BALRAMPUR CHINI
 
  

 
 

SHARETIPSINFO >>Research Reports >> BALRAMPUR CHINI MILLS LTD. (16-01-2009)

 

LISTING
CMP
Rs 54
52 WEEK HIGH/LOW
Rs 121/Rs29
FACE VALUE
Rs 1
Market Cap.
1226 CRORE
PE Ratio

14

P/BV
1.38

 

COMPANY OVERVIEW:
Balrampur Chini Mills Limited (“BCML”) was incorporated in 1975 under the Companies Act as a wholly-owned subsidiary company of Balrampur Sugar Company Limited (Name changed to Balrampur Commercial Enterprises Limited) (“ BCEL ”). By an indenture of conveyance dated 21ST February 1976, BCEL transferred to BCML the land, building and other assets and the entire staff of its Balrampur Sugar Factory with effect from 1 July 1975. BCML ceased to be a subsidiary of BCEL with effect from 25th June, 1979.
Balrampur Chini Mills Ltd is one of the largest integrated sugar manufacturing companies in India. Its allied business consists of manufacturing and marketing of ethyl alcohol and ethanol, generation and selling of power and manufacturing and marketing of organic manure.


FACTORIES LOCATION AND THEIR CAPACITIES:

 


Unit

Address

Plant

Capacity

Balrampur

Balrampur Chini Mills Ltd.
Unit : Balrampur
P.O. : Balrampur, Dist. : Balrampur, U.P
Pin : 271 201

Sugar
 Power
Distillery
Organic Manure

12000 TCD
24.55 MW
160 KLPD
30000 MT

Babhnan

Balrampur Chini Mills Ltd.
Unit : Babhnan
P.O. : Babhnan, Dist : Gonda, U.P
Pin : 271 313

Sugar
 Distillery
Organic Manure

10000 TCD
60 KLPD
18000 MT

Tulsipur

Tulsipur Sugar Co.
A Unit of Balrampur Chini Mills Ltd.
P.O. : Tulsipur, Dist. : Balrampur, U.P
Pin : 271 206

Sugar

7000 TCD

Haidergarh

 

Sugar
Power

5000 TCD
23.25 MW

Akbarpur

Akbarpur Chini Mills
A Unit of Balrampur Chini Mills Ltd.
P.O. : Mijhaura, Tehsil : Akbarpur
Dist. : Ambedkarnagar, U.P Pin : 224 152

Sugar
Power

7500 TCD
18.00 MW

Rauzagaon

Rauzagaon Chini Mills.
A Unit of Balrampur Chini Mills Ltd.
P.O. : Rauzagaon, Dist. Barabanki, U.P
Pin : 225 402

Sugar
Power

8000 TCD
25.75 MW

Mankapur

Mankapur Chini Mills
A Unit of Balrampur Chini Mills Ltd.
P.O. : Datauli, Tehsil : Mankapur,
Dist. : Gonda, U.P
Pin : 271 306

Sugar
Power
Distillery
Organic Manure

8000 TCD
34.00 MW
100 KLPD
10000 MT

Kumbhi

Kumbhi Chini Mills.
A Unit of Balrampur Chini Mills Ltd.
Vill: Kumbhi, Tehsil: Golagokarannath.
Dist. : Lakhimpur Kheri, U.P.

Sugar
Power

8000 TCD
20.00 MW

Gularia

Gularia Chini Mills
A Unit of Balrampur Chini Mills Ltd.
Vill : Gularia, Tehsil : Golagokarannath
Dist. : Lakhimpur Kheri, U.P

Sugar
Power
Distillery

8000 TCD
31.3 MW
100 KLPD

Maizapur

Indogulf Industries Ltd. Unit - Maizapur Sugar Vill - Maizapur
P.O - Haldharman
Tehsil - Colonelgunj
Dist - Gonda, U.P
Pin - 271 126

Sugar

3000 TCD

 
PRODUCT:
Sugar
Molasses –It is the feedstock for the manufacturing of alcohol and host of downstream chemical.
Alcohol-Molasses are treated to manufacture alcohol.
Ethanol.
Bagasse.
Power.
Organic manure.


