CMP: 85

Ponni Sugars (Erode) Limited produces sugar for domestic and international markets. The Company also supplies sugarcane bagasse for the production of newsprint.

Ponni Sugars is a 73 Crore penny cap stock. Its currently trading at a P/E of 6 with strong dividend yields of well over 2% in the last 12 months. It runs at a debt of 16 Crores with 2 Crores cash in hand. Revenues have risen steadily from 140 Crores to 270 Crores in the last 5 years. Profits have risen from 5 Crores to 19 Crores over the last 5 years. NPM has risen from less than 4% to almost 7% in the last 5 years. Buy and hold for long term gains.