Mon, Aug 13, 2012 at 09:50 & AGAIN Published: Saturday, Aug 25, 2012, 8:00
SUGAR NEWS..... I SUGGESTED TO VIEWERS AND PEOPLE CLOSE TO ME TO BUY BUY SUGARS.....NOW THE TECHNICAL RECOMMENDATIONS ARE AIRED. I ALSO MENTIONED CLOSE TO ME ABOUT THE NEWS BUILDINGS....BUY IN ADVANCE AND ADD WHILE EVERY BODY IS BUYING , ALSO SELL EARLY WHEN THE TIDE TURNS.................
--------------------------------------------------------------------------------Stockwatch: Less rains spell a price bounty
Published: Saturday, Aug 25,
2012, 8:00 IST Expect a sugar shocker in days to come. Well, the
prices may not be as sweetening as the commodity itself. Food minister KV
Thomas revealed as much when he said the output for the next marketing year
(October to September 2012-13) is likely to be 23 million tonnes (mt) as
against 26 mt in the previous year.
While analysts had been
expecting a lower production all this while, the number is way less,
considering the Indian Sugar Mill’s Association had pegged it at 25 mt a few
weeks ago. The estimated shortfall is attributed to below-par monsoon rains in
the sugar-growing belt of Karnataka and Maharashtra .
There is also a seasonality element at work. The other worrying aspect is this
time around, local sugar prices have moved faster than the global level.
Initial reports indicate that Brazil India
One company in the sugar space
that’s worth a look is Balrampur Chini. For every rupee rise in the price, the
company’s earning per share increases by around Rs2.5. Apart from being the
largest sugar company in the country with a production capacity of 7 lakh
tonnes, a big positive for this company is it’s located in Uttar Pradesh, which
has not been affected as much as Maharashtra and Karnataka. In other words,
Balrampur Chini stands to gain handsomely from the rise in prices on account of
lower supply.
Over the past two months, share
price of Balrampur Chini has moved up from Rs48 to a high of Rs69, but has
since corrected to Rs64. The expected weakness in the market can bring the
prices down to Rs62 which can be a good entry point. With sugar prices unlikely
to come down anytime soon, Balrampur Chini can post decent growth, going
forward.
AT ONE TIME BYE BYE SUGARS IS NOW BUY BUY SUGARS.
I RECOMMENDED SUGARS IN JUNE-JULY PERIOD. I AND MY FAMILY HAD SOME
POSITIONS. I RECOMMENDED DALMIA AT 12-12.50
RANGE
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Moneycontrol » News » Stocks » Expert
Advice
Mon, Aug 13, 2012 at 09:50
Dalmia Bharat Sugar can
test Rs 24-25: SP Tulsian
Dalmia Bharat Sugar and Industries can test Rs
24-25 in next six months, says SP Tulsian, sptulsian.com.
|
Dalmia Bharat Sugar and Industries can
test Rs 24-25 in next six months, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18,
"Dalmia Bharat Sugar has three sugar mills with a capacity of 22,500 tonne
crushing per day with matching co-gen facility and & distillery of 80
KLPD. If you see the sugar performance of all the companies, the inventory gain
in some of the cases, we have seen that happening though, that has not got
reflected into the financial results of the Q1 of this company as well as of
Balrampur Sugar."
He further added,
"The main point or the triggers for these companies are the kind of inventory
they are carrying in their books and the unrealized gain they are sitting on.
In this case the company is having an inventory of close to about Rs 450 crore
as on 30th June after they have declared the results for quarter ended June
which has been quite good with PAT of close to about Rs 10 crore. So the
inventory of Rs 450 crore has an unrealized gain of close to about Rs 45
crore."
"If you see the
financial performance or the expected output from the UP it is estimated that
probably the UP based sugar mills are going to perform the best because of the
drought situation prevailing in the Maharashtra and Karnataka and more
specially in the Eastern UP where the monsoon has been quite good. Because if
you take a call on the Western UP and the Central UP the monsoon is slightly
inferior than what the Eastern UP region has seen."
"The companies
overall are likely to perform better in terms of the performance going ahead in
view of the firm sugar prices now prevailing at about Rs 34-35 per kg. So, the
crux for the recommendation that the whole of FY13 is likely to see an EPS of
close to about Rs 6 for this stock. If you go by the book value parameter also
the share is looking on fundamental basis quite cheap with book value of close
to about Rs 54-55 and with expected EPS of close to about Rs 6 for FY13 as I
said partly because of the inventory gain and partly because of the better
working."'
"I think this looks a
good midsize sugar mill, if you take a call on the Avadh Sugars, Upper Ganges or Simbhaoli Sugars or for that matter even
Dhampur, Dhampur though have a higher capacity. So taking a relative call on
all the sugar stocks and more specially if I focus on the UP based sugar mills
this stock looks quite good and one can expect a price of Rs 24-25 in next six
months or so."
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