Buy Balrampur Chini Mills, target price Rs 465: JM Financial

JM Financial has buy call on Balrampur Chini Mills with a target price of Rs 465. The current market price of Balrampur Chini Mills is Rs 393.95. Time period given by analyst is around a year when Balrampur Chini Mills price can reach defined target.

Balrampur Chini Mills, incorporated in the year 1975, is a Mid Cap company (having a market cap of Rs 7994.29 Crore) operating in Sugar sector.

Balrampur Chini Mills key Products/Revenue Segments include Sugar, Alcohol (Industrial), Power, Bagasse, Export Incentives, Others for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1124.83 Crore, up 2.76 % from last quarter Total Income of Rs 1094.59 Crore and down -7.67 % from last year same quarter Total Income of Rs 1218.23 Crore. Company has reported net profit after tax of Rs -31.99 Crore in latest quarter.

The company’s top management includes Mr.Vivek Saraogi, Mr.Naresh Dayal, Mr.D K Mittal, Mr.Krishnava Dutt, Ms.Veena Hingarh, Ms.Mamta Binani. Company has Lodha & Co. as its auditors. As on 30-09-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
The brokerage remains positive on the Indian Sugar sector given favourable regulation (intended towards the survival of the weakest mill), which augurs well for efficient companies like BRCM. Key risks, however is, lower-than-expected cane crushing volume and any unfavourable change in government regulations.

Promoter/FII Holdings
Promoters held 42.42 per cent stake in the company as of 30-Sep-2022, while FIIs owned 19.07 per cent, DIIs 18.2 per cent.