Buy Balrampur Chini Mills, target price Rs 480: JM Financial

JM Financial has buy call on Balrampur Chini Mills with a target price of Rs 480. The current market price of Balrampur Chini Mills is Rs 415.9.

Balrampur Chini Mills, incorporated in the year 1975, is a Mid Cap company (having a market cap of Rs 8529.23 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 1001.40 Crore, down -10.97 % from last quarter Total Income of Rs 1124.83 Crore and down -18.17 % from last year same quarter Total Income of Rs 1223.77 Crore. Company has reported net profit after tax of Rs 44.01 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 31-12-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
The brokerage believes the most efficient mills like Balrampur Chini will reap tremendous profits through integrated operations in the medium term.

Promoter/FII Holdings
Promoters held 42.43 per cent stake in the company as of 31-Dec-2022, while FIIs owned 13.86 per cent, DIIs 19.76 per cent.