Hem Securities has come out with its report on Vishwaraj Sugar Industries. The research firm has recommended to "Avoid'' the IPO in its research report as on September 26, 2019.
Company is engaged in the business production of sugar and manufacture of other products including Distillery (Spirits) products, Indian Made Liquor, Vinegar, other by-products and also in the generation of power. Company have a total licensed sugarcane crushing capacity of 11,000 TCD and installed sugarcane crushing capacity of 8,500 TCD. Company sell its manufactured sugar to various wholesalers, stockists and also to several FMCG companies throughout the country, who use sugar for manufacture of various biscuits, confectionery and beverages.
Valuation and OutlookAlthough company has experienced promoters and strong executive team with wide range of products & has integrated operations with economies of scale but loss incurred by company is major concern .
Hence at present level we recommend “Avoid” on issue .
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