Balrampur Chini Mills Ltd (BALRAMCHIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Triven.Engg.Ind.

Dalmia Bharat

Piccadily Agro

Avadh Sugar

Balrampur Chini

Dhampur Sugar

Uttam Sug.Mills

M.V.K. Agro

Bajaj Hindusthan

Bannari Amm.Sug.

Sh.Renuka Sugar

Why is Balrampur Chini Mills Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.28 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.28 times

Poor long term growth as Net Sales has grown by an annual rate of 7.08% and Operating profit at 0.99% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 8.72%
INTEREST(Q) At Rs 32.48 cr has Grown at 27.07%
OPERATING PROFIT TO INTEREST (Q) Lowest at 3.51 times

With ROCE of 7.7, it has a Expensive valuation with a 2.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.77%, its profits have fallen by -11.3%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Balrampur Chini for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Balrampur Chini

15.91%

0.46

34.59%

Sensex

-3.56%

-0.25

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.08%

EBIT Growth (5y)

0.99%

EBIT to Interest (avg)

8.54

Debt to EBITDA (avg)

2.01

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

1.19

Tax Ratio

32.00%

Dividend Payout Ratio

13.86%

Pledged Shares

Institutional Holding

38.42%

ROCE (avg)

12.51%

ROE (avg)

12.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.17

EV to EBIT

30.01

EV to EBITDA

22.61

EV to Capital Employed

2.23

EV to Sales

2.56

PEG Ratio

Dividend Yield

0.54%

ROCE (Latest)

7.72%

ROE (Latest)

9.15%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

ROCE(HY)

Lowest at 8.72%

INTEREST(Q)

At Rs 32.48 cr has Grown at 27.07%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.51 times

PAT(Q)

At Rs 44.15 cr has Fallen at -14.4%

DEBT-EQUITY RATIO(HY)

Highest at 0.77 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 34.99 times

PBDIT(Q)

Lowest at Rs 113.92 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.96%

PBT LESS OI(Q)

Lowest at Rs 43.62 cr.

EPS(Q)

Lowest at Rs 2.09

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Here's what is not working for Balrampur Chini

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 43.62 cr has Fallen at -34.68%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Quarterly

At Rs 32.48 cr has Grown at 27.07%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 3.51 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 44.15 cr has Fallen at -14.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 113.92 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.96%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 43.62 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.09

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.77 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 34.99 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 14.91 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income