Ugar Sugar Share Price Target 2023, 2024, 2025, 2030 and Long Term
Sugar is one of the most widely consumed commodities in the world, and India is the largest producer and consumer of sugar. The sugar industry in India is a major contributor to the economy, providing employment to millions of farmers and workers. The sugar sector also supports various ancillary industries, such as power generation, ethanol production, and biotechnology.
Ugar Sugar Works Ltd. is one of the leading sugar manufacturers in India, with a history spanning over 75 years. The company operates two sugar plants in Karnataka, with a combined crushing capacity of 18,000 metric tons of cane per day. The company also has a 44 MW cogeneration power plant and a distillery unit with a capacity of 75,000 liters per day.
In this blog post, we will analyze the performance and prospects of Ugar Sugar Works Ltd. and provide Ugar Sugar Share Price Target 2023, 2024, 2025, 2030 and Long Term.
Consider reading: BSE Share Price Target
Page Contents
Ugar Sugar Share Price Target 2023, 2024, 2025, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 120 | 150 | 135 |
| 2024 | 150 | 180 | 165 |
| 2025 | 180 | 230 | 205 |
| 2026 | 200 | 280 | 240 |
| 2027 | 250 | 350 | 300 |
| 2028 | 300 | 450 | 375 |
| 2029 | 400 | 600 | 500 |
| 2030 | 500 | 800 | 650 |
| 2031 | 600 | 1000 | 800 |
| 2032 | 1000 | 1200 | 1100 |
The Ugar Sugar Share Price Target for 2023 is Rs 135, for the year 2024 it is Rs 165, for the year 2025 it is Rs 205 and for the year 2030 it is Rs 650.
Consider reading: Zomato Share Price Target
Ugar Sugar Share Price Target 2023
The Ugar Sugar Share Price Target 2023 is Rs 135. Looking at the past performance of the stock, the share prices of Ugar Sugar is expected to give good returns.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 120 | 150 | 135 |
Ugar Sugar Share Price Target 2024
The Ugar Sugar Share Price Target 2024 is Rs 165. The share price for Ugar Sugar is expected to continue its good performance.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 150 | 180 | 165 |
Ugar Sugar Share Price Target 2025
The Ugar Sugar Share Price Target 2025 is Rs 205. Ugar Sugar should be able to leverage its expansion plans and improve its profitability.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 180 | 230 | 205 |
Ugar Sugar Share Price Target 2030
The Ugar Sugar Share Price Target 2023 is 135. Over the long term the Ugar Sugar share price is expected to give excellent returns,
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 500 | 800 | 650 |
Ugar Sugar Financials
Below are the Ugar Sugar Financials:
| Financial Header | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Sales | 750 | 870 | 956 | 1,137 | 1,794 |
| Expenses | 700 | 802 | 888 | 1,038 | 1,586 |
| Operating Profit | 50 | 68 | 68 | 99 | 208 |
| OPM % | 7% | 8% | 7% | 9% | 12% |
| Other Income | 9 | 3 | 6 | 2 | 6 |
| Interest | 38 | 43 | 43 | 44 | 48 |
| Depreciation | 15 | 14 | 12 | 11 | 18 |
| Profit before tax | 5 | 14 | 19 | 46 | 148 |
| Tax % | 21% | 1% | 8% | 7% | 31% |
| Net Profit | 4 | 14 | 17 | 43 | 103 |
| EPS in Rs | 0.39 | 1.22 | 1.52 | 3.85 | 9.16 |
Ugar Sugar Financials Summary (Mar 2019 – Mar 2023)
- Sales Growth: Ugar Sugar’s sales have seen a consistent growth from Mar 2019 to Mar 2023. They began with sales of 750 in Mar 2019 and reached a high of 1,794 in Mar 2023, indicating a strong upward trend.
- Expenses Pattern: Corresponding to sales, expenses also rose from 700 in Mar 2019 to 1,586 in Mar 2023. However, the increase in expenses has been proportionately less than the increase in sales.
- Operating Profit: The company’s operating profit grew steadily over the years, moving from 50 in Mar 2019 to a remarkable 208 in Mar 2023.
- Operating Profit Margin (OPM %): There’s been a gradual improvement in the OPM % over the years, starting from 7% in Mar 2019 to reaching 12% in Mar 2023.
- Other Income: This remains relatively stagnant across the years, fluctuating between 2 to 9 with no consistent pattern.
- Interest & Depreciation: The interest cost for the company has seen a minor increment, moving from 38 in Mar 2019 to 48 in Mar 2023. Meanwhile, depreciation saw a minor decline until Mar 2022 and then a notable increase in Mar 2023.
- Profit Before Tax (PBT): Ugar Sugar witnessed a significant leap in PBT, starting from a mere 5 in Mar 2019 to 148 in Mar 2023.
