About Kesar Enterprises
Kesar Enterprises Limited is a storied name in the Indian sugar industry, established in 1933. The company operates an integrated business model focused on manufacturing sugar, ethanol, spirits, and generating power through a high-efficiency, bagasse-based cogeneration plant.
Despite its long history, the company is currently navigating a period of significant financial distress. The stock price, hovering around ₹6.38, is near its 52-week low of ₹5.98, a stark contrast to its yearly high of ₹14.87. This volatility underscores the market’s uncertainty about its future.
A core part of the company’s stated mission is to enhance corporate performance and maximize long-term shareholder value through transparency and operational efficiency. A recent operational highlight was crushing 94.24 lakh quintals of sugarcane with a recovery rate of 10.81% in the 2023-24 season. The company is also poised to benefit from the Indian government’s policy push for ethanol blending, particularly for production from B-heavy molasses and cane juice.
However, this potential is overshadowed by severe fundamental weaknesses. The company reports a negative book value per share of -₹16.76, a negative Return on Equity (ROE) of -77.48%, and consistent quarterly losses, as evidenced by a negative EPS of -6.69. With a market capitalization of just ₹64 Crores, Kesar Enterprises presents a classic case of a micro-cap, high-risk potential turnaround play.
Table of Contents
Kesar Enterprises Share Price Target (2026 – 2035)
| Year | Projected Price Range (₹) | Key Drivers & Critical Assumptions for the Period |
|---|---|---|
| 2026 | ₹5.50 – ₹8.50 | Range-bound volatility. Price action is likely to be trapped between the Lower Circuit (₹5.11) and Upper Circuit (₹7.65), reacting to quarterly results and sugarcane yield reports. No fundamental recovery is assumed. |
| 2027 | ₹6.00 – ₹12.00 | The Speculation Phase. Increased variance as traders bet on a potential turnaround. The upper range requires early signs of operational breakeven or a favorable policy announcement for the ethanol division. |
| 2028 | ₹8.00 – ₹16.00 | The Recovery Test. This is a critical year. The upper target depends on the company reporting sustained quarterly net profits, leading to a re-rating. Failure to do so could see prices fall back to the lower range. |
| 2029 | ₹10.00 – ₹20.00 | Consolidation or Growth. If profitability is maintained, the stock begins to attract longer-term interest. The price may consolidate gains and build a base for further growth, supported by ethanol revenues. |
| 2030 | ₹12.00 – ₹25.00 | Sector Alignment. Successful execution could see the stock’s valuation begin to narrow the gap with healthier peers. The P/E ratio (currently negative) would transition to a positive figure, aligning closer to the Industry P/E of 30.62. |
| 2031 | ₹14.00 – ₹30.00 | Debt & Equity Health. Further price appreciation hinges on using profits to steadily improve the balance sheet—reducing debt and working towards a positive book value per share. |
| 2032 | ₹16.00 – ₹36.00 | Sustainable Operations. The company must demonstrate it can thrive beyond a single good season. Efficient cogeneration and stable ethanol margins become key valuation pillars. |
| 2033 | ₹18.00 – ₹43.00 | Market Share & Scale. Growth assumptions include the company capturing incremental market share in its operational regions and potentially scaling up capacity. |
| 2034 | ₹20.00 – ₹51.00 | Renewed Institutional Interest. A clean, profitable balance sheet could attract the attention of Domestic Institutional Investors (DIIs), who currently hold only 1.73%. |
| 2035 | ₹22.00 – ₹60.00 | Long-Term Integration. The upper end of this decade-long target assumes Kesar Enterprises has successfully transformed into a stable, integrated sugar and bio-energy player. |
Financial Health
To interpret the price targets above, one must understand the starting point. The company’s fundamentals present a high-risk profile.
Critical Fundamental Metrics
- Market Cap: ₹64 Cr (Micro-Cap) | Current Price: ~₹6.38
- ROE: -77.48% (Shareholder value destruction) | Book Value/Share: -₹16.76 (Technical insolvency)
- P/E Ratio: -0.95 (Loss-making) | Debt to Equity: 0.10 (Low debt is a positive)
- Promoter Holding: 70.73% (High, indicates skin in the game)
- DII Holding: 1.73% | FII Holding: 0.00% (No institutional confidence)
The Bull Case (Path to Upper Targets):
The pathway to the upper price ranges is narrow and challenging. It requires:
- A return to consistent profitability is needed to fix the negative ROE and EPS.
- Monetization of the ethanol opportunity was spurred by government policy.
- Utilization of the efficient cogeneration plant to maximize power sales.
- Gradual improvement in book value from deeply negative to positive territory.
- Sustained high promoter holding to signal commitment during the turnaround.
The Bear Case (Risk of Lower Targets/Zero):
The more probable scenario if execution fails includes:
- Continued operational losses are eroding the remaining equity.
- Inability to benefit from sector tailwinds due to internal inefficiencies or high cost structure.
- Micro-cap illiquidity and volatility, with prices frequently hitting lower circuits.
- The perpetual “turnaround story” that never materializes, leading to further price decline or delisting.
Shareholding Pattern
| Category | Holding % (Sep ’25) |
|---|---|
| Promoters | 70.73% |
| Retail & Others | 27.53% |
| Other Domestic Institutions | 1.73% |
Peers Comparision
Comparing Kesar Enterprises to its peers highlights the scale of its challenge:
| Company | Market Price (₹) | P/E Ratio | Note |
|---|---|---|---|
| EID Parry (India) | ~1,011.20 | 8.21 | Large, diversified, and profitable. |
| Balrampur Chini Mills | ~438.55 | 21.89 | Efficient operator with strong margins. |
| Triveni Eng. | ~381.20 | 32.95 | Strong engineering and sugar business. |
| Shree Renuka Sugars | ~26.34 | -7.54 | Also loss-making, but at a different scale. |
| Kesar Enterprises | ~6.38 | -0.95 | – |
Frequently Asked Questions (FAQs)
Q1: Is Kesar Enterprises a good buy for the long term?
A1: It is not a “good buy” in the traditional sense. It is a very high-risk, speculative investment suitable only for investors who understand the sugar sector, can tolerate extreme volatility, and are prepared for the possibility of a total loss. It is a pure “turnaround bet.”
Q2: What is the most important thing to watch in the coming quarters?
A2: Quarterly Net Profit/Loss. The single most critical metric is the company’s ability to move from the current “Profit” column of -13.88 Cr (Sep ’25) towards breakeven and then profitability. Consistent profits are the non-negotiable first step.
Q3: What is the significance of the negative book value?
A3: A negative book value means the company’s total liabilities exceed its total assets. It indicates technical insolvency and is a major red flag. For the stock to have a sustainable future, this must be corrected over many years of profitability.
Q4: How to buy Kesar Enterprises shares?
A4: The stock is listed on the Bombay Stock Exchange (BSE) under the symbol 507180. It can be purchased through any stockbroking account. Given its micro-cap status and low liquidity, investors should use limit orders.
Final Strategic Outlook
Kesar Enterprises represents a binary investment case. The path to ₹60 by 2035 is a story of flawless execution, sector tailwinds, and financial rehabilitation. The path to zero is a story of continued losses and eventual failure.
For the Contrarian Investor: The high promoter holding and government ethanol policy provide a sliver of fundamental hope. Any investment should be tiny, portfolio-sized as speculative capital, and with a holding period of 5-10 years to see if the turnaround narrative unfolds.
For the Majority of Investors: This stock is best avoided. The severe fundamental weaknesses (negative ROE, negative book value) represent an unacceptable level of risk when compared to profitable, growing companies in the same sector.