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Ponni Sugars (Erode) Limited (PONNIERODE) Fair Value & Analysis

Consumer Defensive · IN · Market cap ₹3.6B (≈ $38.3M) · ISIN INE838E01017

What is Ponni Sugars (Erode) Limited really worth?

PS Ponni Sugars (Erode) Limited PONNIERODE · BSE
Price₹382.50
Fair Value₹558.03
Upside+45.9%
Quality59/100

A solid business, trading 31% below our fair value of ₹558.03.

As of Aug 23, 2026, the fair value of Ponni Sugars (Erode) Limited is ₹558.03 per share against a price of ₹382.50, so the fair value sits 46% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +10.1 %/yr)
!Thin margins · 6.2% net margin
!Narrow moat 35/100
Evidence: High Range ₹526.08 – ₹740.46

Fair value as of: Aug 23, 2026

From 24 valuation models · updated 14 days ago

Share price +18.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (₹526.08). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

₹572.29 ₹161.08 Fair Value ₹558.03 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹161.08 – ₹572.29 · fair‑value band ₹526.08 – ₹740.46 · the ₹382.50 price screens below the ₹558.03 fair value. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Ponni Sugars (Erode) Limited (PONNIERODE) currently trades at ₹382.50, while our model-based Fair Value estimate is ₹558.03, implying the stock looks roughly 31.5% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Consumer Defensive sector. Bull case: the Growth Earnings group reads highest at a median of ₹964.75 per share, and 20 of the 24 models we run sit above the ₹382.50 price. Bear case: the Economic Profit group reads lowest at ₹250.28, and 4 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Ponni Sugars (Erode) Limited generated revenue of ₹4.2B at a net margin of 6.2%. Revenue grew 30.8% year over year. It earns a return on equity of 3.3%. Net debt stands at ₹197M. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹526.08 (bear case) to ₹740.46 (bull case); at ₹382.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 53% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −43% fair-value upside, at 46%, PONNIERODE screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹13.11 per share, which is 2.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF ₹206.06 ₹344.14 ₹564.64 78
Growth DCF ₹205.77 ₹334.95 ₹535.58 77
Residual Income ₹548.56 ₹589.52 ₹678.95 76
All 24 models by family
DCF Models
FCF DCF ₹206.06 ₹344.14 ₹564.64 78
Owner Earnings ₹590.07 ₹988.02 ₹1,624 75
5Y Revenue Exit ₹254.61 ₹447.00 ₹704.73 71
5Y EBITDA Exit ₹328.97 ₹595.13 ₹923.24 73
5Y P/E Exit ₹596.58 ₹1,128 ₹1,725 69
10Y Revenue Exit ₹226.03 ₹398.56 ₹654.59 65
10Y EBITDA Exit ₹282.55 ₹502.63 ₹827.57 66
10Y P/E Exit ₹453.62 ₹877.14 ₹1,463 62
Earnings-Based
Graham-Dodd ₹379.84 ₹1,556 ₹2,118 64
Lynch FV ₹390.62 ₹558.03 ₹725.44 61
PEG = 1.0 ₹390.62 ₹558.03 ₹725.44 57
EPV ₹216.43 ₹250.28 ₹279.49 74
Multiples
P/E Multiple ₹879.78 ₹1,173 ₹1,466 63
P/S Multiple ₹579.16 ₹772.22 ₹965.27 58
P/B Multiple ₹712.20 ₹949.60 ₹1,187 55
EV/EBIT ₹402.38 ₹535.83 ₹669.29 66
EV/EBITDA ₹432.91 ₹576.54 ₹720.17 67
EV/Revenue ₹287.76 ₹410.23 ₹532.69 53
Asset-Based
NCAV (Graham) ₹330.37 ₹442.69 ₹660.74 54
Growth DCF
Growth DCF ₹205.77 ₹334.95 ₹535.58 77
Rev-Margin DCF ₹254.61 ₹442.21 ₹674.79 71
Economic Profit
Residual Income ₹548.56 ₹589.52 ₹678.95 76
ROIC Compounder ₹216.43 ₹250.28 ₹279.49 72
Growth Earnings
Growth-Adj P/E ₹675.32 ₹964.75 ₹1,254 67

