Rana Sugars Ltd - NSE · Public - Institutional shareholding 1.68% 1.68% 1.68% Public - Others...

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STAKEHOLDERS EMPOWERMENT SERVICES

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SECTOR: SUGAR REPORTING DATE: 1ST JUNE, 2016

Rana Sugars Limited www.ranagroup.com

Rana Sugars Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 18th Apr 2016)

NSE Code - RANASUG NSE Market Price (₹) 7.05 NSE Market Cap. (₹ Cr.) 108.27

Sector - Sugar Face Value (₹) 10.00 Equity (₹ Cr.) 153.57

52 week High/Low (₹) 8.35/2.10 Net worth (₹ Cr.) 182.55

Business Group - Rana TTM P/E N.A. Traded Volume (Shares) 8,12,352

Year of Incorporation - 1991 TTM P/BV 0.04 Traded Volume (lacs) 57.27

Source - Capitaline

Corporate Office: COMPANY BACKGROUND

SCO 49-50, Sector 8-C, Promoted by the Punjab Agro Industrial Corporation (28.6% equity stake) and Rana Gurjit

Singh and his associates (17.2%), Rana Sugars came out with a public issue in August 1993

to set up a 2500-tcd sugar plant along with captive power generation of 5 MW.

The main product of the Company is white crystal sugar which is used in households,

confectionery and pharmaceuticals. There are two by-products molasses and bagasse.

Molasses are used to manufacture alcohol and citric acid. Bagasse is used as a raw material

in the paper industry and also as fuel to generate steam and power.

Located in Punjab, the Company is at an advantage as Punjab is a sugar-deficit state. Also,

the yield per hectare in Punjab is satisfactory.

Madhya Marg,

Chandigarh – 160 009

Company Website:

www.ranagroup.com

TABLE 2 - PRICE PERFORMANCE

31st May, 2016

29th May, 2015

30th May, 2014

% Change CAGR for 2 years 2016 vs 2015 2015 vs 2014

Price (₹) 7.00 2.70 3.40 159.26% -20.59% 43.49%

Trading Volume (Shares) (yearly avg.)

6,07,561 1,38,889 1,20,939 337.44% 14.84% -

NSE Market Cap. (in ₹ Cr.) 107.5 41.46 52.21 159.29% -20.59% 43.49%

Source - Money Control

http://www.ranagroup.com/




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TABLE 3 - FINANCIALS

(₹ Cr.) 2015 2014 2013 % Change CAGR for 2

years 2015 vs 2014 2014 vs 2013

Net Worth 182.55 237.52 261.46 -23.14% -9.16% -16.44%

Current Assets 798.53 836.67 743.06 -4.56% 12.60% 3.67%

Non-Current Assets 511.11 499.51 506.03 2.32% -1.29% 0.50%

Total Assets 1,309.64 1,336.18 1,249.09 -1.99% 6.97% 2.40%

Investments 141.69 114.30 131.55 23.96% -13.11% 3.78%

Finance Cost 86.58 79.65 72.51 8.70% 9.85% 9.27%

Long Term Liabilities 244.39 245.18 241.05 -0.32% 1.71% 0.69%

Current Liabilities 882.71 853.48 746.58 3.42% 14.32% 8.74%

Turnover 697.90 647.91 703.68 7.72% -7.93% -0.41%

Profit After Tax (PAT, ₹ Cr.) -54.98 -23.94 5.41 N.A. -543% N.A.

EPS (₹) -4.00 -2.00 0.35 N.A. -671% N.A.

Source - Money Control/Annual Report

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have not made any qualifications in last 3 years, however they have

emphasised on the following matter in the Annual Report for FY 2014-15:

Emphasis of Matter in FY 2014-15:

“We draw your attention to Note No. 23.23 to the financial Statement which states that The Govt. of Uttar Pradesh has

announced Subsidy for Sugar Industry for the Season 2014-15 linked to average selling price of sugar and by-products during

the period 1st October 2014 to 31st May 2015. The Company has recognised such subsidiary of 31.87 Cr. And reduced the same

from the cane cost and the cane price payable based on present and expected likely average selling price.”

Response Comment

Frequency of Qualifications

The Auditors have not raised qualifications in last three years.

