BALRAMCHIN - Investment Analysis

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

Investment Rating: 3.4

Let’s evaluate Balrampur Chini Mills Ltd (BALRAMCHIN) as a long-term investment candidate

📊 Fundamental Analysis

Profitability

ROE: 12.1% and ROCE: 11.1% — moderate, not standout for long-term compounding.

EPS: ₹21.6 — decent, but not high-growth territory.

Valuation

P/E: 27.3 vs Industry P/E: 18.3 — trading at a premium.

PEG Ratio: -13.0 — negative PEG suggests earnings contraction or unreliable growth estimates.

Balance Sheet

Debt-to-equity: 0.69 — manageable, but higher than ideal for cyclical sectors like sugar.

Dividend Yield: 0.51%

Low, not compelling for income investors.

Quarterly Performance

PAT up 12.6% QoQ — positive momentum.

FII holding slightly down (-0.02%), while DII increased (+0.89%) — mild institutional support.

📈 Technical Indicators & Entry Zone

Current Price: ₹590

Hovering near DMA-50 (₹592) and above DMA-200 (₹549) — neutral to mildly bullish.

RSI: 42.8 — approaching oversold zone.

MACD: -0.09 — flat, no strong momentum.

🟢 Ideal Entry Zone: ₹540–₹565 This range offers a better valuation buffer and aligns with technical support levels.

🧭 Exit Strategy / Holding Period

If you already hold the stock

📌 Consider a 2–4 year horizon, especially if you're betting on ethanol and bioplastics expansion.

Monitor quarterly earnings and PEG ratio. If PEG remains negative and ROE stagnates, reassess.

Exit Signals

Sustained drop below ₹520 with weak earnings.

PEG ratio remains negative or worsens.

Institutional selling accelerates or sugar sector faces regulatory headwinds.

🧾 Summary

Balrampur Chini is a stable but not high-growth play in the sugar and ethanol space. While it has decent fundamentals and a clean balance sheet, the valuation looks stretched and growth metrics are uninspiring. It’s best suited for moderate-risk investors looking for sectoral exposure rather than aggressive returns.

Want to compare this with Dhampur Sugar or Renuka Sugars for a broader sugar-sector view? I can help you build a thematic mini-portfolio.

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