As of April 16, 2021, Balrampur Chini Mills Ltd., a sugar manufacturer, held market capitalisation of Rs. 5,389.65 crore. The business established in 1975. End of March 2020, the firm reported consolidated quarterly revenue of Rs. 47412.94 crore. The company is listed on the National Stock Exchange under the symbol BALRAMCHIN and on the Bombay Stock Exchange under the code 500038. The business asserts that it is India’s second-largest integrated sugar manufacturer.
The company said that as of December 31, 2020, its long-term debt-to-equity ratio was 0.17. Sugar, Alcohol, Molasses, Ethanol, Power, and Bagasse are the company’s primary product segments. Balrampur Chini Mills released Q1FY23 Results.
- The distillery segment is anticipated to provide roughly 35% of total revenues in the future. In FY22, revenue from the segment contributed about 19% of overall revenues, up from 11% in FY19.
- The distillery segment’s contribution to PBIT increased to 56% in FY22 from 49% in FY19 as the company focused on growing sales and profit from the distillery.
- Rs. 10.81 cr. Percentage of total comprehensive income (Rs. 72.70 crore. in the corresponding quarter, Q1FY 22)
- About Rs. 44.42 crore andthe EBITDA (Rs. 134.03 crore in the corresponding quarter, Q1FY 22)
- Earnings per share of Rs. 0.57 (Rs. 3.48 in the corresponding quarter, Q1FY 22)
The Balrampur Chini share price has received an A1 rating for its Rs 685 million non-fund-based limits and a high credit quality LA rating from agencies like ICRA for its Rs. 8.41 billion long-term debt program and around Rs. 6.2 billion fund-based bank limits. It is also important to remember that on April 10, 2021, the Credit Rating Agency, ICRA Limited, confirmed that the long-term and short-term Credit Ratings had been reaffirmed. However, the outlook for the long-term rating has changed from stable to positive.
Strengths
- Low debt levels.
- The company’s book value per share improved over the past two years.
- Zero Promoter Pledge Company.
Weakness
- Last quarter, MFs reduced their holdings.
- RoCE has decreased over the past two years due to inefficient capital utilisation to produce profits.
- Ineffective use of shareholder money: ROE has diminished over the past two years.
Beginning in April 2022, the Balrampur Chini share price sharply declined from Rs. 526 to Rs. 331 before stabilising near its historical support of Rs. 335. Throughout August, the counter displayed a pair of Doji candles, followed by a couple of Inverted Bullish Hammer candles, and the volume gradually increased, signifying an uptrend. From the perspective of an indicator, the daily relative strength index has brilliantly built an impulsive structure around the oversold zone, which promotes the climb in the counter.
Currently, one can buy a minimal quantity, and another can be had for roughly Rs. 340. Set your upside target at Rs. 420 and your stop loss at Rs. 320.
