Stock market analysts have maintained ‘buy’ rating on Balrampur Chini stock with a short term target of Rs 55 in 3-4 weeks.

According to analysts, interested investors can purchase the stock between Rs 49-50 with a stop loss of Rs 45. If the stock market remains positive in the coming days, the stock pricing becomes more attractive, and reach above Rs 58 within the said time period.
 
Today (Jan 16), the company’s shares opened at Rs 51.75 on the Bombay Stock Exchange (BSE), as against its last closure at Rs 50.65 on Thursday (Jan 15). Current EPS & P/E ratio stood at 3.80 and 13.61 respectively. The share price has seen a 52-week high of Rs 121.25 and a low of Rs 29.70 on BSE.

According to analysts, the stock has been in a strong short-term uptrend from December 2, 2008 when it touched its 52-week low of Rs 29.7.

Presently, the stock has gained over 80% from this trough and is currently in a corrective down trend.

After correcting around 50% of the previous up-move, a new up-move seems to be unfolding currently. This leg of the up-move is likely to take the stock beyond its recent peak.

Technical Analyst, E Mathew said, “If you look at all the sugar stocks there is a distinctive pattern emerging and certainly you are seeing a temporary bottom if not a permanent bottom. Balrampur Chini is certainly looking interesting; I think the stock is forming good rounding bottom in fact it has already formed a rounding bottom pattern. I would put my bets on Balrampur. I see an upside from here, a move to at least above Rs 60-65 in the medium-term.”

The company has declared that a meeting of company’s directors will be held on January 30, 2009, inter alia, to consider and take on record of the unaudited Financial Results of the Company for the 1st quarter ended December 31, 2008 (Q1).