1.At a Glance
Bajaj Hindusthan Sugar Ltd (BHSL) is India’s sugar behemoth by capacity — 14 mills crushing 136,000 tonnes/day, six distilleries producing 800 KLPD, and 449 MW of co-gen power. On paper, it’s a powerhouse; in practice, it’s a patient in the debt ICU. FY25 revenue was ₹5,575 Cr with a ₹132 Cr loss, ROCE a sleepy 1.14%, and ROE in the negative zone. Stock trades at0.69× book value, but promoters have pledged 100% of their 24.96% stake — a financial “all in” without the poker face.
2.Introduction
Born in 1931, Bajaj Hindusthan was once the pride of India’s sugar belt. Fast forward to now, and the company’s storyline reads like a Bollywood tragedy — large empire, high capacity, big debt, and intermittent profits. It’s diversified into ethanol and power, but debt servicing and volatile sugar cycles keep the party from lasting.
The stock has had its share of adrenaline — a 5-year CAGR of 31% in price — but FY25 brought a 42% drop. Shareholders are watching, wondering if this is the bottom… or just a pit stop.
3.Business Model (WTF Do They Even Do?)
BHSL makes money from:
- Sugar– The core; price-controlled, cyclical, politically sensitive.
- Ethanol & Alcohol– Distillery output for blending and industrial uses.
- Power Generation– 14 co-gen plants using bagasse from sugar production.
Margins depend heavily on
government cane price policies, ethanol blending programmes, and monsoon moods.
4.Financials Overview
TTM Performance:
- Revenue: ₹5,438 Cr (down 11% YoY)
- EBITDA: ₹235 Cr (margin 4%)
- PAT: -₹132 Cr
- ROCE: 1.14% | ROE: -0.34%
Debt: ₹3,575 Cr (down from ₹3,840 Cr in FY24 — slow deleveraging, but still massive).Interest cost for FY25: ₹103 Cr — lower than past years but still a drag.
5.Valuation (Fair Value Range)
| Method | Calculation | FV (₹) |
|---|---|---|
| P/B Method | Book value ₹33 × 0.7–1.0 | 23 – 33 |
| EV/EBITDA | EBITDA ₹235 Cr × 6–8 | 18 – 24 |
| DCF | 5% growth, 14% discount rate | 17 – 25 |
Fair Value Range:₹18 – ₹25This FV range is for educational purposes only and is not investment advice.
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26 Loss:₹174 Cr net loss; OPM -2%.
- Debt Service Pressure:Continued repayments; interest coverage still anaemic.
- Policy Watch:Any ethanol pricing hike or cane
