Buy Mid Cap Sugar Stock As Growth Prospects Intact Amid Soaring Sugar Prices: Sharekhan

Sharekhan has picked mid cap sugar stock, Balrampur Chini Mills Ltd with target price of Rs 495 per share. Current market price of Balrampur Chini Mills share is Rs 442.75 per share with intraday fall of 0.54%. Balrampur Chini Mills stock offered 194% return in last 3-years and soared 24% in last 6-months. Check details below:

Balrampur Chini Mills Stock Outlook & Return: Current market price of Balrampur Chini share is Rs 442.80 per share with intraday fall of 0.53%. Its 52-week high price is Rs 461.95 per share and 52-week low price is Rs 306.80 per share, respectively. It has a market cap of Rs 9034.89 crore. Balrampur Chini stock offered shareholders return of 14% in last 1-month, gained 16% in last 3-months, jumped 29% in last 1-year, and offered return of 194% in last 3-years. In last 5-years, Balrampur Chini shares gained 526%. In last 10-years, Balrampur Chini stock rallied 948%.

Balrampur Chini Mills Valuation: According to Sharekhan, "We like the company's focus on improving growth prospects by playing on its strategy of maximising value accruals from each tonne of cane crushed. Further, strong growth in the distillery business will help BCML to consistently improve its profitability in the coming years. With an expected improvement in cash flows, the company is focusing on significantly reducing debt in the coming years. Management has maintained its stance of improving shareholders' value by generating higher cash flows in the coming years. The stock trades at decent valuations of 17x/14x its FY2024E/FY2025E earnings. We maintain our Buy recommendation on the stock with a revised price target (PT) of Rs. 495."

Balrampur Chini Mills Financials: The company announced its result in earlier this year in August where it announced a jump of 493% in its profit to scale to 73.5 crore for the quarter ended June 2023. It declared its consolidated net profit at Rs 12.38 crore in the corresponding quarter of last fiscal, according to its BSE filing. Meanwhile, revenue soared 28% from Rs 1094.59 crore during Q1 FY2023 to Rs 1401.81 crore for the quarter ended June 2023.

Balrampur Chini Mills About: Balrampur Chini Mills Limited founded in 1975, is one of the largest sugar manufacturing company in India. It is one of the first sugar companies in the country to diversify its business from sugar to distillery and cogeneration, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.