Bajaj Hindusthan Sugar Limited

Consumer Defensive — Confectioners · NSE

₹21.30−₹0.15 (−0.70%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Bajaj Hindusthan Sugar Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajaj Hindusthan Sugar Limited, together with its subsidiaries, manufactures and sells sugar products from sugarcane in India. It operates through Sugar, Distillery, and Power segments.

IndustryConfectioners

SectorConsumer Defensive

Employees2,829

Annual revenue₹5,398 Cr

How does it make money?

Turns over ₹5,398 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 2,829 employees supports ₹1.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -13% while net margin moved -208% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-13%

Margin effect-208%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.4% a year
✗ Latest-year revenue growth of -9.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.3x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 60% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.6% to 6.9% over 3 years.
Debt is being paid down
Total debt is down 17% over 3 years.
Return on equity is rising
ROE has improved from -3.0% to 3.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 91% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.56 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.6% to 6.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 9.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 9.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✓ ₹113 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 1.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 7.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹5,088 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.3x

Fair

Fairly valued against the generic band

P/B Ratio

5.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.23

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

0.93x

Moderate

Moderate leverage

Revenue Growth (YoY)

-9.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

637.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹113 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-15.6%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.56

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

20.5 / 20.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,175 Cr	₹6,043 Cr	₹5,515 Cr	₹5,398 Cr	-4.4%
EBITDA	₹284 Cr	₹371 Cr	₹309 Cr	₹375 Cr	+9.7%
EBITDA Margin	4.6%	6.1%	5.6%	6.9%	—
PAT (Net Profit)	-₹135 Cr	-₹86 Cr	-₹24 Cr	₹127 Cr	—
EPS	₹-1.08	₹-0.69	₹-6.26	₹0.86	—
ROE	-3.0%	-7.4%	-15.6%	3.3%	—
ROCE	0.7%	1.1%	1.8%	1.7%	—
Total Debt	₹4,292 Cr	₹3,840 Cr	₹3,561 Cr	₹3,543 Cr	-6.2%
Free Cash Flow	₹786 Cr	₹638 Cr	₹260 Cr	₹113 Cr	-47.6%

🔴 Revenue has shrunk at 4.4% a year over 3 years.

🟢 EBITDA has grown at 9.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.6% to 6.9% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹135 Cr to ₹127 Cr.

🟢 EPS has turned positive, from ₹-1.08 to ₹0.86.

🟢 ROE has risen from -3.0% to 3.3% over 3 years (+6.4 pts).

🟢 ROCE has risen from 0.7% to 1.7% over 3 years (+1.0 pts).

🟢 Total Debt has shrunk at 6.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 47.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14,304 Cr

Total Liabilities

₹10,492 Cr

Cash & Equivalents

₹87 Cr

Operating Cash Flow

₹230 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

61.7%

Corporate Actions

Ex-Dividend Date

31 Jan 2013

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

We Think That There Are Some Issues For Bajaj Hindusthan Sugar (NSE:BAJAJHIND) Beyond Its Promising Earnings

Simply Wall Street, 06 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Bajaj Hindusthan Sugar Share Price is Rising

Equitymaster, 19 Aug

Bajaj Hindusthan Sugar Share Price Rises 4.19% to 5-Month High

Univest, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bajaj Hindusthan Sugar Ltd is Rated Sell

MarketsMojo, 16 Oct

Bajaj Hindusthan Sugar turns profitable in FY26, sets Aug 27 AGM

scanx.trade, 03 Aug

Bajaj Hindusthan Sugar Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Watch Items

Revenue growth is negative (-9.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingProfitability · Valuation · Risk

WeakBusiness Quality · Growth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; ROCE stays above 8% · see Key things to watch ↑