Angel Securities has recommended neutral rating on Balrampur Chini Mills, in its March 04, 2010 research report.

“Sugar prices have been spiralling over the last one year owing to reduction in the area under cane cultivation and low global and domestic inventory. We expect sugar prices to rule firm in SY2010E, which will result in higher switch over from ethanol to sugar in Brazil as well as increase in cane acreage in India. Hence, supply would ease and prices are expected to soften globally in SY2011E. In case of Balrampur Chini Mills (BRCM), it is the most efficient player in the Indian Sugar industry considering its long Profitability trend compared to peers. However, at current levels Balrampur Chini Mills is available at fair valuations of 4.8x EV/EBITDA, 1.6x P/B and 1.5x Enterprise Value/Invested Capital on SY2011E Earnings. Hence, we Initiate Coverage with a Neutral view on the stock,” says Angel Securities research report.