Investment Rating

• Master Rating:

• Davangere Sugar Company has an operating revenue of Rs. 130.23 Cr. on a trailing 12-month basis. An annual revenue de-growth of -16% needs improvement, Pre-tax margin of 5% is okay, ROE of 2% is fair but needs improvement. The company has a reasonable debt to equity of 44%, which signals a healthy balance sheet. The stock from a technical standpoint is comfortably placed above its key moving averages, around 9% and 9% from 50DMA and 200DMA. From an O'Neil Methodology perspective, the stock has an EPS Rank of 60 which is a FAIR score but needs to improve its earnings, a RS Rating of 92 which is GREAT indicating the outperformance as compared to other stocks, Buyer Demand at C- which is evident from recent supply seen, Group Rank of 124 indicates it belongs to a poor industry group of Agricultural Operations and a Master Score of D is close to being the worst. Overall, the stock has some relative strength and buyer demand but we want to see further fundamental performance to qualify as a growth stock.