Buy or Sell: Balrampur Chini Share Price Target 2024, 2025, 2030, 2035 Long-Term Prediction
Today, we are going to estimate the Balrampur Chini Share Price Target 2024 to 2050 Long Term Prediction. Balrampur Chini is listed on the NSE under the symbol “BALRAMCHIN” and on the BSE with the code “500038“. let’s analyze the future of Balrampur Chini Share Price Target as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis Balrampur Chini Share Price Target Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation Key Buy or Sell at the end of the article.
Profile of Balrampur Chini
| Name | Balrampur Chini Mills Ltd. |
| Industry | Sugar |
| Founded | 1975 |
| Services | Production of Sugar Bio-Ethanol Renewable Energy Alcohol Production Power Generation Agricultural Chemical Manufacturin |
| Country | India |
| Website | chini.com |
| Profile | Balrampur Chini |
Keep an eye on Balrampur Chini’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Balrampur Chini’s stock price.
About Balrampur Chini Company
Balrampur Chini Mills Limited, often known as BCML, is a shining star in the Indian sugar industry. Established in 1975, this company has grown to become one of the largest sugar and ethanol producers in the country.
The company operates 10 sugar plants in the Eastern and Central parts of Uttar Pradesh, with an impressive crushing capacity of 77,500 tonnes of cane per day. But sugar is just one part of the story. BCML is also a major player in the ethanol market, producing this green fuel using Zero Liquid Discharge technology.
BCML is also a pioneer in green power. By using bagasse – the fibrous residue from sugarcane after juice extraction – as a biofuel, the company produces eco-friendly energy.
Now, let’s talk about the future. BCML announced a significant expansion in its ethanol production capacity, from 840 KLPD to 1050 KLPD, in response to the robust policies of the Government of India on ethanol blending.
Financial of Balrampur Chini
Conduct a SWOT analysis of Balrampur Chini Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.
Strengths–
Consistent Sales Growth: The company has demonstrated a stable growth in sales over the years. For instance, sales increased from Rs. 1,290 crores in Sep 2020 to Rs. 1,539 crores in Sep 2023.
Robust Operating Profit Margin (OPM): The OPM has remained positive, indicating efficient operational management. For example, the OPM in March 2023 was 11%, signifying good control over operating expenses.
Strong Net Profit Trends: Net profit has shown an overall increasing trend, with significant growth in recent quarters, like Rs. 166 crores in Sep 2023, indicating healthy profitability.
Weaknesses–
Fluctuations in Operating Profit: There have been fluctuations in operating profit, such as a drop to -16 crores in Sep 2022, suggesting occasional operational challenges.
Varying Interest and Depreciation Costs: The company has experienced varying levels of interest and depreciation expenses, impacting its bottom line. For instance, interest expenses increased to Rs. 34 crores in Mar 2023.
Inconsistent OPM: The OPM has shown variations (e.g., dropping to 3% in Dec 2020), which could indicate vulnerability to market and operational pressures.
Opportunities–
Market Expansion: With steady sales growth, the company can explore new markets and product segments.
Diversification: Opportunities to diversify into related sectors like ethanol, power generation using bagasse (sugarcane waste), which can provide additional revenue streams.
Efficiency Improvements: By improving operational efficiencies, the company can enhance its OPM and overall profitability.
Threats–
Market Volatility: Fluctuating sugar prices and government policies on sugar industry can impact profitability.
High Competition: Intense competition in the sugar industry can lead to price wars and margin compression.
Environmental and Regulatory Risks: Stricter environmental regulations and potential changes in government policies regarding the sugar industry could pose significant challenges.
Brokerage Firms
An effective method for evaluating the Balrampur Chini share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Balrampur Chini Share Price Target.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 27 SEP 2023 | Sharekhan | 495.00 | Buy |
| 13 MAY 2023 | ICICI Direct | 470.00 | Buy |
| 14 FEB 2023 | ICICI Direct | 435.00 | Buy |
The financial services firm Sharekhan published the latest research report on Balrampur Chini Share Price Target, assigning a ‘Buy’ rating with a share price target of Rs. 495 from its current market price of Rs. 445.