SECTORAL OUTLOOK:
The prices of sugar have risen 5%, 8%and 7% in Kolkata, Mumbai and Delhi, respectively since the beginning of January this year. The prices of sugar in fact, been registering big jumps both for the wholesale and the retail consumer countrywide since January last year. The rise in wholesale price was as high as 50% in some parts of the country since January 2008.
The jump in wholesale sugar price in run-up period to January 1, 2009, and since then up to January 9, 2009, in Kolkata was about 120 per quintal. In Mumbai the hike is Rs156 per quintal. In Delhi, the hike is Rs40 per quintal.
Much of the price hike towards 2008-end and early-2009 was driven by lower output estimates-only 180 lakh tones in the 2008-09 sugar year-compared to earlier estimates of 220 lakh tones.


SHAREHOLDING PATTERN:

 

 

NO. OF SHARES

% OF TOTAL

PROMOTER

94150890

 

36.84%

 

INSTITUTION

101408139

 

39.68%

 

GENERAL PUBLIC

59977281

 

23.48%

 

GRAND TOTAL

255536310

 

100.00%

 

FINANCIAL:

 

 

31/03/05

31/03/06

31/03/07

31/03/08

TOTAL INCOME

816.27

1905.24

1401.93

1477.67

EXPENDITURE

-573.89

-1438.75

-1302.65

-1148.17

OPERATING INCOME

242.38

466.49

99.28

329.5

DEPRECIATION

-37.27

-67.09

-80.22

-117.21

PBIT

 

205.11

399.4

19.06

212.29

INTEREST

 

-18.93

-34.51

-54.42

-89.65

PBT

 

186.18

364.89

-35.36

122.64

TAX

 

-38.85

-73.3

-6.48

-25.61

PAT

 

147.33

291.59

-41.84

97.03

CHANGE IN THE TOTAL INCOME:

CHANGE IN THE OPERATING INCOME:


CHANGE IN THE NET PROFIT:


The financial is looking better now on account of higher price of the sugar. The sugar stock is cyclical stock and sugar cycle is on upside.


RATIO:

 

 

31/03/05

31/03/06

31/03/07

31/03/08

 

EPS

5.768598

11.41252

-1.63757

3.797652

 

OPM

29.69361

24.48458

7.081666

22.29862

 

NPM

18.04917

15.30463

-2.98446

6.566419

INTEREST COVERAGE

10.82946

11.57346

0.350239

2.367987

The Interest coverage ,EPS,NPM,OPM and started improving in last year.


COMPARISON OF FYQ2 2009 WITH FYQ2 2008:

 

 

30/09/07

 

30/09/08

TOTAL INCOME

296.16

 

417.06

EXPENDITURE

-293.96

 

-344.47

OPERATING INCOME

2.2

 

72.59

DEPRECIATION

-23.21

 

-28.83

PBIT

 

-21.01

 

43.76

INTEREST

 

-13.16

 

-28.33

PBT

 

-34.17

 

15.43

TAX

 

0.07

 

-0.85

PAT

 

-34.1

 

14.58

In this FYQ2 2009 company has earned Rs14.58 crore as compared to losses of Rs-34.1 crore in FYQ2 2008.


VALUATION AND OUTLOOK:
At Cmp Rs55 stock is trading at 14.4 x, we expect the EPS to increase to Rs 6 in the next financial year. At cmp it is trading at 10 x to FY2010 earning. We expect the price to be around Rs90. The company seems to be undervalued at this rate.

CONCLUSION:
In 2009 and 2010 we expect the counter to do better. Stock can be accumulated on every dip. Medium term and long term investor should take exposure on this counter on every dip before speculative activity starts deriving the counter.

 

 

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