HomeNewsBusinessStocksBuy Balrampur Chini Mills; target of Rs 520 Sharekhan

Buy Balrampur Chini Mills; target of Rs 520 Sharekhan

Sharekhan is bullish on Balrampur Chini Mills has recommended buy rating on the stock with a target price of Rs 520 in its research report dated November 08, 2023.

November 13, 2023 / 11:58 IST
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Buy
Buy

Sharekhan's research report on Balrampur Chini Mills

Balrampur Chini Mills (BCML) registered good performance in a seasonally weak quarter with a 38% y-o-y growth in revenues and EBIDTA margins standing high at 10.7%. Management expects a further 10% increase in crushing in SS 2023-24 (over ~16% increase achieved in SS 2022-23). Company targets 31-32 crore litre ethanol production and 28-29 crore litre ethanol sales for FY2024. Ethanol production will be done from sugar juice and broken rice.

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Outlook

Stock trades at 17x/14x/13x its FY024E/FY2025E/FY2026E earnings. We maintain Buy with a revised PT of Rs. 520.