Vishwaraj Sugar Industries Limited

Consumer Defensive — Confectioners · NSE

₹5.83+₹0.13 (+2.28%)

DalalBaazaar Score

23 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Vishwaraj Sugar Industries Limited manufactures and sells sugar from sugarcane in India. It operates in five segments: Sugar, Co-Generation, Distillery, IML, and Vinegar Unit.

IndustryConfectioners

SectorConsumer Defensive

Employees944

Annual revenue₹377 Cr

How does it make money?

Turns over ₹377 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹-2 left at the operating level before interest, tax and depreciation. Each of its 944 employees supports ₹39.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-1.6%

Net margin-7.5%

Revenue / employee₹39.9 lakh

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.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of -5.9% 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.

ROCE-5.9%

ROE-15.3%

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 -39% while net margin moved +96% 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-39%

Margin effect+96%

DalalBaazaar Score

23/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

17/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.56x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 10.9% to -1.6% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 13.7% to -5.9% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.73 — near-term obligations exceed near-term assets.

Red Flags

8 items require attention · 5 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 1.85x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.9x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹28 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.5 points, from 10.9% to -1.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.0x to -0.9x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.73 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.9% to -1.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.85x. Interest is payable whether or not the business has a good year.
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
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.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -4%✓ -1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.9x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -5.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹127 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.56x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.63

Loss-making

Negative earnings per share — the business is losing money

ROE

-15.3%

Weak

Weak capital efficiency

ROCE

-5.9%

Weak

Low return on total capital employed

Debt/Equity

1.85x

High

High leverage

Revenue Growth (YoY)

-19.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

23.9%

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

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹5.83

ROA

-2.3%

Weak

Assets generate little profit

Operating Margin

-12.9%

Weak

Thin margins leave little room for error

Net Margin

-10.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.73

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.5 / 5.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹615 Cr	₹550 Cr	₹454 Cr	₹377 Cr	-15.1%
EBITDA	₹67 Cr	₹68 Cr	₹17 Cr	-₹6 Cr	—
EBITDA Margin	10.9%	12.3%	3.8%	-1.6%	—
PAT (Net Profit)	-₹23 Cr	₹14 Cr	-₹37 Cr	-₹28 Cr	—
EPS	₹-0.62	₹0.78	₹-1.74	₹-1.26	—
ROE	-9.2%	5.4%	-13.2%	-11.1%	—
ROCE	13.7%	13.4%	0.3%	-5.9%	—
Total Debt	₹356 Cr	₹366 Cr	₹391 Cr	₹421 Cr	+5.8%
Free Cash Flow	₹34 Cr	₹20 Cr	-₹32 Cr	-₹6 Cr	—

🔴 Revenue has shrunk at 15.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹67 Cr to -₹6 Cr.

🔴 EBITDA Margin has fallen from 10.9% to -1.6% over 3 years (-12.5 pts).

🔴 ROE has fallen from -9.2% to -11.1% over 3 years (-2.0 pts).

🔴 ROCE has fallen from 13.7% to -5.9% over 3 years (-19.6 pts).

🔴 Total Debt has grown at 5.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹34 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹828 Cr

Total Liabilities

₹575 Cr

Total Debt

₹421 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

30.3%

Corporate Actions

Ex-Dividend Date

20 Sept 2024

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

4 mixed2 general

VISHWARAJ Share Price rise: price action and market cap

Univest, 24 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.

Vishwaraj Sugar schedules 31st AGM for September 28, 2026

scanx.trade, 28 Sept

Vishwaraj Sugar Industries reports standalone net loss of Rs 25.84 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Vishwaraj Sugar Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Vishwaraj Sugar Share Price Rises Nearly 20%

Kalkine India, 24 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.

Why Is Vishwaraj Sugar Industries Share Price Falling Key Reasons 2026

Univest, 29 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.

Watch Items

Revenue growth is negative (-19.5%) 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

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched3.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh3.7/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -4%-1.6%
✗Free cash flow remains positive-₹6 Cr
✗Interest cover stays above 3x-0.9x
✗ROCE stays above 8%-5.9%