Balrampur Chini - Recommend Hold - Aditya Birla MOney

Balrampur Chini posted healthy set of numbers led by carryover low cost sugar inventory - Recommend to continue to hold the stock;

Net sales increased by 43.5% YoY to Rs 9499.3 mn, mainly led by 50.6% YoY jump in sales of sugar division at Rs 9208.6 mn (sales volume up 35.2% YoY to 0.265 mn tonnes and healthy free sale realization of Rs 34.68 per kg). EBITDA for 3QFY13 is Rs 1183.3 mn as compared to loss of Rs 100.5 mn in 3QFY12.

EBITDA margin was at 12.5%. PAT for 3QFY13 is Rs 602.2 mn as compared to loss of Rs 640.1 mn in 3QFY12. Post the announcement of SAP in UP at Rs 280/qtl, the stock has corrected significantly and is trading below the fair value. We recommend investors to continue to hold the stock.

Source : Equity Bulls

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