Mehabe score: 2 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery operations and cogeneration of power.
BCML is one of the most efficient integrated sugar producers in the country. The Company has grown its capacity by well-planned capacity expansion projects and the acquisition of existing companies over recent years.
Main Points
Manufacturing Capabilities
The company owns and operates 10 manufacturing plants in Eastern & Central Uttar Pradesh. It has an installed crushing capacity of 76500 tonnes of cane per day(CPD). Its 4 distillery units operate at a capacity of 520 KLPD. Its 8 co-gen power units possess a total power output of ~170 MW.
The company has approved capex of ~320 crores for setting up its 5th distillery of 320 KLPD capacity at Maizapur unit.Site:BALRAMCHINMain Symbol:BALRAMCHIN
Stock trades at 356.0, above its 50dma 337.67. It also trades above its 200dma 257.63. The stock remains bullish on techicals
The 52 week high is at 387.10 and the 52week low is at 130.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 36.46% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 11.78% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 13.6x. Bannari Amm.Sug. trades at the industry’s max P/E of 27.83x. BALRAMCHIN trades at a P/E of 15.8x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. BALRAMCHIN has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is -4.9%. The max 1- month return was given by Bannari Amm.Sug.: a return of 11.51 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1140.0 cr compared to Rs 1430.0 cr for period ended Jun 2020, a fall of 20.3%
Operating Profits reported at Rs 134.0 cr for period ended Jun 2021 vis-vis 217.0 for period ended Jun 2020 .
Operating Margins contracted -342.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.66 compared to Rs 11.21 for previous quarter ended Mar 2021 and Rs 6.32 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4522.0 cr for period ended TTM vis-vis sales of Rs 4812.0 cr for the period ended Mar 2021, a fall of 6.4%. The 3 year sales cagr stood at 1.8%.
Operating margins shrank to 14.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 418.0 cr for period ended TTM vis-vis sales of Rs 480.0 cr for the period ended Mar 2021, falling 14.8%.
Company reported a poor Net Profit CAGR of -10.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 23.0% over the last 3 Years. – The stock has given a return of 173% on a 1 Year basis vis-vis a return of 70% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 20.79% vis-vis 21.57% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 21.76% vis-vis 22.16% for Mar 2021
Conclusion
– has delivered good profit growth of 36.46% CAGR over last 5 years – The company has delivered a poor sales growth of 11.78% over past five years.
– might be capitalizing the interest cost
