Bannari Amman Sugars - Amma Thuje Salaam!

Bannari Amman Sugars (BSE: 500041, NSE: BANARISUG) is a south India based sugar company.

I analyzed the financials early Jun-2012 when the stock was quoting at Rs.606.95. 

Across the last 10 years,
+ Sales increased 3.4 times (from Rs.348 crore to Rs.1181 crore)
+ Current Ratio is 2.65
+ Debt Equity Ratio is 0.72
+ Net profit increased 5.3 times (from Rs.19.7 crore to Rs.105.7 crore)
+ Was profitable each year
+ EPS increased 4.5 times (from Rs.20.62 to Rs.92.37), a CAGR of 9.69%
+ Book Value increased 4.8 times (from Rs.149.08 to Rs.712.43)
+ Uninterrupted dividends for the last 23 years
+ Promoter holding is 54.72%

Good financials and a Margin of Safety of 77%, at the then price of Rs.606.95.

Too sweet to say no, eh?

So, what did I do? Seeking the blessings of Bannari Amman Mother, I purchased ... and was aptly rewarded.



The stock moved to Rs.910 and I got 50% returns (between 10-Jun and 10-Aug) and sold my holdings. No longer attractive for me since the MoS is now below 50%.

Invictus.

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