Buy Balrampur Chini With Stoploss Of Rs 100: Hitendra Vasudeo

Buy Balrampur Chini With Stoploss Of Rs 100: Hitendra VasudeoStock market analyst Hitendra Vasudeo of stockmechanics.com maintained ‘Buy’ rating on Balrampur Chini to achieve an intraday target of Rs 108.90.

According to Mr. Vasudeo, interested traders can buy the stock around Rs 104.90-Rs 102.20 with a strict stop loss of Rs 100.

Mr. Vasudeo also said that if the stock market remains on the positive track, the stock will hit another target of Rs 115.60 in today’s session.

The shares of the company, on Wednesday (June 24) closed at Rs 106.20 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 5.83 & 18.56 respectively. The share price has seen a 52-week high of Rs 110.50 and a low of Rs 29.70 on BSE.

Technical Analyst, Vijay Bhambwani is of the view that Shree Renuka Sugar, Balrampur Chini and Bajaj Hindustan are first three picks in the sugar space.

Bhambwani said, "I am fairly bullish on commodities and agri commodities more so. If you are having a 9 to 12 month view on this sector I think Shree Renuka Sugar, Balrampur Chini and Bajaj Hindustan in that order of preference would be the first three picks in the sugar sector. I expect a substantial capital appreciation from present levels maybe in excess of 18-20% in the coming 9 to 12 months time frame."

For the quarter ended March 2009, Balrampur Chini Mills has recorded a marginal growth in its standalone net profit.

During the period, the company’s net profit surged 0.82% to Rs 661.90 million as against Rs 656.50 million during the corresponding quarter last year.

Net sales during the three month period climbed up by 15.93% to Rs 3,571.10 million, whereas total income surged 14.84% to Rs 3,573.40 million.

The company posted EPS of Rs 2.59 during the quarter, registering 0.78% growth over previous year period.

During the quarter, the company’s operating margin rose by 592.68 basis points to 36.73% as against last year period. Interest cost surged 29.74% to Rs 299.30 million whereas depreciation cost declined 12.66% to Rs 267.00 million over previous year period.




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