Ponni Sugars (Erode) Limited (PONNIERODE) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Ponni Sugars (Erode) Limited ₹434, price ₹372, upside +16.7%, quality 60 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range ₹183.92 – ₹571.53 · fair‑value band ₹291.93 – ₹613.46 · the ₹372.35 price screens below the ₹434.46 fair value. Dashed = 300-day average. As of Sep 27, 2026.
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Ponni Sugars (Erode) Limited manufactures and sells sugar in India. It operates through Sugar and Cogeneration segments. The company is involved in the provision of bagasse and molasses; and cogeneration of power. It also exports its products.
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Ponni Sugars (Erode) Limited manufactures and sells sugar in India. It operates through Sugar and Cogeneration segments. The company is involved in the provision of bagasse and molasses; and cogeneration of power. It also exports its products. Ponni Sugars (Erode) Limited was formerly known as SPB Sugars and Chemicals Limited and changed its name to Ponni Sugars (Erode) Limited in January 2000. Ponni Sugars (Erode) Limited was incorporated in 1996 and is based in Chennai, India.
Stock analysis
Ponni Sugars (Erode) Limited (PONNIERODE) currently trades at ₹372.35, while our model-based Fair Value estimate is ₹434.46, implying the stock looks roughly 14.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹977.41 per share, and 20 of the 25 models we run sit above the ₹372.35 price.
Bear case: the Economic Profit group reads lowest at ₹164.35, and 5 of the 25 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹291.93 (bear) to ₹613.46 (bull), the price of ₹372.35 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Consumer Defensive sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Ponni Sugars (Erode) Limited reported revenue of ₹4.1B in FY2026 versus ₹2.9B in FY2022, a compound +9.5%/yr. Reported net income was ₹480M in FY2026, compounding +13.2%/yr from FY2022.
Key figures
Market cap ₹3.2B (≈ $33.2M) · P/E ratio 6.7 · P/S ratio 0.77 · EPS (TTM) ₹55.84 · Dividend yield 1.3% · Net margin 11.6% · Return on equity 8.7% · Return on assets (EBIT) 6.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 47% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −41% fair-value upside, at 17%, PONNIERODE screens cheaper than that median.
Fair Value models
Bear ₹291.93Fair Value ₹434.46Bull ₹613.46
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹25.77 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.4%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.10.4% vs 18.8%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 6%
Start year 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+2.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about −2.0% a year for the price.
Compare Ponni Sugars (Erode) Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Confectioners · 84 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Top 25%
Fair Value upside+16.7% · Above median
Profitability
Return on equity (TTM)8.7% · Above median
Return on assets2.5% · Below median
Net margin (TTM)11.6% · Top 25%
Operating margin (TTM)16.7% · Top 25%
Growth and dividend
Revenue growth−5.2% · Below median
Dividend yield (TTM)1.3% · Below median
Valuation Multiplesvs Confectioners median · lower = cheaper
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Is Ponni Sugars (Erode) Limited (PONNIERODE) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of ₹434.46 versus a price of ₹372.35, about +17% upside (undervalued).
What is the fair value of PONNIERODE?
Our model-based fair value for Ponni Sugars (Erode) Limited is ₹434.46 (as of Sep 27, 2026), built from audited fundamentals. The current price: ₹372.35.
What is the quality score of PONNIERODE?
Ponni Sugars (Erode) Limited has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ponni Sugars (Erode) Limited (PONNIERODE)?
Our model-based price target is the fair value of ₹434.46 (as of Sep 27, 2026) from 25 valuation models. Cautious scenario ₹291.93, optimistic scenario ₹613.46. It is a calculation from audited fundamentals, not an analyst target.
What is the Ponni Sugars (Erode) Limited stock forecast for 2026?
Our models put fair value at ₹434.46, about +17% upside versus a price of ₹372.35 (undervalued). Cautious scenario ₹291.93, optimistic scenario ₹613.46. The calculation is refreshed regularly with new filings.
What is the revenue of Ponni Sugars (Erode) Limited (PONNIERODE)?
Ponni Sugars (Erode) Limited reported trailing-twelve-month revenue of about ₹4.1B (latest available figure, as of Sep 27, 2026).
Does Ponni Sugars (Erode) Limited pay a dividend?
Ponni Sugars (Erode) Limited currently shows a dividend yield of about 1.34% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Ponni Sugars (Erode) Limited (PONNIERODE)?
For today's price to be fair in a discounted-cash-flow model, Ponni Sugars (Erode) Limited would have to grow free cash flow by +2.1 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.1 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of PONNIERODE use?
Our models discount Ponni Sugars (Erode) Limited at 10.9 %: a base by market capitalisation (nano), damped by beta 0.06, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ponni Sugars (Erode) Limited that is +2.1 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Ponni Sugars (Erode) Limited (PONNIERODE) delivered so far?
Over the past 5 years revenue at Ponni Sugars (Erode) Limited grew +10.1 % a year. The price currently implies +2.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ponni Sugars (Erode) Limited (PONNIERODE) growing?
