JM Financial retains Buy on Balrampur Chini Mills, raises target price to Rs 700

JM Financial maintains a Buy call on Balrampur Chini Mills with a revised target price of Rs 700 (earlier Rs 635). The current market price of Balrampur Chini Mills Ltd. is Rs 600.0 Time period given by analyst is year when Balrampur Chini price can reach the defined target. Balrampur Chini Mills, incorporated in 1975, is a Mid Cap company with a market cap of Rs 12323.11 crore, operating in Sugar sector.

Balrampur Chini Mills’ key products/revenue segments include Sugar, Alcohol (Industrial), Power, Bagasse, Others, By Products for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1513.16 crore, up 26.21 % from last quarter Total Income of Rs 1198.92 Crore and up 5.19 % from last year same quarter Total Income of Rs 1438.56 crore. Company has reported net profit after tax of Rs 218.56 crore in latest quarter.

The company’s top management includes Mr.Vivek Saraogi, Mr.Praveen Gupta, Ms.Avantika Saraogi, Dr.Indu Bhushan, Mr.Chandra Kishore Mishra, Mr.Veena Hingarh, Ms.Mamta Binani. Company has Lodha & Co. as its auditors. As on 31-03-2025, the company has a total of 20 crore shares outstanding.

Investment Rationale
Balrampur?s upcoming PLA plant has strong offtake visibility on account of i) no equipment cost for switching to PLA from existing polymers, ii) incremental favourable government measures, iii) marginal cost differential between PET and PLA, and iv) large opportunity arising from non-recyclable PET. In JM Financial’s view, the company could look to build on this and even consider phase II after a PLA ecosystem is established. The brokerage remains constructive on the name as they see a clear long run shift from sugar/ethanol to a specialised bio plastics manufacturer. JM Financial keeps its estimates unchanged and reiterates a BUY with a revised SoTP based Sep’26 target price of Rs 700 (from Mar’26 target price of Rs 635 earlier).
Promoter/FII Holdings
Promoters held 42.87 per cent stake in the company as of 31-Mar-2025, while FIIs owned 12.01 per cent, DIIs 27.13 per cent.