pantheonuk
  • Home
  • Business
  • Education
  • Fashion
  • Health
  • Lifestyle
  • News
  • Tech
  • Travel
No Result
View All Result
Pantheonuk.org
  • Home
  • Business
  • Education
  • Fashion
  • Health
  • Lifestyle
  • News
  • Tech
  • Travel
No Result
View All Result
Pantheonuk.org
No Result
View All Result

How is the Balrampur Chini share up when the market is down?

Joe Calvin by Joe Calvin
January 6, 2023
in Business
0
sugar manufacturing company
Share on FacebookShare on Twitter

Balrampur Chini Mills Ltd is a sugar manufacturing company and a second largest sugar company with a crushing sugar capacity of 77500 TCD, a distillery capacity of 560 KLD and a co-generation capacity of 175.7 MW. Balrampur Chini Mills Ltd is India’s largest and most efficient integrated sugar manufacturing firm. The company reported that as of December 31, 2020, its long-term debt-to-equity ratio was 0.17.

Sugar, Industrial Alcohol, Molasses, Ethanol, Power, and Bagasse are some of the company’s primary product/revenue segments. The company built a new distillery unit in 2020 to add 320 KLPD to the capacity of its existing distilleries, bringing the total capacity to 840 KLPD.The Balrampur Chini share price at the time of writing is Rs.349.50, and its market capitalization stands at Rs. 7131.20 crore.  

Although the market has shown a downward trend, however, Balrampur Chini has shown positive results:

  1. To increase sugarcane yields and recovery, the corporation aims to replace the Co-0238 sugarcane variety in its catchment region with newer types.
  2. Balrampur Chini could increase its ethanol capacity 2x to Rs. 35 crore liters with distillery Capex. Distillery sales are expected to witness 47.1% CAGR to Rs. 2109.5 crores in FY22-24E, which would be 35% of total revenues.
  3. At some plants, it is undergoing modernization and de-bottlenecking. By FY24, this would result in increased sugarcane crushing and improved recoveries. In FY22-24E, we anticipate an 11.9% CAGR in sales.
  4. The company has a lower debt.
  5. Book value per share has increased in the last two years.
  6. Also, the company has zero promoter pledges.

The industry stands out in the sector with the rise of ethanol production, which promises a robust increase in revenue & unwavering profitability, which would entail a higher payment return. According to the corporation, the long-term debt-to-equity ratio was 0.17 as of December 31, 2020. 

See also  FARMERS AND BUSINESSES OF KRATOM AND ITS LEGALITY

The company has received an A1 rating for its Rs. 685 million non-fund-based limits and a high credit quality LA rating from the rating agency ICRA for its Rs. 8.41 billion long-term debt program and Rs. 6.2 billion fund-based bank limits. Sugar stocks have surged as the price of ethanol used for blending purposes may rise. This will also show on the Balrampur Chini share price and may lead to a price rise. 

The investor can consider buying the share as it is expected to increase a 40.1% CAGR in distillery volume, which would grow the company’s earnings by 28% CAGR during FY22-24.

Conclusion

For an investor, it is essential to focus on all the scenarios before investing in a stock. Balrampur Chini can be considered a buying option after contemplating all the factors.

Tags: Balrampur Chinisugar manufacturing company

Related Posts

business-partnership
Business

5 Ways to Curb Your Spending and Save Up Money

When you find yourself struggling to balance the amount of money you spend with the amount you make, you...

by cicerone
February 6, 2023
College Students
Business

8 Tips for Handling Student Loans

If you are a college student or recent graduate who is either drowning in loan debt now or will...

by cicerone
February 6, 2023
Is Individual Health Insurance Right For You?
Business

4 Things to Consider When Choosing a Cash-Value Life Insurance Policy

Life insurance policies are an important aspect of financial planning, providing a safety net for loved ones in the...

by cicerone
February 6, 2023
The Politics of Precious Metals – Is Investing Right for You?
Business

The Politics of Precious Metals – Is Investing Right for You?

If you are looking to invest in precious metals, you've come to the right place. We'll talk about exchange...

by cicerone
February 6, 2023
Next Post
energy storage

Home energy storage products: from the all-in-one machine to the high-pressure trend

Pantheonuk.org

Pantheonuk.org provides a informative articles about the topics of Business, Tech, Lifestyle, Health, Education, News and Travel. It's UK based blogging sites which covers various topics too.

  • Home
  • About
  • Contact

© 2022 pantheonuk.org

No Result
View All Result
  • Home
  • Business
  • Education
  • Fashion
  • Health
  • Lifestyle
  • News
  • Tech
  • Travel

© 2022 pantheonuk