BCML’s stock, currently trading at a reasonable 17x/14x its FY2024E/FY2025E earnings, is seen as a solid investment owing to its promising earnings visibility. This is largely attributed to the rising sugar prices and an increasing mix of ethanol in its production portfolio. The near-term earnings visibility is bolstered by the surging sugar prices, which have seen a domestic increase of 8% year-on-year and 11% since April 2023. This uptick in prices is expected to enhance BCML’s revenue in the forthcoming quarters.
The company’s strategic focus on improving sugar recovery through the introduction of new sugar varieties and a higher mix of ethanol production is anticipated to lead to significant working capital savings. These changes are well-timed, considering the likely decline in India’s sugar production in the next season, coupled with a lower global output. Such market conditions have already resulted in a surge in sugar prices both domestically and internationally.
Balrampur Chini Mills is poised to benefit immensely from this scenario. With global sugar production expected to drop by 1.21% in the Sugar Season (SS) 2023-2024, and India’s production likely to be down by approximately 3%, the company’s strategy to focus more on ethanol production appears prudent. This shift is not just a response to the current market dynamics but a strategic move to enhance profitability and reduce dependency on sugar alone.
The increased emphasis on ethanol production is expected to lead to a production of 31-32 crore litres and sales of 28-29 crore litres for FY2024. This pivot towards ethanol is also a response to the environmental push for cleaner fuels. It’s a strategic alignment with the government’s vision, which further solidifies the company’s position in the market.
Moreover, the management’s confidence in achieving a reduction in working capital by Rs. 1,000-1,500 crore is a testament to the company’s operational efficiency and strategic foresight. This is expected to reduce the short-term debt in the coming years, enhancing the company’s financial health.
Long-Term Prediction
We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Balrampur Chini Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹420 | ₹480 |
| 2025 | ₹450 | ₹520 |
| 2026 | ₹480 | ₹560 |
| 2027 | ₹510 | ₹610 |
| 2028 | ₹540 | ₹660 |
| 2029 | ₹580 | ₹720 |
| 2030 | ₹620 | ₹780 |
| 2035 | ₹750 | ₹950 |
| 2040 | ₹900 | ₹1,150 |
| 2045 | ₹1,100 | ₹1,400 |
| 2050 | ₹1,300 | ₹1,700 |
Analyst Recommendations
Balrampur Chini Buy or Sell
Daily Low / High
Peer Comparison of Balrampur Chini
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| EID Parry | 10.29 | 10197.50 |
| Sh.Renuka Sugar | – | 10057.11 |
| Balrampur Chini | 15.06 | 8140.58 |
| Triven.Engg.Ind. | 17.19 | 7467.70 |
| Bajaj Hindusthan | – | 3646.86 |
| Dalmia Bharat | 10.75 | 3297.50 |
| Bannari Amm.Sug. | 20.66 | 3164.71 |
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– As of 7 January 2024, the current share price of Balrampur Chini is ₹402.90 Check out today’s current share price of Balrampur Chini at the top.
– According to Google historical data, the price of Balrampur Chini on 1 JAN 1999 was ₹10.86.
– The latest research report from “Sharekhan” sets a Balrampur Chini Share Price Target of Rs.495.
– Based on our analysis, the maximum Balrampur Chini Share Price Target in 2025 is projected to be ₹520.
– Based on our analysis, the maximum Balrampur Chini Share Price Target in 2027 is projected to be ₹610.
– Based on our analysis, the maximum Balrampur Chini Share Price Target in 2030 is projected to be ₹780.
– Based on our analysis, the maximum Balrampur Chini Share Price Target in 2035 is projected to be ₹950.
– Based on our analysis, the maximum Balrampur Chini Share Price Target for the Next 5 Years is projected to be ₹720.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict Balrampur Chini Share Price Target.
Disclaimer– These Share Price Targets for “Balrampur Chini Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Balrampur Chini stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