The median revenue growth in the sector is +3.0 % a year. That is the yardstick for the growth priced into Ponni Sugars (Erode) Limited (+2.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ponni Sugars (Erode) Limited (PONNIERODE)?
The free-cash-flow yield on the price is 7.35 %: that much free cash flow Ponni Sugars (Erode) Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ponni Sugars (Erode) Limited (PONNIERODE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ponni Sugars (Erode) Limited it is ₹434.46 per share (as of Sep 27, 2026), against a price of ₹372.35. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Ponni Sugars (Erode) Limited stock overvalued or undervalued in 2026?
As of Sep 27, 2026, PONNIERODE trades below its calculated fair value: price ₹372.35, fair value ₹434.46, a gap of about +17% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PONNIERODE?
No. The price is what the market pays today (₹372.35); the fair value is what the company's own numbers justify (₹434.46). For Ponni Sugars (Erode) Limited the two are ₹62.11 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ponni Sugars (Erode) Limited worth?
The market values Ponni Sugars (Erode) Limited at about ₹3.2B (market capitalisation, as of Sep 27, 2026). Per share that is ₹372.35; our models calculate a fair value of ₹434.46 per share.
What do the bullish and bearish scenarios say about PONNIERODE?
Our models span a range for Ponni Sugars (Erode) Limited: cautious scenario ₹291.93, base ₹434.46, optimistic ₹613.46 per share (as of Sep 27, 2026, price ₹372.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PONNIERODE?
Ponni Sugars (Erode) Limited trades at a price-to-earnings ratio of 6.7 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹434.46 is built from several models across several years. Other multiples: P/B 0.6, P/S 0.8, EV/EBITDA 8.9.
How solid is the balance sheet of Ponni Sugars (Erode) Limited (PONNIERODE)?
Balance-sheet figures for Ponni Sugars (Erode) Limited (as of Sep 27, 2026): return on equity 8.7%. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is PONNIERODE from its 52-week high?
Ponni Sugars (Erode) Limited trades at ₹372.35, about 12% below its 52-week high of ₹421.85 and 47% above the low of ₹252.56 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹434.46 is for.
Which stocks are comparable to Ponni Sugars (Erode) Limited?
From the same area (Consumer Defensive) we also value Mondelez International, Inc, The Hershey Company, Chocoladefabriken Lindt & Sprüngli AG, Barry Callebaut AG, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ponni Sugars (Erode) Limited stock attractive at the current price?
The data as of Sep 27, 2026: price ₹372.35, calculated fair value ₹434.46 (+17%), Quality Score 60/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PONNIERODE calculated?
We run Ponni Sugars (Erode) Limited through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹434.46, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Ponni Sugars (Erode) Limited currently trades 14 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ponni Sugars (Erode) Limited (PONNIERODE)?
The closing price on Oct 1, 2026 was ₹372.35. Our model-based fair value is ₹434.46, about +17% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ponni Sugars (Erode) Limited right now?
A fairly wide model range (₹291.93 to ₹613.46) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Ponni Sugars (Erode) Limited (PONNIERODE) come from?
Earnings per share at Ponni Sugars (Erode) Limited grew +19.2 % a year from 2016 to 2026. Broken into its drivers: revenue per share +7.8 %, EBIT margin +4.3 %, tax rate −0.6 %, residual (interest, one-offs) +6.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Ponni Sugars (Erode) Limited
How large is the market capitalisation of Ponni Sugars (Erode) Limited (PONNIERODE)?
The market capitalisation of Ponni Sugars (Erode) Limited is ₹3.2B (≈ $33.2M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ponni Sugars (Erode) Limited (PONNIERODE)?
The price-to-sales ratio of Ponni Sugars (Erode) Limited is 0.77 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ponni Sugars (Erode) Limited (PONNIERODE)?
Earnings per share at Ponni Sugars (Erode) Limited are ₹55.84 (price ÷ EPS = P/E 6.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Ponni Sugars (Erode) Limited (PONNIERODE)?
The dividend yield of Ponni Sugars (Erode) Limited is 1.3% (payout 9.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Ponni Sugars (Erode) Limited (PONNIERODE)?
The net margin of Ponni Sugars (Erode) Limited is 11.6% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ponni Sugars (Erode) Limited (PONNIERODE)?
The return on equity (ROE) of Ponni Sugars (Erode) Limited is 8.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ponni Sugars (Erode) Limited (PONNIERODE)?
On an EBIT basis the return on assets of Ponni Sugars (Erode) Limited is 6.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ponni Sugars (Erode) Limited (PONNIERODE)?
The operating margin of Ponni Sugars (Erode) Limited is 16.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ponni Sugars (Erode) Limited (PONNIERODE)?
Revenue at Ponni Sugars (Erode) Limited is growing −5.2% versus a year earlier (3y avg −1.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ponni Sugars (Erode) Limited (PONNIERODE)?
Earnings per share at Ponni Sugars (Erode) Limited are growing +489% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Ponni Sugars (Erode) Limited (PONNIERODE) hold?
Ponni Sugars (Erode) Limited holds more cash than debt, ₹21.6M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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