Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
Mawana Sugars Limited (MSL) manufactures and distributes sugar under its 'Mawana' brand, reaching both Indian and international markets. The company's operations are divided into three primary segments: Sugar, Power, and Distillery. Within its sugar division, MSL produces a range of products including plantation white, refined, and specialty sugars, alongside IP grade sugar specifically for pharmaceutical applications. Beyond sugar production, the company is involved in the cogeneration of electricity from bagasse. Its distillery arm focuses on manufacturing and supplying anhydrous and hydrous ethanol, covering rectified spirit, denatured spirit, and fuel ethanol. Additionally, it provides organic manure and fusel oil to various oil marketing companies. Initially incorporated in 1961 as Siel Limited, the company rebranded to Mawana Sugars Limited in January 2008. Its headquarters are situated in Gurugram, India.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITDA