Agreed on your observation, Sugar is cyclical, Govt interference business and farmers dependent!!! Our goal is to identify the sector top performing company now and in the future!!!

Problem statement was address by management: Our focus is to restore normalcy in our sugar operations, and we are vigorously working in this direction –uprooting infected crop, substituting vulnerable varieties with more robust varieties, enhancing yields and step up surveillance to get early warning of any challenges to our crop. We have undertaken curative control measures to contain and control the spread of red-rot disease, that affected our operations in previous season.

Now we (Investor) can check on every quarter: We continue to focus on premium products such as refined sugar and pharmaceutical-grade sugar (now contributing to 70% of overall sugar production) to further improve the profitability profile of the Company.”

If they are doing good work under this direction, then advantage of removing cyclicality, Govt interference and pricing pressure.

Equity dilution is very normal for a high growth small financial companies. Without a significant equity raise they cannot raise debt and hence cannot lend.

Equity can only be raised by equity dilution. When Ugro reaches a sustainable 17-18% ROE, the need of equity raise will decreases drastically. Ugro foresee to reach that ROE level in the next 2-3 yrs.

As an example Bajaj finance raised equity via dilution continuously between 2012 to 2019, and later the speed got decreased drastically.

However, I do agree with you that the dilution really hurt the EPS growth. The problem is we are in the high interest rate environment wherein NBFC sector is not at all performing, this is visible in the share price of most of the NBFCs. As a result, more dilution is need to raise the equity. Having said that, with good financial performance the market will realize the potential of this company and reward by appreciating the stock price, as a result the next equity raise (after 10quarters) will be at the higher stock price and will leads to less dilution.

When all the managements’ materialize and operating leverage kicks in the PAT will increase drastically and will negate the ill effect on EPS growth. For example the PAT increased by 200% from fy23 to fy24, whereas the EPS grew by 128% in the same period.

Summary: Raising capital via equity dilution is the nature of the business and not capital mismanagement or anything else. Management is using capital very efficiently and this is clear from their strategies, rest their future results need to be checked diligently.

Disc- Invested

I was going through the list of hotels that the company had declared that they’ll open in 2024 along with the commencement date. We can see that there are 2 hotels that are still not opened. They’re supposed to share the status by Sep-24 which will probably be the next concall.

My source for searching is mostly travel websites and company website:

South Indian Bank Q1 Result Analysis in Tamil

POL promoters, the Turakhia brothers are immensely experienced and well reputed. This capex in fermentation API by 300 CR market cap company is no mean feat. This company is bound to be rerated fabulously much before the ongoing capex which has lowered it’s return ratios, will start yielding fruits.

It also has quite a decent OTC portfolio for e-commerce… protein supplements and all. It’s a story worth tracking in microcap pharma space.