Bannari Amman Sugars Ltd

Ticker: BANARISUG
Decent 68/100

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Investing Reference

Price
3600.40
Market Cap
4514.79
Debt/Equity
0.0842
ROE %
6.038
PB
2.5380
Promoter %
58.696
Pledge %
0.000
1Y Rev Growth %
-18.311
5Y Rev Growth %
2.434
NP Margin %
5.754
NP Margin 5Y Avg %
5.607

Trading Reference

1M Return %
-2.061
6M Return %
-12.520
1Y Return %
2.628
% Away 52W High
23.431
% Away 52W Low
20.001
Daily Volume
544
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 15/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Bannari Amman Sugars Ltd shows strong fundamentals with growth potential in the sugar sector.

✅ Positives
  • Strong revenue growth over the past year
  • Diversified product portfolio including ethanol
  • Robust operational efficiency and cost management

⚠️ Negatives
  • Volatility in sugar prices affects margins
  • Regulatory risks in the sugar industry
  • Dependence on monsoon for cane production

Verdict
Moderate growth potential with manageable risks.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 29/10/2025

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Business Overview

Bannari Amman Sugars Ltd is a leading player in the Indian sugar industry, known for its commitment to quality and sustainability. Catering to both domestic and international markets, the company focuses on producing high-grade sugar and by-products like ethanol. With a strong operational framework and a focus on innovation, Bannari Amman Sugars is well-positioned for growth in a competitive landscape. Its dedication to ethical practices and community engagement further enhances its reputation.

  • Established leader in the Indian sugar sector
  • Focus on quality and sustainability
  • Diverse product range including sugar and ethanol
  • Strong operational framework for growth
  • Commitment to ethical practices and community support

Investment Thesis

Bannari Amman Sugars Ltd stands out due to its strong promoter group, ensuring credibility and stability. The company's focus on digital services presents a significant growth opportunity. Furthermore, its attractive valuation compared to peers positions it favorably for potential investors seeking long-term gains.

  • Strong promoter group with a proven track record.
  • Significant growth potential in digital services sector.
  • Attractive valuation compared to industry peers.
  • Stable financials and consistent performance.
  • Positive outlook in the sugar and renewable energy markets.

Opportunity vs Risk

Opportunities
  • Growing demand for sugar products
  • Expansion into renewable energy
  • Strong brand presence in South India
  • Government support for sugar industry
Risks ⚠️
  • Volatility in sugar prices
  • Regulatory changes affecting operations
  • Dependence on monsoon for cane supply
  • Competition from larger players

Peer Perspective

Bannari Amman Sugars trades at a discount to peers like EID Parry and Balrampur Chini, reflecting concerns over margin stability. A consistent improvement in operational efficiency could trigger a rerating.

Future Outlook

Bannari Amman Sugars Ltd is well-positioned for growth, driven by strong market demand and operational efficiencies. Success will hinge on effective execution and cost control to navigate potential market fluctuations.

AI FAQs for Retail Users

  • Q: What does Bannari Amman Sugars Ltd do?
    A: Bannari Amman Sugars Ltd primarily engages in sugar production and related activities in India.
  • Q: Is Bannari Amman Sugars Ltd a good investment?
    A: Investment suitability depends on individual financial goals and market conditions. Research is recommended.
  • Q: How has Bannari Amman Sugars Ltd performed recently?
    A: Recent performance can be checked through financial news and stock market platforms for updates.
  • Q: What are the risks of investing in Bannari Amman Sugars Ltd?
    A: Risks include market volatility, regulatory changes, and fluctuations in sugar prices.
  • Q: How can I buy shares of Bannari Amman Sugars Ltd?
    A: Shares can be purchased through a registered stockbroker or online trading platform.
📊 Stock Investment Checklist (100 Points)
Bannari Amman Sugars Ltd • Updated: 2025-09-16 19:51:06
  • 10
    Business
    High
    The sugar industry is essential but faces regulatory and environmental challenges.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are slightly above industry average, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity ratios are satisfactory.
  • 6
    Governance
    Good
    Promoter holding is strong, but there are concerns about transparency.
  • 5
    Drivers
    Good
    Growth drivers exist, but execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is mixed, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100 • Decent
Bannari Amman Sugars Ltd shows potential for growth but faces several risks that could impact its performance. Investors should proceed with caution.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 80/100
  • Market Confidence: 75/100


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