BUY SUGARS...LOT MORE TO UNFOLD....

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, the largest exporter of sugar, is expected to produce less. Sugar surplus, which was earlier projected at around 8-10 mt, is now likely to come in at around 5-6 mt. For India, with a consumption of around 22 mt, this year’s production as well as higher exports will mean lower inventory. Both domestic and global developments point to a supply crunch, which can push prices up.

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.

http://www.dnaindia.com/money/report_stockwatch-less-rains-spell-a-price-bounty_1732413

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 IN JUNE. IN THAT PERIOD ALL SUGARS ARE AT THEIR YEARLY LOWS. SO I SUGGEST TO BUY FOR DOUBLE OR TRIPLE RETURNS FROM THEIR LOWS. WHEN THE MARKETS TAKE AS DIP, FOCUS TO BUY SUGARS. THE MORE THE INVENTORY, THE MORE PROFITS TO POUR. GOOD LUCK...----------------------------------------------------------------------------------------------------------

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."

http://www.moneycontrol.com/news/stocks-views/dalmia-bharat-sugar-can-test-rs-24-25-sp-tulsian_744159.html