1. At a Glance
Magadh Sugar & Energy Ltd is that classic sugar stock which looks like a value investor’s wet dream on paper and a momentum trader’s nightmare on the chart. Market cap of roughly ₹630 crore, stock trading around ₹447, down ~21% over one year, while still coughing up a respectable 2.8% dividend yield like an old zamindar who refuses to change his ways.
Latest quarterly results (Q3 FY26) show revenue of about ₹297 crore, EBITDA of ~₹49 crore, and PAT of ~₹25 crore. QoQ profit growth looks sexy on a slide deck, but zoom out and you’ll notice the stock has quietly bled while peers have enjoyed sugar-cycle sugar rushes.
Valuation-wise, the company trades at ~7x earnings and ~0.78x book value. That’s not cheap, that’s “why is the market ignoring me?” cheap. ROE sits around 13–14%, debt-to-equity is a manageable ~0.4, and interest coverage is above 4x.
So why is the market sulking? Is this a misunderstood Bihar-based sugar cash machine… or just another cyclical darling that peaks when you finally notice it? Let’s peel the ganna layer by layer.
2. Introduction
Sugar stocks are like Indian weddings—loud, cyclical, emotionally charged, and always more complicated than they look. Magadh Sugar & Energy Ltd (MSEL) sits right in the middle of this drama. Incorporated in 2015, spun out of the old Nopany sugar empire, it operates three sugar mills, two distilleries, and cogeneration units, mostly in Bihar.
On paper, the business looks solid: integrated operations, ethanol exposure, power generation, improving balance sheet, and steady dividends. Yet the stock price behaves like it missed the memo. Over the last year, while sugar prices, ethanol blending narratives, and policy tailwinds were doing bhangra, Magadh Sugar quietly slipped into correction mode.
Is the market forward-looking and seeing something ugly? Or is it just bored because Magadh doesn’t tweet CAPEX dreams every quarter?
This article isn’t here to hype. It’s here to dissect—numbers first, sarcasm later. And trust me, there’s plenty of both.
3. Business Model – WTF Do They Even
Do?
At its core, Magadh Sugar is an integrated sugar manufacturer with three revenue engines:
1. Sugar
This is the big daddy—about 70–71% of FY24 revenue. The company crushes sugarcane, produces sugar, and generates by-products like molasses, bagasse, and press-mud. Crushing capacity is ~19,000 TCD across three mills in Bihar.
2. Distillery (Ethanol & Spirits)
This is where the government loves you. Two distilleries with combined capacity of ~150 KLPD produce denatured spirits and ethanol. Ethanol sales alone clocked ~467 lakh litres in FY24 with average realization of ~₹60 per litre. That’s decent monetization, not fantasy numbers.
3. Co-generation Power
Using bagasse (sugar waste, not political), Magadh generates power—~38 MW installed capacity. Some is consumed internally, some sold to the grid. It’s not a growth engine, but it helps squeeze value out of leftovers, like reheating yesterday’s dal and calling it “meal prep.”
Net-net: This is a textbook integrated sugar-ethanol-power model. No fintech pivot. No AI. Just ganna, alcohol, and electricity.
4. Financials Overview
Quarterly Comparison (Figures in ₹ Crore)
| Metric | Latest Qtr (Dec-25) | Same Qtr LY | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 296 | 284 | 324 | ~4% | -9% |
| EBITDA | 49 | 39 | 2 | ~26% | Big jump |
| PAT | 25 | 21 | -10 | ~24% | Massive |
| EPS (₹) | 17.8 | 15.0 | -7.3 | ~19% | LOL |
Annualised EPS (Q3 rule): Average of Q1, Q2, Q3 EPS × 4 → roughly aligns with TTM EPS ~₹61.
Witty Commentary:
QoQ numbers look like a Bollywood comeback story—last quarter was a disaster, this quarter is redemption. But YoY growth
