Thursday, December 4, 2008

Buy Balrampur Chini, target of Rs 55: Karvy

(My Original Blog Post: -*
Karvy Stock Broking has recommended a buy rating on Balrampur Chini Mills with a target of Rs 55 in its December 4, 2008 research report. "Balrampur Chin Mill (BCML) reported revenue increase of 40.8% YoY (QoQ increase of 30.2%) to Rs 4.11 billion mainly on account of higher sugar and distillery revenue in the Q4FY08. The company reported profit of Rs 145 million translating into EPS of Rs 0.57 for the quarter."

"The company is expected to report loss of Rs 240 million in FY09 and profit of Rs 1.26 billion in FY10. We have assumed cane cost of Rs 140 per quintal in FY09 and Rs 148 per quintal in FY10. Considering lower profitability in sugar and uncertainty on cane cost, we continue our valuation based on replacement cost method. We are revising our valuation of EV/ Ton from Rs 0.35 million to Rs 0.3 million with target price of Rs 55 (Previous Rs 68), Buy," says Karvy Stock Broking's research report.

Source : MoneyControl


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