Being bullish on sugar stocks, Zee Business editor Anil Singhvi recommended Kothari Sugar amid good valuations and rising sugar prices in domestic and global markets.
This is the third such title of sugar that the market guru recommends buying since last week. He has already recommended Dhampur Sugar and EID Parry.
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Kothari Sugar, which currently trades at Rs 25 per share, is one of the oldest sugar companies in India. Singhvi sets three targets for this stock, Rs 27, Rs 29 and Rs 34 per share.
Likewise, Tradeswift director Sandeep Jain, praising the fundamentals of this action, set a long-term goal of Rs 35-40 per share, he adds, the company is reducing its debt, improving its balance sheet and its Market capitalization also increased from Rs. 70-80 crore to 200 crore.
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Singhvi says there is a strong upward trend in sugar stocks as sugar prices around the world rise. He adds that if the sugar grinding numbers are low, production will be less and therefore prices will rise.
The Market Guru last week said that sugar stocks had shown tremendous action of late. The overall price of sugar in April jumped about 15% globally.
Singhvi suggests, like Kothari Sugar, that other sugar stocks such as Balrampur Chini, Praj Industries and Dhampur Sugar can be bought, as analysts suggest the sugar space appears in a good area.