At a Glance
Indian Sucrose Ltd is a Punjab-based sugar miller with a 30+ year legacy, manufacturing sugar, molasses, bagasse, and power. Despite consistent profits, solid ROE (16.3%), and dirt-cheap valuation (P/E 5.1x), the company refuses to reward shareholders with dividends or FMCG ambitions. And yet, the stock has compounded 37% over 5 years. So… what gives?

1. 🪜 Introduction – Sugar Daddy or Just Dusty?

Indian Sucrose is one of those “boring but stable” sugar companies you’d never hear about on CNBC — unless it randomly hits upper circuit.

While peers like Balrampur or Dalmia Bharat Sugar bask in ethanol hype and FMCG dreams, Indian Sucrose sticks to the basics: crush cane, extract sugar, burn bagasse for power. Rinse, repeat, and maybe sneak into the petroleum biz (more on that later).

2. 🏭 WTF Do They Even Do?

Here’s the company’s revenue masala:

• Sugar – core product (duh)
• Molasses – by-product used in distilleries
• Bagasse – burnt to generate captive power
• Power – excess sold to grid = additional revenue
• Now a petrol pump?! – Yes. Opened commercial fuel retail unit in June 2025.

They’re a fully integrated sugarcane value extractor. Think of them as a factory that doesn’t waste anything — except, maybe, dividend payout potential.

3. 📊 Financials – Steady & Sweet

No big jumps. No shocking collapses. Just sugar mill stability.

4. 💸 Valuation – Is It Cheap, Meh, or Crack?

• CMP: ₹113
• EPS (FY25): ₹22.09
• P/E: 5.1x
• Book Value: ₹148 → P/B = 0.76x

🧮 Fair Value Range: ₹140 – ₹175

Based on 6x–8x earnings, consistent ROE >15%, and relative undervaluation vs sugar peers.

It’s trading at crash-sale valuation. This is either the bargain of the season… or a sugar-coated value trap.

5. 🚨 What’s Cooking – Ethanol? Nope. Petrol Pump.

Let’s recap FY25 headlines:

• 🚗 Petrol Pump Launch: ₹2 Cr investment at Punjab unit, commercial ops started June 2025.
• 🧾 Regulatory update: Amended code for UPSI (Unpublished Price Sensitive Info) – new disclosure norms.
• ❌ Still no dividend.
• 🏭 Sugar cycle tailwind helping margins.

While peers ride ethanol & FMCG stories, Indian Sucrose just… sells petrol now. Because why not?

6. 📉 Balance Sheet – How Much Debt, How Many Dreams?

Balance sheet is not scary. Slightly leveraged but manageable. Reserves growing steadily. And no major capex madness.

7. 💵 Cash Flow – Sweet Numbers

The ₹81 Cr investing cash inflow likely includes asset sales or investment redemptions — check needed in AR.

But positive operating cash flow year after year = healthy business operations.

8. 📊 Ratios – Sexy or Stressy?

Apart from rising debtor days, it’s a strong ratio profile. Definitely above sugar-sector median.

9. 💰 P&L Breakdown – Show Me the Money

• Sugar sales make up >90% revenue.
• Power segment gives stable but small revenue.
• OPM consistent ~13%
• Net Profit growing: ₹30 → ₹33 → ₹38 Cr
• No wild one-offs or “other income” dependence.

It’s boring, but beautifully boring.

10. 🧾 Peer Comparison – Who’s the Sweeter Deal?

11. 👨‍👩‍👧‍👦 Misc – Promoter Holding & Secrets

• Promoter Holding: 64.48% – stable and unchanged
• FII/DII: Non-existent
• Retail Public: 35.5%
• Shareholders: 20,000+ – niche cult following?

Bonus Drama: Not a whisper of dividend payout since inception. Your sugar is sweet. Your capital gain better be sweeter.

12. 🧠 EduInvesting Verdict™

“A sugar stock that gives no sugar to shareholders.”

• ✅ Stable earnings
• ✅ Solid ROE/ROCE
• ✅ Ridiculously cheap
• ❌ No dividends
• ❌ No ethanol/green fuel push
• ❌ Petrol pump feels like a distraction

💡 If this were listed on SME, it would’ve been at ₹280 by now. But because it’s BSE mainboard, nobody cares.

If management wakes up and:

• Gives dividends OR
• Does a small buyback OR
• Launches ethanol/chemicals,

…this could re-rate faster than your chai gets cold.

✍️ Written by Prashant | 📅 July 3, 2025
Tags: Indian Sucrose, Sugar Stocks India, Cheap Sugar Company, Petrol Pump Stock, High ROE Low PE, Punjab Sugar Mills, EduInvesting, Value Stock, Multibagger Watchlist, FY25 Sugar Earnings