Balrampur Chini Mills Ltd (500038) closes at ₹266.55 with
a Fall of -0.50% on
23-April-2021 with formation of a Small Red Candle on Daily Price
Chart.
About the Company : BCML is one
of the largest sugar producers in India. The operations of the company are
forward integrated, manufacturing ethanol, using molasses' a by-product of
sugar, and power, using cogeneration from bagasse, generated out of sugar manufacturing. Its facilities consist of ten sugar
mills in Uttar Pradesh with a combined capacity of 76,500 tonnes per day (TPD)
of sugarcane, 520 kilo litres per day (KLPD) of distillery and 165.2 megawatt
[MW] of saleable cogeneration capacity. The Saraogi family, the promoters, held
41.21% of the company's equity capital as on December 31, 2020.
Sector Update : Positive
Strength : 1. Established market position
and diversified revenue profile 2. Superior and improving operating
efficiencies 3. Comfortable financial risk profile
Weaknesses : 1. Susceptibility of business
performance to downturn in the sugar business 2. Exposure to regulatory
changes in the sugar industry
Financials : Balrampur
Chini Mills Ltd has posted Net Sales /
Revenue of ₹4741.30 Cr &
Net Profit of ₹509.30 Cr in FY2020
and expected to post Net Sales / Revenue of ₹4995.00 Cr &
Net Profit of ₹486.90 Cr in
FY2021 and Net Sales / Revenue of ₹5104.20 Cr &
Net Profit of ₹610.50 Cr in
FY2022 and Net Sales / Revenue of ₹5450.10 Cr &
Net Profit of ₹712.70 Cr in
FY2023.
Valuations : The Company is now
Trading at X 0.70 of its valuations (
last 4Quaters earnings considered here) with ~30% Discount and at X0.69 of its FY 2021, which is now almost ~31% Discount to its value and X 0.55
of its FY 2022 earning with a Discount of ~45% and X0.47 of its FY2023
earning with ~53 % Discount to its valuations.
Margin of Safety (1Yr Bond Yield: Value>1
) is now 2.1 which makes is attractive as
available at almost ~50% Deep Discount. The Equity Value Per Share ( Enterprise Value Method ) is ₹265.80
Whats
best in It : Balrampur
Chini Mills Ltd is now available at EPS of 14.60(FY2020), which will
improve to 35.50 in FY2023, Free
Cash Flow will rise to ₹675.50 Cr in from ₹595.20Cr during the same period.Book Value per Share will be ₹166 in FY2023, which is ₹108 in FY2020.
If We factor its earnings/valuations, its Price arrives
at ₹562 with
consideration FY2023 earnings.
Disclaimer : We are / may going to take exposure shortly.
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Data
Source | NSE Website | Screener.In | Capital
Line | Money
Control |
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avenues of return based on Fundamental Valuations of Stocks, a follower of EPV
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