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Sunday, May 10, 2009

Best Large Cap, Mid Cap & Small Cap Stocks To Buy From Sugar Sector For Investing

Analyst recommendations from various stock brokerage houses based on detailed stock analysis. These stock reports provide a high level view on individual stock based upon overall sector guidance.

LARGE CAP STOCKS

Shree Renuka Sugars
CMP: Rs 114

On account of high sugar prices and the company’s decision to import raw sugar we remain bullish on the company. Revenues from the sugar segment rose 84.4% to Rs 293.9 crore. SRSL, which possesses sugar refineries with a total capacity of 4,000 TPD in Karnataka and the port of Haldia, respectively, is well positioned to benefit from the alteration of import policy of sugar.It is also benefitted from price discrepency in the global and domestic market.

Balrampur Chini Mills
CMP: Rs 78

Net sales for the six months ended March 2009 increased to Rs 786.6 crore against Rs 742.3 crore last year. Net profit rose 79.1% to Rs 117.5 crore. The lower recovery rates have resulted in lower production of about 14.2 MT for the year 2009 in the country.

With consumption pegged at 23 MT a favourable demand supply scenario for the sugar industry has emerged, wherein a surge in sugar prices is imminent, which will increase the revenues of the company.

MID CAP STOCK

EID Parry
CMP: Rs 191

EID Parry belong to the Murrugappa group and is one of the largest producers of sugars in India. It manufactures and markets Bio-Pesticides and Neutraceuticals apart from sugar.

The company had exceptional income of Rs 7,46 crore on sale of stake in joint venture company Parryware Roca Pvt Ltd and Rs 51.2 crore from sale in Parry Monsanto Seeds Pvt Ltd in the last year. We expect the revenue to increase at a CAGR of 22% to Rs 970 crore in FY10.

SMALL CAP STOCKS

Dhampur Sugar Mills
CMP: Rs 44

DSM sells a wide range of products — refined sugar and plantation white sugar, power, ethanol, other chemicals. With a stock of 1.35 lakh tons at the end of Q1-FY'09 we expect DSM to crush up to a maximum of 2.8 million tons this fiscal by operating for 115 days.

DSM sells refined sugar under the brand - Dhampure. It has a power capacity of 145mw with an exportable surplus of 80 mw.

Ugar Sugar Works
CMP: Rs 21

It is the flagship company of the Shirgaokar Group of Companies. It is a pioneer of sugar production in the state of Karnataka with a crushing capacity of 10,000 TCD, 75 KLPD distillery and 45MW of co-generation.

It derives more than 60% of its revenues from sugar, 30% from distillery and related products and 10% revenues from power. We expect co-generation from the Jewargi unit to significantly improve profitability from FY10 onwards.
Source: EconomicTimes

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