This sugar stock fell 60% in last 1 year; buy this small-cap share below Rs 100 now and gain 70%

By: |
May 01, 2018 12:47 PM

We bring to you a small-cap sugar stock to buy under Rs 100 and gain up to 70% in next 6 to 12 months on your money. According to HDFC Securities, the stock is showing positive bias for the short term to medium term.

Photo for representational purposes only. (Image: PTI)

The domestic equities have seen over a month of the continuous surge in the headline indices Sensex and Nifty on the hopes of better-than-expected corporate earnings for the fourth quarter ended 31 March 2018. Among the major Q4 results so far, blue-chip companies such as Reliance Industries, Tata Consultancy Services, Infosys, Kotak Mahindra Bank, HDFC Bank, and Yes Bank have beaten the street estimates. The benchmark Sensex had risen more than 6% in the month of April reclaiming the mark of 35,000 from a level of 32,968 as on 28 March 2018.

We bring to you a small-cap sugar stock to buy under Rs 100 and gain up to 70% in next 6 to 12 months on your money. According to HDFC Securities, the stock is showing positive bias for the short term to medium term.

Shares of India’s third-largest sugar company by turnover Balrampur Chini Mills Ltd had lost more than 50% of its value in the last one year. The stock of Balrampur Chini Mills Ltd dropped as much as 57% to Rs 70.6 from a share price level of Rs 163.05 as on 2 May 2017. Yesterday only, shares of Balrampur Chini Mills Ltd 5.85% to Rs 70.6 from a share price of Rs 66.7 on NSE. Shares of Balrampur Chini Mills Ltd are categorised in the ‘A’ stocks on BSE and are a component of Nifty FMCG and S&P BSE 500 indices. Shares of Balrampur Chini Mills Ltd have a P/E ratio of 3.38 on NSE and the company commands a market capitalisation of Rs 1,645.2 crore on BSE.

The research and brokerage firm HDFC Securities have given a buy rating to the stock of Balrampur Chini Mills Ltd with a target price of Rs 120 which implies a potential upside of 70% from the current market price of Rs 70.6. “Price has been forming a “High wave” candle pattern on weekly chart which is a bullish reversal sign, and also price has completed five wave decline,” HDFC Securities noted in a report. Traders can buy the stock between CMP to Rs 62 with the stop loss of Rs 59 on the closing basis for the targets of Rs 77 to Rs 120, HDFC Securities added.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock mentioned.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bitcoin crashes to five-month low as price declines below $30,000 mark
2India’s crude output slips 6.3% in May, gas production jumps
3Sensex fails to hold fresh all-time highs, ends flat, Nifty follows; are bears knocking D-St’s door?