Bannari Amman Sugars Limited

Consumer Defensive — Confectioners · NSE

₹3,307.70−₹72.70 (−2.15%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bannari Amman Sugars Limited engages in the manufacture and sale of sugar in India. The company operates through Sugar, Power, Distillery, and Granite Products segments.

IndustryConfectioners

SectorConsumer Defensive

Annual revenue₹1,911 Cr

How does it make money?

Turns over ₹1,911 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

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 8.7% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -24% while net margin moved +36% 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-24%

Margin effect+36%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.8% a year
✗ Profit CAGR of only 1.0%
✗ Latest-year revenue growth of -58.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

56/ 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

34.1x

3Y Median

29.9x

40 monthly readings · mean 31.9x · range 20.1x–44.9x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 14% above its 3y median of 29.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 21% below the peer median of 43.3x.

vs. its own history

Fair

29.9x median over 40 months · +14%

vs. sector peers

Cheap

43.3x median of 4 peers · -21%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.9x

PEG

32.73

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 98% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 15.1% to 8.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 98% 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 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹400 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.6% to 10.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro 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 9%✓ 10.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹400 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 8.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 29.9x✓ 34.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹4,148 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹97.09

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

8.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-58.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

41.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.38%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹400 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-8.2%

Weak

Thin margins leave little room for error

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

7.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3340.6 / 3540.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,519 Cr	₹2,218 Cr	₹1,790 Cr	₹1,911 Cr	-8.8%
EBITDA	₹343 Cr	₹312 Cr	₹215 Cr	₹208 Cr	-15.3%
EBITDA Margin	13.6%	14.1%	12.0%	10.9%	—
PAT (Net Profit)	₹143 Cr	₹152 Cr	₹105 Cr	₹148 Cr	+1.0%
EPS	₹114.35	₹121.46	₹83.47	₹117.96	+1.0%
ROE	9.2%	9.0%	5.9%	7.7%	—
ROCE	15.1%	13.7%	9.2%	8.7%	—
Total Debt	₹581 Cr	₹486 Cr	₹150 Cr	₹9 Cr	-74.8%
Free Cash Flow	₹437 Cr	₹133 Cr	₹354 Cr	₹400 Cr	-2.9%

🔴 Revenue has shrunk at 8.8% a year over 3 years.

🔴 EBITDA has shrunk at 15.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.6% to 10.9% over 3 years (-2.7 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.0% a year).

🟡 EPS has been broadly flat over 3 years (1.0% a year).

🔴 ROE has fallen from 9.2% to 7.7% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 15.1% to 8.7% over 3 years (-6.3 pts).

🟢 Total Debt has shrunk at 74.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 2.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,157 Cr

Total Liabilities

₹244 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹514 Cr

Capex

-₹114 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

78.7%

Corporate Actions

Dividend Rate

₹12.5

Ex-Dividend Date

16 Sept 2026

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 positive1 mixed3 general

Bannari Amman Sugars Posts 18% Profit Jump to ₹41.6 Cr Despite 43% Revenue Drop

Sahi, 27 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Why Is Bannari Amman Sugars Share Price Falling Key Reasons 2026

Univest, 03 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Bannari Amman Sugars Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Bannari Amman Sugars shareholders approve ₹12.50 dividend for FY26

scanx.trade, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Sugar Stocks surge up to 10% as Global Sugar Prices Hit 14-Month High; Balrampur Chini, Dalmia Bharat Sugar, Renuka Sugars Gain

India Infoline, 19 Aug

Bannari Amman Sugars Q1FY26 net loss widens to ₹109 million

scanx.trade, 17 Aug

Watch Items

Revenue growth is negative (-58.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

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.

All 5 tripwires holding · see Key things to watch ↑