1. At a Glance
A sugar stock that keeps oscillating between ethanol dreams and crushing capacity upgrades, Uttam Sugar Mills is trying to stay relevant in India’s volatile agro-industry. From distilleries to demerara, they’re in everything – but is the sweetness sustainable?
2. Introduction with Hook
If Willy Wonka ran a business in Uttar Pradesh, it would probably look like Uttam Sugar Mills Ltd. Except here, Oompa Loompas are replaced with farmers demanding higher cane prices, and chocolate rivers are ethanol pipelines.
- Market Cap: ₹1,109 Cr
- Stock Price: ₹290
- Crushing Capacity: Recently enhanced to 26,200 TCD
- Distillery Expansion: From 150 KLPD to 250 KLPD
So are we looking at a refined multi-product sugar player or just another cyclical sugar scrip with fancy announcements?
3. Business Model (WTF Do They Even Do?)
Uttam Sugar is into manufacturing:
- Consumer Sugars: Icing, liquid, brown, caster, bura, sulfur-free etc. (basically sugar for your chai to fancy cakes)
- Industrial Sugars: Pharma-grade, demerara, invert syrup etc.
- Power Generation: Bagasse-based electricity (sugar industry’s version of recycling)
- Distillery Products: Ethanol (thanks to India’s ethanol blending push)
With both B2B and B2C segments, their product range is sweet, but market pricing and input costs remain salty.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,059 | 2,047 | 1,793 |
| EBITDA (₹ Cr) | 245 | 266 | 215 |
| PAT (₹ Cr) | 124 | 132 | 91 |
| EPS (₹) | 32.41 | 34.67 | 23.92 |
| ROCE (%) | 19% | 18% | 12% |
| Debt (₹ Cr) | 594 | 761 | 775 |
Commentary:
- Sales are falling even after capacity expansions — that’s like adding gym equipment during Diwali and still gaining weight.
- PAT dropped by 31% YoY in FY25, clearly not the sugar high investors want.
5. Valuation
Let’s sweeten the pot with a fair value estimate:
- P/E Median of Peers: ~19x
- Uttam’s FY25 EPS: ₹23.92
- Fair Value Range = ₹330 to ₹400
EduInvesting Take: Currently trading at ₹290, it’s in the value zone. But don’t get diabetic on expectations. Capacity doesn’t equal consistent profits in this industry.
6. What’s Cooking – News, Triggers, Drama
- Distillery expansion (ethanol) = Govt tailwinds
- Acquisition of 52.9% in Uttam Distilleries = Vertical integration move
- Crushing capacity up to 26,200 TCD = Ambitious, but will demand matching cane supply
- Credit rating upgraded by CARE & Fitch = Green light from rating agencies
Still, no sugar rally is ever stable. Ethanol policy changes, MSP issues, and climatic shocks keep brewing.
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 38 | 38 | 38 |
| Reserves | 538 | 658 | 736 |
| Borrowings | 594 | 761 | 775 |
| Total Assets | 1,622 | 1,785 | 2,026 |
Takeaways:
- Borrowings jumped by ₹180 Cr in 2 years — more fuel for expansion or sugar-coated stress?
- Net worth rising but slowly — this mill’s machinery is working overtime, but returns aren’t on steroids.
8. Cash Flow – Sab Number Game Hai
| Cash Flow (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 158 | 33 | 113 |
| Investing | -50 | -137 | -60 |
| Financing | -110 | 102 | -53 |
| Net Flow | -2 | -2 | 0 |
Key Insight:
FY24 saw a cash crunch as OCF dipped sharply and capex spiked. They’re burning cash to grow — and the lighter is ethanol.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 19 | 18 | 12 |
| ROE (%) | 32 | 34 | 23.9 |
| Debt/Equity | ~1.1 | ~1.1 | ~1.05 |
| Inventory Days | 203 | 227 | 316 |
| CCC (Days) | 145 | 195 | 246 |
Conclusion:
Working capital is stretching like melted jaggery. CCC hitting 246 days is…not sweet.
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (₹ Cr) | 2,059 | 2,047 | 1,793 |
| EBITDA (₹ Cr) | 245 | 266 | 215 |
| EBITDA Margin | 12% | 13% | 12% |
| Net Profit (₹ Cr) | 124 | 132 | 91 |
Decoded:
Stable margins, dropping topline. Like a sugar cube in water — slowly vanishing unless stirred hard.
11. Peer Comparison
| Company | CMP (₹) | ROCE (%) | PAT 12M (₹ Cr) | P/E | OPM (%) |
|---|---|---|---|---|---|
| Balrampur Chini | 615 | 11.1 | 437 | 28.5 | 13 |
| Triveni Engg | 361 | 8.6 | 238 | 33.2 | 8.4 |
| Dalmia Bharat Sugar | 399 | 9.5 | 384 | 8.4 | 12.5 |
| Uttam Sugar | 290 | 11.8 | 91 | 12.2 | 12 |
EduVerdict:
Uttam’s valuations look cheap but profitability is lower vs top-tier peers. Still not in the Bajaj Hindusthan meltdown league (P/E N/A for a reason).
12. Miscellaneous – Shareholding, Promoters
- Promoters hold 74.39% (consistent + slight increase — confidence?)
- FIIs & DIIs barely visible. This stock is more “gaon ka IPO” than mutual fund darling.
- No. of shareholders increased from 24K (2022) to ~30K (2025) — retail loves sugar.
13. EduInvesting Verdict™
Uttam Sugar Mills is that kid who shows promise in sports, music, and debate… but never really tops anything. They’re upgrading capacity like there’s no tomorrow — distilleries, crushers, ethanol — but topline and margins have plateaued. And ROCE is now crawling.
It’s a case of “potential meets unpredictability” — can ethanol blending policies and new capacity yield sweet results? Or will debt and delays sour the story?
We don’t do buy/sell. But keep your glucose monitor on standby — this one’s got volatility written in bold.
Metadata
– Written by EduInvesting Research Desk | 18 July 2025
– Tags: Uttam Sugar Mills, Ethanol, Sugar Stocks, Agro Stocks, Capacity Expansion, Distillery, Smallcap India
