Stock Under Rs 20: Multibagger Sugar Company Reports 158 Per Cent Profit Growth, Sales Up 16 Per Cent
The company’s revenue grew 16 per cent YoY to Rs 390 crore, compared to Rs 337 crore in Q3 FY24.
Rana Sugars Ltd has delivered a remarkable improvement in financial performance for Q4 CY24, posting triple-digit growth in net profit and EPS, despite stock price weakness over the past year.
Financial Performance
The company’s revenue grew 16 per cent YoY to Rs 390 crore, compared to Rs 337 crore in Q3 FY24. EBITDA increased 8 per cent YoY to Rs 19.8 crore, up from Rs 18.3 crore in the year-ago period. EBITDA margin, however, declined slightly to 5.07 per cent from 5.43 per cent in Q4 CY23.
Net profit surged 158 per cent YoY, reaching Rs 14.2 crore, compared to Rs 5.50 crore in Q3 FY24. Similarly, EPS jumped 156 per cent YoY to Rs 0.92, compared to Rs 0.36 in the same quarter last year.
Stock Performance
Rana Sugars Ltd’s stock declined 40.13 per cent in the past one year, underperforming the Nifty’s 1.43 per cent decline. However, the stock has delivered a staggering 251.95 per cent return over the past five years. The company’s market capitalization stands at Rs 209 crore.
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About the Company
Rana Sugars Ltd, incorporated in 1991, is engaged in sugar manufacturing, ethanol production, and power generation. The company is also a key player in the Punjab Medium Liquor (PML) sector, acting as a preferred bottler for leading liquor brands. It produces Double Refined White Sulphurless Sugar, Plantation White Sugar, and Raw Sugar.
As part of its growth strategy, the company has announced a capex plan of Rs 90 crore for FY24-FY25, which will be partially funded through debt of Rs 7 crore, with the balance coming from internal accruals.
With expanding operations, a diversified business model, and strong financial growth, Rana Sugars Ltd is making strategic moves for long-term growth, despite recent stock market weakness.
Disclaimer: This article is for informational purposes only and not an investment advice.