BALRAMCHIN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a well-rounded review of Balrampur Chini Mills (BALRAMCHIN), one of India’s leading sugar producers and ethanol manufacturers

🍬 Core Financials & Profitability

EPS: ₹21.6 — modest earnings performance.

PAT Growth: ₹229 Cr (up 12.6%) — encouraging quarterly improvement.

ROE: 12.1% and ROCE: 11.1% — acceptable but not best-in-class, indicating moderate capital efficiency.

Debt-to-Equity: 0.69 — reasonably leveraged; manageable within industry norms.

Dividend Yield: 0.51% — small, reflects reinvestment focus.

💸 Valuation Metrics

P/E Ratio: 27.3 vs Industry PE: 18.3 — slightly overvalued unless earnings growth accelerates.

P/B Ratio: ~3.1 (₹590 ÷ ₹188) — fair for a manufacturing company with cyclical income.

PEG Ratio: –13.0 — negative due to anomalous growth data; signals unreliable valuation guidance.

Intrinsic Value: Likely below CMP due to valuation stretch and cyclical uncertainty.

🏭 Business Model & Competitive Edge

Segments: Sugar, ethanol, power cogeneration.

Strengths

Strong position in ethanol blending policy — future growth driver.

Efficient scale and integration across sugar value chain.

Risks

Highly cyclical revenues tied to monsoon and government policy.

Price control interventions and subsidy dependencies.

FII holding remains flat (–0.02%) indicating mild institutional interest.

📉 Technical & Sentiment Indicators

RSI: 42.8 — approaching oversold territory; watch for reversal cues.

MACD: –0.09 — weak negative crossover; uncertain short-term momentum.

Volume: Slightly below average — suggests indecision among market participants.

🎯 Suggested Entry Zone

₹540 – ₹575: Accumulation zone near DMA 200.

Wait for technical confirmation — MACD shift or RSI bounce — before initiating position.

🕰️ Long-Term Holding Outlook

Suitable for a 3–5 year horizon, especially with ethanol-focused capex playing out.

Works well in thematic portfolios aligned with government’s green fuel initiatives.

Investors should monitor commodity cycles, regulatory shifts, and margin stability closely.

Want to explore how this fits alongside Dwarikesh Sugar or Triveni Engineering? I can sketch out a sector-wide comparative insight for you.

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