- Tax Rate: The tax rate has seen fluctuations over the years. The highest being 31% in Mar 2023 and the lowest being 1% in Mar 2020.
- Net Profit: Reflecting the trend in PBT, the company’s net profit increased considerably, starting from 4 in Mar 2019 to 103 in Mar 2023.
- Earnings Per Share (EPS): The EPS shows an upward trajectory, which is an encouraging sign for shareholders. From an EPS of 0.39 in Mar 2019, it has increased to 9.16 in Mar 2023.
In summary, Ugar Sugar’s financials over the last five years depict a robust growth story, with increasing sales, operational efficiency (as seen from the OPM %), and an impressive rise in net profits. The steadily rising EPS also suggests a potential positive sentiment for shareholders.
Sugar Sector Overview
The sugar industry in India is highly regulated by the government, which influences sugarcane pricing, sugar production, distribution, and exports. The industry is also cyclical in nature, depending on the availability and quality of sugarcane, which is affected by weather conditions, pests, diseases, and irrigation facilities.
The sugar sector in India has been facing several challenges in recent years, such as surplus production, low domestic and international prices, high cane arrears, and mounting debts. The COVID-19 pandemic has also impacted the demand and consumption of sugar, especially from the industrial segment.
However, the government has taken various measures to support the sugar industry, such as providing subsidies for exports, ethanol blending, and buffer stock creation. The government has also announced a hike in the minimum selling price of sugar from Rs 31 to Rs 33.5 per kg to improve the cash flow of the mills.
The sugar industry in India is expected to witness a recovery in the coming years, driven by factors such as:
- Increasing domestic demand from the household segment due to rising population and income levels
- Growing demand for ethanol from the oil marketing companies to meet the blending targets
- Rising exports to the global markets due to favorable price parity and preferential trade agreements
- Diversification into value-added products such as specialty sugars, organic sugars, and bioplastics
- Adoption of new technologies and best practices to improve efficiency and productivity
Current Competitors of Ugar Sugar
Ugar Sugar Works Ltd. faces competition from various players in the sugar industry, both at the national and regional levels. Some of the major competitors are:
- Balrampur Chini Mills Ltd.: The largest integrated sugar company in India with a crushing capacity of 76,500 tonnes per day. It also has a distillery capacity of 520 kiloliters per day and a cogeneration capacity of 163.20 MW.
- Dhampur Sugar Mills Ltd.: The third-largest sugar company in India with a crushing capacity of 45,500 tonnes per day. It also has a distillery capacity of 400 kiloliters per day and a cogeneration capacity of 118 MW.
- Triveni Engineering & Industries Ltd.: The fourth-largest sugar company in India with a crushing capacity of 61,000 tonnes per day. It also has a distillery capacity of 320 kiloliters per day and a cogeneration capacity of 158 MW.
- Dwarikesh Sugar Industries Ltd.: A leading sugar company in Uttar Pradesh with a crushing capacity of 21,500 tonnes per day. It also has a distillery capacity of 100 kiloliters per day and a cogeneration capacity of 86 MW.
- EID Parry (India) Ltd.: A part of the Murugappa Group, one of the oldest business conglomerates in India. It has a crushing capacity of 34,750 tonnes per day across five plants in Tamil Nadu and Karnataka. It also has a distillery capacity of 234 kiloliters per day and a cogeneration capacity of 146 MW.
Growth Opportunities Ugar Sugar
Ugar Sugar Works Ltd. has several growth opportunities to leverage its strengths and expand its market share. Some of these are:
- Increasing its crushing capacity by modernizing its existing plants or acquiring new ones
- Enhancing its distillery capacity by setting up new units or upgrading its existing ones
- Exploring new markets for its ethanol products, such as potable alcohol, sanitizers, perfumes, etc.
- Developing new products from its by-products, such as bagasse-based paper, biofertilizers, biogas, etc.
- Investing in research and development to improve its product quality and innovation
- Adopting digital transformation to optimize its operations and customer service
Final Thoughts on Ugar Sugar Share Price Target 2023, 2024, 2025, 2030 and Long Term
To conclude, Ugar Sugar Works Ltd. is a leading sugar manufacturer in India with a strong track record and a promising future. The company has shown resilience and growth in the face of the challenges posed by the Covid-19 pandemic and the cyclical nature of the sugar industry.
The company has also diversified its product portfolio and explored new markets to enhance its profitability and sustainability. The company faces some risks and uncertainties that may affect its performance and prospects, but it has also taken steps to mitigate them and capitalize on the opportunities.
Based on our analysis, We have provided our Ugar Sugar Share Price Target 2023, 2024, 2025, 2030 and Long Term.
Please Note that this blog post is not a recommendation to buy or sell the Ugar Suagr Stock. Please consult your financial advisor before making any investment descisions.
