Hold Balrampur Chini With Stop Loss Of Rs 69
Stock market analyst Pankaj Jain of Satguru Capital is of the view that investors can hold Balrampur Chini Mills Ltd stock for 7-9% gains in the short term.
Mr. Jain said that the interested investors can hold the stock with a stop loss of Rs 69.
Today, the stock opened at Rs 73.95 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 167.30 and a low of Rs 67.10 on BSE.
Current EPS & P/E ratio stood at 8.24 and 9.27 respectively.
During the last financial year (2009-10), the company's sugar production from cane surged 10%.
The company said that declining rates will not affect profitability in the coming quarters.
Balrampur Chini made 487,000 tonnes of sugar for the sugar year-ending in September as against 441,000 tonnes in 2008-09.
Chief Financial Officer Kishor Shah said that all mills of Balrampur Chini, which has nine sugar factories in Uttar Pradesh, have blocked up crushing because of tight supply of cane.
He added that realization in the coming quarters will fall down to Rs 30 per kg from Rs 35.86 in Jan-March quarter.