💡 Balrampur Chini Mills 💡

• BCM (Balrampur Chini Mills) major revenue comes from sugar of about 75% and Ethanol contributes about 18% and the rest is through Bagasse
• BCM market cap is at INR 8637 Cr
• BCM has a co-generation capacity of 165.20 megawatts. Of the total power generated, the Company consumes nearly 37% and markets the rest to the state electricity grid
• Sugar production tends to be diminishing, as BCML is allocating its resources towards producing ethanol. Working in the model of Economies of Scale
• Company has been consistently reducing its debt for the past three years
• The company has a total of 76500 TCD (Tons of Cane per Day) cane crushing capacity. In terms of ethanol production, the company has a capacity of 520 KLPD (which is getting raised to 1050 KLPD)
• Company is shifting from C-Heavy molasses route to B-Heavy routes to produce ethanol. From 1-ton sugarcane crush B-Heavy produces 22L ethanol + 100-105Kg Sugar. The C-Heavy route gives 11L ethanol + 115-120Kg Sugar. The least preferred BCML, the Syrup route produces 60-65L ethanol, with no sugar
• Among the first in the industry to install incinerator boilers in the distillery to eliminate effluents discharge that made it possible to run the distillery for 330 days (against the regulated 270 days)
• Ethanol capacity is 19 litre Cr right now and it will be expanded to 35 litre Cr in November 2022. Ethanol contributes about 18% of the revenue right now but after the CAPEX realization, the distillery business will contribute about 35% of the revenue
• The EBIT of Ethanol is at 40.85%, which is way higher than the sugar segment whose EBIT is at 7.54%

TECHNICAL ANALYSIS 📈
• Stock has been moving in sideways for the past 15 months
• RSI indicator shows the stock is moving towards the overbought region, it gives the first indication to go long on the stock
• In the MACD indicator, the 12-day MACD curve (Yellow curve) cuts the 26-day MACD curve (Blue curve) and moves above the 26-day MACD curve, it gives the conformation to go long on the stock. Check whether the volumes are higher than the 20-day average before entering the trading

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Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose

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