UR Sugar (539097)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Book value of ₹3.73 per share provides a base of net assets, though the price is well above it.
• Trailing P/E of 23.49 implies the company is still earning something on an annual basis, not a perpetual loss-maker.
• ROE and ROCE are positive at 3.04% and 3.08%, so capital is at least not being destroyed outright.

Concerns

• Latest quarter has zero sales and zero net profit, a serious red flag for a trading/distribution company.
• Sales growth is 0.00% and profit growth is -11.11%, showing no growth momentum and declining earnings.
• P/E of 23.49 and P/B of 3.74 offer no margin of safety for a business earning 3% ROE, especially at the 52-week high of ₹13.95.
• Piotroski F-Score of 3/9, zero dividend, and missing promoter/debt data add uncertainty about financial health and governance.

AI Analysis

I start this analysis with caution. A trading and distribution business without pricing power or a brand rarely earns a durable moat, and the numbers confirm my unease. UR Sugar's return on equity is just 3.04%, and ROCE is only 3.08%. For that level of profitability, I would want a meaningful discount to book value, not the current price of ₹13.95 against book value of ₹3.73. That is 3.74 times book. The trailing P/E of 23.49 on a market cap of ₹73 Cr implies roughly ₹3.1 Cr of annual earnings, but those earnings are already falling: profit growth is -11.11% while sales growth is 0.00%. More troubling, the latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. In my experience, a zero quarter can mean seasonality, but for a small trading company it raises serious going-concern questions. The Piotroski F-Score of 3 out of 9 also tells me the financial health is weak. There is no dividend, so the minority shareholder must rely solely on price appreciation, which is a dangerous expectation in a business earning only 3% on equity. Mr. Market is offering this stock at its 52-week high of ₹13.95, leaving no margin of safety. I cannot find an economic moat, growth is absent, profits are declining, and the price is expensive. This is not a franchise I would buy with my own money, nor with yours. Price is what you pay; value is what you get. Here, I see very little value. The FairStock score is unavailable due to insufficient data, and that itself is a warning. I would pass and wait for either a dramatically lower price or real proof that earnings and cash flows are returning.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer