BALRAMCHIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | BALRAMCHIN | Market Cap | 9,811 Cr. | Current Price | 486 ₹ | High / Low | 628 ₹ |
| Stock P/E | 23.6 | Book Value | 183 ₹ | Dividend Yield | 0.72 % | ROCE | 9.84 % |
| ROE | 10.1 % | Face Value | 1.00 ₹ | DMA 50 | 465 ₹ | DMA 200 | 482 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | -0.09 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 46.0 Cr. |
| RSI | 54.6 | MACD | 8.36 | Volume | 11,77,316 | Avg Vol 1Wk | 8,77,038 |
| Low price | 393 ₹ | High price | 628 ₹ | PEG Ratio | -2.37 | Debt to equity | 0.21 |
| 52w Index | 39.5 % | Qtr Profit Var | 70.0 % | EPS | 20.6 ₹ | Industry PE | 11.9 |
📊 Financials: Balrampur Chini shows moderate fundamentals with ROCE at 9.84% and ROE at 10.1%, reflecting average capital efficiency. Debt-to-equity is low at 0.21, ensuring balance sheet stability. Quarterly PAT improved from 46 Cr. to 107 Cr. (+70%), showing earnings resilience. EPS stands at 20.6 ₹, supported by a book value of 183 ₹.
💹 Valuation: Current P/E of 23.6 is higher than the industry average of 11.9, suggesting overvaluation. P/B ratio is ~2.7x, moderately expensive relative to fundamentals. PEG ratio is negative (-2.37), indicating poor growth alignment. Intrinsic value appears closer to 440–460 ₹, slightly below current price.
🏢 Business Model & Advantage: Balrampur Chini operates in sugar and ethanol production, benefiting from government ethanol blending programs and cyclical demand in sugar. Its competitive advantage lies in scale, integrated operations, and diversification into ethanol. However, profitability remains cyclical and sensitive to commodity prices.
📈 Entry Zone: Current price is 486 ₹, near DMA 50 (465 ₹) and DMA 200 (482 ₹), showing consolidation. RSI at 54.6 indicates neutral momentum. A favorable entry zone would be 440–460 ₹. Long-term holding is advisable only if ethanol demand sustains and sugar cycle remains favorable.
Positive
- Debt-to-equity (0.21) remains low, ensuring financial stability.
- Quarterly PAT growth (+70%) shows earnings resilience.
- Integrated operations with ethanol diversification.
Limitation
- High P/E (23.6) compared to industry average (11.9).
- Negative PEG ratio (-2.37) suggests poor growth prospects.
- ROCE (9.84%) and ROE (10.1%) are modest.
Company Negative News
- FII holding reduced (-0.65%), showing weaker foreign confidence.
- DII holding reduced (-0.09%), reflecting weaker domestic support.
Company Positive News
- Quarterly PAT improved from 46 Cr. to 107 Cr.
- Strong ethanol integration supports long-term growth potential.
Industry
- Industry P/E at 11.9 highlights peers are valued more conservatively.
- Sugar and ethanol sector remains cyclical but supported by government blending programs.
Conclusion
⚖️ Balrampur Chini demonstrates moderate fundamentals with strong ethanol integration but stretched valuation and cyclical earnings. Entry is advisable near 440–460 ₹. Long-term holding is justified only if ethanol demand sustains and sugar cycle remains favorable.
Selva, BALRAMCHIN is a cyclical sugar & ethanol play with government policy support but valuation stretch. Would you like me to prepare a peer benchmarking overlay (ROE, ROCE, PEG, P/E filters) comparing it against other sugar/ethanol producers for sector rotation clarity?