back to top
Saturday, May 25, 2024
34 C
Lucknow

Balrampur Chini gains 4%; hits record high on strong business outlook

Date:

Share:

Shares of Balrampur Chini Mills (BCML) hit a record high of Rs 462, as they rallied 4 per cent on the BSE in Thursday’s intra-day trade on strong business outlook. With a favourable mix of ethanol towards B-heavy/juice (feedstock) coupled with higher sugar realisations; operating margins of sugar companies are expected to improve.

The stock of sweetener surpassed its previous high of Rs 459.25 on January 20, 2022. In the past two weeks, the stock has surged 23 per cent, as against a 3.3 per cent rise on the S&P BSE Sensex. In the last three months, the stock has outperformed the market by surging 37 per cent, as compared to 4.6 per cent decline on the benchmark index.

The sugar industry is on the cusp of a mega transformation and has emerged as a potent driver of clean energy, driving India’s shift to renewable energy faster than ever. Ethanol demand should grow at a 15 per cent CAGR over FY22-30E driven by the government’s mandate of 20 per cent ethanol-blending in petrol.

Meanwhile, for October-December quarter (Q3FY22), BCML reported healthy set of numbers with 13 per cent year-on-year (YoY) sales growth at Rs 1,212 crore, aided by sugar & ethanol realisations inspite of lower sugar volumes. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 174 per cent YoY at Rs 99.8 crore, with margins at 8.2 per cent. Profit after tax (PAT) more-than-doubled or up 138 per cent YoY at Rs 64.1 crore.

The company believes it would be able to reach higher crushing levels of sugar season 2019-20 in next crushing season, which would help the company to divert additional sugarcane for the production of ethanol through sugarcane juice route in Maizapur & Balrampur distillery.

Though BCML has been facing an issue of sugarcane availability in the last two years, analyst at ICICI Securities believe the company has been able to source additional sugarcane from surrounding sugar mills. The company would be commissioning its 320 KLD Maizapur distillery & expanding Balrampur distillery capacity by 170 KLP by November 2022, which would take its distillery capacity to 35 crore litre from current 19 crore litre.

“We continue to maintain that BCML is the most efficient sugar company with strong track record for shareholder’s payout. We maintain our positive stance on the company,” the brokerage firm said with maintain BUY recommendation on the stock and target price of Rs 600 per share.

The above news was originally posted on www.business-standard.com

Aabkari Times Editorial Teamhttps://aabkaritimes.com
Aabkari Times is a monthly news magazine on Liquor, Excise and Alcohol allied industry; being published since 2009 by the expertise of retired excise dept. associates and alco-bev industry professionals as our editorial team. Our magazine contains different new alco-bev strategic and new brand launch articles as well as news on recent govt. policies, trends on alcohol industry and other important data relevant to the distilleries and industry at the mass.

Subscribe to our magazine

━ more like this

Oil Marketing Companies Seek Bids for Ethanol Supply in ESY 2023-24

In ESY 2023-24, Oil Marketing Companies (OMCs) are seeking bids for the supply of approximately 66 crore litres of Denatured Anhydrous Ethanol. Bidders are...

Haryana’s New Excise Policy to Raise Liquor Prices, Introduce Tracking System

The Haryana government has given the green light to a comprehensive excise policy for the fiscal year 2024-25, slated to take effect from June...

Radico Khaitan Unveils Last Three Bottles of Rampur Signature Reserve at Hyderabad Airport Duty-Free

Radico Khaitan proudly marks its entry into Hyderabad Airport Duty-Free, unveiling the last three bottles of the globally acclaimed Rampur Signature Reserve Indian Single...

Karnataka Government Elevates Liquor Retail with Premium Boutique in Bengaluru

The Karnataka government has inaugurated a high-end liquor boutique in Bengaluru, located at Basaveshwara Nagar, marking a significant step in enhancing the state's retail...

New Year Cheers : A State-by-State Look at India’s New Year Liquor Surge

As the revelry of New Year's Eve subsides, India witnesses a notable surge in liquor sales, indicating a vibrant start to the year. Here's...
spot_img