XTRAS: In May, 2007, the company incorporated a subsidiary company with the aim of leveraging foreign business opportunities under the name of Bajaj Hindusthan (Singapore) Pte. Ltd....
SWOT ANALYSIS
Strengths
• Increase in Foreign Institutional Investing in the company.
• A considerable market share in a less colluded market.
• Immense growth potential due to new agricultural policies introduced.
• Sugar exports surpassed 5 million tonne mark in early August with Indonesia being the biggest buyer.
Weakness
• Cash generation via core business is on a lower side.
• High promoter stock pledges.
• Increasing debt is also a major area of concern.
• Low Piotroski score.
Oppurtunity
• With supporting government policies and increasing crop areas, India is expected to witness a peak in its sugar production during the forecast period.
• Under the Sugar Export Policy for Evacuation of Surplus Stocks during Sugar Season 2020-21 the government would be providing a lump sum assistance of Rs 6000 per metric tonne to sugar mills to facilitate the export
Threats
• Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)
• Increasing Trend in Non-Core Income
• Low durability industries.
FUTURE PROSPECTS
• The hopes of the end of pandemic seems to boost the demand and can help the company to recover.
• The company is India's largest ethanol producer and the pioneer of India's ethanol fuel programme. As India has increased the target of ethanol-blending with petrol to 20 per cent by 2023-24 and the ultimate goal is to have 100 per cent ethanol-run vehicles, the company has a great prospect in this field.
• It also produces environment-friendly Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from their bagasse waste which also has a great prospect.
❮
❯