Have the Auditors made any adverse remark in last 3 years? No -

TABLE 4: BOARD PROFILE (As on 31st March, 2015)

Regulatory Norms Company

% of Independent Directors on the Board 50% 27%

% of Promoter Directors on the Board - 45%

Number of Women Directors on the Board Atleast 1 1

Classification of Chairman of the Board - Executive Promoter Director

Is the post of Chairman and MD/CEO held by the same person? - No

Average attendance of Directors in the Board meetings (%) - 50%

Source - Money Control/Annual Report

Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%

Independent Directors as the Chairman of the Board is an Executive Promoter Director. The Company as on 31st March, 2015

has 27% of Independent Directors and hence, it does not meet the regulatory requirement.

Board Diversity: The Company has 11 directors out of which 10 are male and 1 is female.


https://www1.nseindia.com/annual_reports/AR_8443_RANASUG_2014_2015_16092015131011.zip



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TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover 1.19 1.01 1.29 17.24% -21.27%

Debtors Turnover 12.15 10.90 12.23 11.45% -10.90%

Fixed asset Turnover 1.37 1.30 1.39 5.27% -6.72%

Current Asset Turnover 0.87 0.77 0.95 12.86% -18.23%

Ret

urn

Rat

ios Operating Profit Margin -11.65% -4.53% 0.86% N.A. -626.70%

Net Profit Margin -7.88% -3.69% 0.77% N.A. -580.60%

Return on Assets (ROA) -4.20% -1.79% 0.43% N.A. -513.67%

Return on Equity (ROE) -30.12% -10.08% 2.07% N.A. -587.12%

Return on Capital Employed (ROCE) 0.56% 5.32% 9.35% -89.44% -43.13%

Liq

uid

ity

Rat

ios

Current Ratio 0.90 0.98 1.00 -7.72% -1.51%

Quick Ratio 0.24 0.23 0.26 3.39% -12.07%

Cash Ratio 0.17 0.16 0.19 7.66% -13.08%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio 4.06 3.16 2.47 28.51% 28.13%

Interest Coverage Ratio 0.06 0.63 1.08 -90.38% -41.70%

Trad

ing

Rat

ios

Market Cap / Sales 0.15 0.16 0.14 -7.16% 8.61%

Market Cap/ Net Worth 0.56 0.43 0.39 30.11% 10.08%

Market Cap/PAT N.A. N.A. 18.85 N.A. N.A.

Market Cap/EBITDA 84.72 106.34 75.13 -20.33% 41.55%

Trading Volume (shares) (avg. of 1 year) 4,77,158 1,42,960 1,14,758 233.77% 24.57%

Trading Volume (shares) (high in 1 year) 85,83,839 10,12,789 14,11,093 747.54% -28.23%

Trading Volume (shares) (low in 1 year) 17,686 16,670 10,135 6.09% 64.48%

Ratio - High/low trading volume 485.35 60.76 139.23 698.86% -56.36%

Ratio - High/average trading volume 17.99 7.08 12.30 153.93% -42.39%

Source - Money Control




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TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Mar' 2016 Mar' 2015 Mar' 2014 Comments

Shar

eho

ldin

g

Promoter shareholding 22.64% 22.64% 22.64% No new equity shares were issued by the

Company during the two-year period from

Mar’2014 to Mar’2016. There was no

change in the promoter shareholding during

the said period. No other major change was

observed in the shareholding pattern during

the said period. The promoters have not

pledged any shares.

Public - Institutional shareholding 1.68% 1.68% 1.68%

Public - Others shareholding 75.68% 75.68% 75.68%

Non Promoter Non Public Shareholding

- - -

TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/bought any shares in last three years.

Preferential issue to promoters No preferential issue of shares was made to the promoters in last three years.

Preferential issue to others No preferential issue of shares was made to other shareholders in last three years.

GDRs issued by the Company The Company did not issue and GDRs in last three years.

Issue of ESOPs/Issue of shares other than Preferential allotment

The Company does not have any stock option scheme.

Source - Annual Report




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Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the

future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over

a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets




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Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover

Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a

Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp



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Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated

by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by

the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year


https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



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DISCLAIMER

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Stakeholders Empowerment Services

Contact Information

Stakeholders Empowerment Services

A 202, Muktangan,

Upper Govind Nagar,

Malad East,

Mumbai – 400 097

Tel +91 22 4022 0322

[email protected]

[email protected]

www.sesgovernance.com.

Research Analyst: Waheed Shaikh


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/

Rana Sugars Ltd - NSE · Public - Institutional shareholding 1.68% 1.68% 1.68% Public - Others...

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