Sweet as Sugar! Balrampur Chini delivers over 25% returns in last 6-months

Sugar companies’ stocks thrived after the government announced various initiatives to ensure a healthy financial position of the sector.

Balrampur Chini Mills’ counter has rewarded investors with over 270% in the last 2-years, and about 25% returns in the last 6-months. The company’s latest 52-week high was on April 8, 2022, at Rs525.90. Its 52-week low is at Rs297.60 on NSE.

The company has a market capitalization of Rs8,200 crore, the shares are trading above the short-term moving averages of 10, 20, and 200 DMA. But, below 50,100-DMA levels.

Long-term investors hit a jackpot with their investment in this stock as it has surged over 700% in the last 10-years.

Balrampur Chini Mills (BRCM) is seeking expansion in distillery capacity from the existing 560 KPD to 1050 KPD in 2HFY23.

As per CareEdge’s Research, Ethanol Blended Petrol (EBP) is an important factor for the sugar industry in India, which strives to reduce the sugar situation in India. The government has taken several measures to support the EBP program.

The EBP program aims at diverting sugarcane and surplus sugar toward the manufacturing of ethanol, which is one of the key focus points for the future of the sugar industry.

The demand for Ethanol blending is estimated to touch new heights over ESY21-26.

At around 3.07 PM, Balrampur Chini Mills was trading at Rs401 down by Rs3.3 or 0.82% from its previous closing of Rs404.30 on the BSE.