Sharekhan Broker Research reports

Balrampur Chini Mills’ (BCML’s) Q2FY2025 numbers were affected by government restrictions in distillery operations and lower crushing volumes. Revenues fell by 16% y-o-y and EBIDTA fell by 70% y-o-y (EBIDTA margins decreased to 3.8%).

Topline rose 17% y-o-y and 5% q-o-q, with operating Profit of Rs. 243 crore and adjusted
PAT of Rs. 112 Crore surpassing our estimates, attributed to margin enhancements in
LSC and POC.

PAT rose 43% y-o-y to Rs. 92 crore, supported by strong revenue growth of 29% y-o-y and good OPM of 22.2%. OPM improved by 306 bps led by lower other expenses.

We retain a BUY on Ramco with a revised PT of Rs. 1,060, marginally increasing our valuation multiple considering its strong cost competitiveness and future capacity additions at minimal capex requirements.

We retain a Buy rating on Shree Cement with a revised PT of Rs. 28,800, factoring a marginal downward revision in operational profitability led by lower volume growth than earlier envisaged.

Jyothy Labs Limited’s (JLL’s) Q2FY2025 performance was muted with revenue and PAT remaining flat y-o-y. OPM at 18.9% rose by 38 bps y-o-y.

We retain BUY on JKL with a revised PT of Rs. 900, factoring downwardly revised estimates partly offset by roll forward of valuation to FY2027E earnings.

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates.

We retain a Buy rating on Gateway Distriparks Limited (GDL) with a revised PT of Rs. 105, factoring downwardly revised estimates and expecting a growth revival, led by rise in EXIM growth.

Britannia’s Q2FY2025 numbers missed expectations due to lower-than-expected OPM at 16.8% (versus expectation of 19%) dragged down PAT by 9% y-o-y. Volume growth sustained at 8% better than large peers.