Premium| Listen to this article |
Multibagger stock: On account of Government of India's (GoI's) ethanol blending programme, most of the sugar stocks have been rallying northward. Balrampur Chini shares are one of such sugar stocks. It is one of the multibagger stocks in 2021, which recently hit new life-time high of ₹515 per shares after giving breakout at ₹440 per share levels. According to stock market experts, the stock has witnessed retracement from its new peak but it is still looking positive on chart pattern. They advised positional investors to buy the stock at current levels as the multibagger stock may climb to its new peak of ₹525 in short term.
Expecting further rise in Balrampur Chini share price; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The ethanol blending in India announced by the GoI aims to raise ethanol blending by oil manufacturing companies up to 20-23 per cent whereas it is currently at around 8-9 per cent only. This is because of the demand-supply constraint. So, most of the ethanol produced by sugar companies are getting consumed by oil manufacturing companies. So, this ethanol policy has created new avenue for revenue to the sugar manufacturing companies. As Balrampur Chini Mills deals in sugar, they are also getting the benefit of this GoI's policy."
Avinash Gorakshkar went on to add that Balrampur Chini Mills have presence in gas supply to white goods like refrigerator, air conditioners, etc. As demand for such white goods products are expected to rise in next two quarters, it is also expected to boost business volume of the company in upcoming result seasons. Profitmart Securities analyst went on to add that Balrampur Chini Mills have a profitable business in auto sector too. They produce Nylon tyres for auto sector that gives them a sustained business volume throughout the year. As all these three business segments of the sugar company is a profit making venture, Avinash Gorakshkar of Profitmart Securities advised positional investors to add this stock in one's portfolio.
Expecting this multibagger sugar stock to climb to a new peak; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "Balrampur Chini shares recently climbed to its new peak of ₹515 after giving breakout at ₹440 apiece levels. The sugar stock went through some retracement from its new high made recently but it is still looking positive on chart and one can buy this counter at current levels for immediate short term target of ₹525 maintaining strict stop loss at ₹440 apiece levels."
Balrampur Chini is one of the multibagger stocks in 2021 as the sugar stock surged from ₹203 to ₹477 per share levels, logging near 135 per cent rise in this period.
Balrampur Chini Mills has recently announce interim dividend of ₹2.50 per equity share of Re 1 each of the company for the Financial Year 2021-22.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!