About The Company
Ponni Sugars is a small company in its field but the management is doing well.ICICI Bank Limited has withdrawn their Nominee Director, Mr K J Rajasimha from the Board of Directors of Ponni Sugars and nominating in his place Mr. Manas Ranjan Pani as their Nominee Director.
Its current results throws a light on the expectations of other sugar results.It may be noted that sugar prices were firm during July – September 08, quarter and hence all the companies are going to present healthy results. However, from mid September, sugar prices have started softening and the trend is likely to remain the same till end of calendar year, as crushing season would be starting soon in Maharashtra and U.P. But due to lower production of about 20 million tonnes expected in season 08 – 09, sugar prices would rise form March 09.
About The Results
Total income of the company during the quarter is at Rs.33.76 crores against Rs.40.26 crores in the corresponding quarter of previous year. PAT for the quarter is at Rs.3.10 crores (against a loss of Rs.2.39 crores) and a net loss of Rs.1.88 crores in FY 08. This is after booking Rs.1.65 crores, being increase in cane price, effective from 1st October 07.During the quarter, the company issued 40 lakh equity shares at Rs.50 per share, by converting preference share capital, due to which paid up equity of the company rose to R.8.60 crores.EPS of the company for the quarter is at Rs.3.64 while for H1 of FY 09, it is at Rs.2.50. This is because; the company had its bottomline in red for June 08 quarter, at Rs.1.02 crores.
About The Stock
The stock is trading near its 52 week low.Though the stock is small in its sector but if sugar sector leads the rally the stock has the capacity to reward there stake holders.
Disclaimer : I do not have any personal holding in this stock.