Our Focus

We can earn a good return on our investment, but we have to invest in stocks. Before investing we have to identify and analyze the sweet stocks which can give delicious profit. Today we have found a company that is ready to give good ROI and the fundamentals are strong.

Market Sentiment Analysis

Currently, the market is in a downtrend and trading near one strong support. We are seeing a fall on every rise due to global sentiments. However, our market is showing strength and trying to bounce from the demand zone. On the last trading session of FY 22-23, nifty has given a breakout to Double Bottom. The next hurdle for Nifty is around 17500 which needs to cross with strength. Then we can say that the market trend has changed and immediate support is around 17200.

In this panic & volatile market, Balrampur Chini is showing the strength of up moves. Let’s discuss step by step.

Company Business Module

Balrampur is one of the biggest manufacturers of Sugar, Ethanol, & Alcohol. Also, they produce electricity, heat, bagasse, and agri-input products. These products have good demand in the market and they will increase. The overall business module is strong.

Technical Analysis

Overall weekly chart structure is bullish from May 2020. The share price has made a bottom at 80 after the first lockdown and after that, it has shown levels of 500. The reason was increasing sugar demand and ethanol use in petrol. From April 2022 share price started to show profit booking and it came to 300. The 300 rupees levels is a very good demand zone and it worked very well. Also, the share price takes support from the trend line.

Fundamental Analysis

1. Products are essential and demanding.
2. Debt is nominal and the company reduces debt.
3. Profit growth is increasing.
4. Promoters & DIIs have increased their shareholding.
5. ROE & ROCE are good.

Why Share Price Can Go Up?

The share price has closed above the down trendline and confirmed the Inverted H&S breakout. That is the trend change confirmation and volumes increased. Also, the demand for products is increasing. As per our view, the share price is again ready for 500 levels. The strong support is 360 and the coming resistances are 500/525.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. Readers are advised to consult their Investment advisor before making any decisions based on the above write-up.