | 72 | 6 | -3 | 7 | 5 | 73 | 29 | 31 |
| Cash Flow from Investing Activities | -23 | -12 | -73 | -11 | -22 | -28 | -21 | -12 | -105 | -34 | -7 |
| Cash Flow from Financing Activities | 17 | -53 | 60 | -58 | 10 | 30 | 16 | 9 | 30 | 7 | -28 |
| Net Cash Inflow / Outflow | 5 | 4 | 2 | 2 | -5 | -1 | 2 | 3 | -3 | 1 | -3 |
| Closing Cash & Cash Equivalent | 8 | 7 | 8 | 11 | 5 | 4 | 5 | 8 | 6 | 7 | 4 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.81 | 1.27 | 3.07 | 2.05 | 2.63 | 2.01 | 2.85 | 4.51 | 2.52 | 3.05 | 3.86 |
| CEPS(Rs) | 2.36 | 2.28 | 4.37 | 3.51 | 3.97 | 3.64 | 4.47 | 6.16 | 4.25 | 5.51 | 6.25 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.2 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 1.88 | 3.11 | 6.19 | 9.17 | 18.35 | 20.36 | 16.6 | 20.83 | 23.32 | 26.36 | 31.77 |
| Core EBITDA Margin(%) | 5.33 | 8.22 | 13.87 | 3.66 | 9.7 | 9.33 | 11.05 | 13.31 | 8.63 | 10.61 | 12.39 |
| EBIT Margin(%) | 4.07 | 7.35 | 13.03 | 8.58 | 10.14 | 8.65 | 8.99 | 12.35 | 7.85 | 8.47 | 10.18 |
| Pre Tax Margin(%) | 1.57 | 2.74 | 10.67 | 6.19 | 8.19 | 5.29 | 6.81 | 10.2 | 5.44 | 5.95 | 7.42 |
| PAT Margin (%) | 1.3 | 3.21 | 7.92 | 4.02 | 6.19 | 3.49 | 5.22 | 7.56 | 4.03 | 4.27 | 5.39 |
| Cash Profit Margin (%) | 3.81 | 5.76 | 11.26 | 6.88 | 9.37 | 6.3 | 8.18 | 10.33 | 6.79 | 7.71 | 8.73 |
| ROA(%) | 3.08 | 3.86 | 8.23 | 5.18 | 5.9 | 3.59 | 4.51 | 6.44 | 3.4 | 3.75 | 4.64 |
| ROE(%) | 54.72 | 50.93 | 66.02 | 26.7 | 19.08 | 10.4 | 15.44 | 24.09 | 11.43 | 12.29 | 13.3 |
| ROCE(%) | 16.21 | 18.73 | 26.83 | 19.84 | 17.19 | 14.4 | 12.65 | 17.6 | 10.06 | 10.96 | 12.11 |
| Receivable days | 12.92 | 29.19 | 22.73 | 15.57 | 23.31 | 16.59 | 14.65 | 11.48 | 6.64 | 9.82 | 10.45 |
| Inventory Days | 86.11 | 173.57 | 195.07 | 151.28 | 200.8 | 183.31 | 228.36 | 247.86 | 233.55 | 204.71 | 208.03 |
| Payable days | 57.77 | 154.07 | 143.08 | 93.67 | 187.14 | 141.27 | 148.02 | 141.83 | 111.61 | 107 | 96.67 |
| PER(x) | 2.6 | 5.59 | 8.74 | 4.62 | 3.44 | 3.16 | 4.09 | 6.48 | 10.28 | 9.19 | 7.02 |
| Price/Book(x) | 1.11 | 2.28 | 4.34 | 1.03 | 0.49 | 0.31 | 0.7 | 1.4 | 1.11 | 1.06 | 0.85 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.68 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.29 | 0.41 | 1.17 | 0.37 | 0.47 | 0.43 | 0.6 | 0.88 | 0.87 | 0.82 | 0.79 |
| EV/Core EBITDA(x) | 4.2 | 3.97 | 6.82 | 3.2 | 3.51 | 3.74 | 5.03 | 5.84 | 8.19 | 6.88 | 5.87 |
| Net Sales Growth(%) | 101.93 | -35.89 | -3.65 | 36.12 | -15.71 | 36.23 | -5.39 | 9.07 | 4.96 | 14.18 | 0.28 |
| EBIT Growth(%) | -9.87 | 15.9 | 73.23 | -13.28 | -1.82 | 16.19 | -1.64 | 49.78 | -33.28 | 23.17 | 20.54 |
| PAT Growth(%) | -41.11 | 57.78 | 141.22 | -33.21 | 28.04 | -23.3 | 41.65 | 58.03 | -44.02 | 21.01 | 26.55 |
| EPS Growth(%) | -40.96 | 57.32 | 141.45 | -33.24 | 28.04 | -23.3 | 41.65 | 58.02 | -44.02 | 21.01 | 26.55 |
| Debt/Equity(x) | 8.41 | 3.31 | 2.92 | 1.17 | 0.64 | 0.93 | 1.32 | 1.17 | 1.25 | 1.2 | 0.96 |
| Current Ratio(x) | 1.01 | 1.11 | 1.01 | 1.06 | 1.14 | 1.19 | 1.18 | 1.14 | 1.02 | 1 | 1.08 |
| Quick Ratio(x) | 0.27 | 0.28 | 0.16 | 0.21 | 0.18 | 0.23 | 0.18 | 0.09 | 0.07 | 0.14 | 0.09 |
| Interest Cover(x) | 1.63 | 1.59 | 5.52 | 3.6 | 5.19 | 2.57 | 4.12 | 5.74 | 3.26 | 3.36 | 3.69 |
| Total Debt/Mcap(x) | 7.55 | 1.45 | 0.67 | 1.13 | 1.31 | 2.98 | 1.87 | 0.83 | 1.12 | 1.13 | 1.13 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 | 56.51 |
| FII | 0 | 0.25 | 0.19 | 0.21 | 0.15 | 0.13 | 0.24 | 0.16 | 0.11 | 0.19 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.56 | 0.56 | 0 |
| Public | 43.49 | 43.23 | 43.3 | 43.28 | 43.34 | 43.36 | 43.25 | 42.77 | 42.82 | 43.3 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 | 5.2 |
| FII | 0 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.02 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.05 | 0.05 | 0 |
| Public | 4 | 3.98 | 3.98 | 3.98 | 3.99 | 3.99 | 3.98 | 3.94 | 3.94 | 3.98 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 |
* The pros and cons are machine generated.
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