Fundamental Analysis

UTTAM SUGAR MILLS LTD.
Ticker : 532729  
BUY: ₹ 290.40
Target:  ₹ 330



Uttam Sugar Mills Ltd is engaged in the manufacturing of sugar, industrial alcohol, and generation of power. On a standalone basis, in Q4FY22, the company recorded net sales and other operating income of Rs 490.4 crore, a decline of 11.38 per cent as compared to Rs 553.36 crore reported in Q4FY21. On the other hand, operating profit was registered at Rs 104.08 crore in Q4FY22, giving a rise of 19.07 per cent as compared to an operating profit of Rs 87.41 crore in Q4FY21. Q4FY22 recorded a net profit of Rs 61.06 crore in comparison with a net profit of Rs 27.83 crore in Q4FY21, improving heftily by 119.4 per cent. The company has delivered decently good quality earnings for the quarter. Currently, sugar stocks are likely to be in a sweet spot due to reports that the government will allow one million tonnes of sugar exports in sugar season 2021-22. Hence, we recommend BUY.