Widest divergence: Growth Earnings (₹964.75) versus Economic Profit (₹250.28). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 12.7
P/S ratio 1.47 P/E × margin
EPS (TTM) ₹30.10 price ÷ EPS = P/E 12.7
Dividend yield 0.7% payout 9.1%
Net margin 11.6% FY2026
Return on equity 3.3% TTM
More key figures
Profitability
Return on assets (EBIT) 5.4% avg 5y
Operating margin 4.4% TTM
Growth
Revenue (TTM) ₹4.2B TTM
Revenue growth (YoY) +30.8% 3y avg −1.6%
EPS growth (YoY) +293%
Balance sheet & cash flow
Free cash flow ₹150M FY2026
Net debt ₹197M FY2020 · ≈ 1.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 72

Profitability 45
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Ponni Sugars (Erode) Limited engages in the manufacture and sale of sugar in India. It operates in two segments, Sugar and Co-generation. The company is involved in provision of bagasse and molasses; and cogeneration of power. It also exports its products.

Full company description

Ponni Sugars (Erode) Limited engages in the manufacture and sale of sugar in India. It operates in two segments, Sugar and Co-generation. The company is involved in provision of bagasse and molasses; and cogeneration of power. It also exports its products. The company 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹4.1B
Latest YoY
+15.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+11.1% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+10.4%
Dividend yield0.7%
Operating margin (EBIT) 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.9.0% (2021) → 6.5% (2026) · falling
Worst earnings drop59% (2025) · in INR
Revenue +9.5%/yr
FY22 ₹2.9B
FY23 ₹4.4B
FY24 ₹4.2B
FY25 ₹3.6B
FY26 ₹4.1B
Net income +13.2%/yr
FY22 ₹293M
FY23 ₹383M
FY24 ₹469M
FY25 ₹193M
FY26 ₹480M

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Cite: Fair Value Calculator (2026). "Ponni Sugars (Erode) Limited Fair Value". https://www.fairvalue-calculator.com/stock/PONNIERODE.BSE

Peer Group

Confectioners · 80 stocks

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.

Quality Score 59 · Above median
Fair Value upside +44% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 31% · Top 25%
Dividend yield (TTM) 0.7% · Bottom 25%

Valuation Multiples vs Confectioners median · lower = cheaper

P/E (TTM) 12.7× · Cheaper than median
P/B 0.64× · Cheaper than median
P/S (TTM) 0.86× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than median
EV/EBITDA 12.0× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Confectioners stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

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Mondelez International, Inc MDLZ $62.36 $27.36 −56%
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Barry Callebaut AG BARN CHF 1,115 CHF 711.91 −36%
ORION Corp 271560 124,600 KRW 203,315 KRW +63%
Tootsie Roll Industries, Inc TROLB $39.00 $22.21 −43%
Guangxi Yuegui Guangye Holdings 000833 ¥20.48 ¥9.09 −56%
Cloetta AB CLAB kr 54.85 kr 59.12 +8%
Balrampur Chini Mills Limited BALRAMCHIN ₹652.15 ₹318.59 −51%
PT Yupi Indo Jelly Gum Tbk YUPI 1,295 IDR 1,140 IDR −12%

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Frequently asked questions

Is Ponni Sugars (Erode) Limited (PONNIERODE) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ₹558.03 versus a price of ₹382.50, about +46% upside (undervalued).
What is the fair value of PONNIERODE?
Our model-based fair value for Ponni Sugars (Erode) Limited is ₹558.03 (as of Aug 23, 2026), built from audited fundamentals. The current price: ₹382.50.
What is the quality score of PONNIERODE?
Ponni Sugars (Erode) Limited has a Quality Score of 59/100. 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 ₹558.03 (as of Aug 23, 2026) from 24 valuation models. Cautious scenario ₹526.08, optimistic scenario ₹740.46. 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 ₹558.03, about +46% upside versus a price of ₹382.50 (undervalued). Cautious scenario ₹526.08, optimistic scenario ₹740.46. 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 ₹4.2B (latest available figure, as of Aug 23, 2026).
What is the net profit margin of PONNIERODE?
The net profit margin of Ponni Sugars (Erode) Limited is about 6.2%, meaning it keeps roughly 6.2% of revenue as net income. Based on the latest reported figures.
Does Ponni Sugars (Erode) Limited pay a dividend?
Ponni Sugars (Erode) Limited currently shows a dividend yield of about 0.71% relative to its recent price (as of Aug 23, 2026).
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