Multibagger stock: Due to the Government of India’s (GoI) ethanol blending program, most sugar stocks have rebounded north. The shares of Balrampur Chini are part of these sugar stocks. This is one of the multibagger stocks in 2021, which recently hit a new lifetime record of ₹515 per share after allocation to ₹440 per action level. According to stock market experts, the stock has seen a retracement from its new high, but it still looks positive on the chart pattern. They advised positional investors to buy the stock at current levels as multibagger stock could reach its new high of ₹525 in the short term.
Expects further rise in Balrampur Chini share price; Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “India ethanol blending announced by Indian government aims to increase ethanol blending by petroleum manufacturing companies up to 20-23% so that it is currently around 8-9% only.This is due to supply and demand constraint.So most of the ethanol produced by sugar companies is consumed by sugar manufacturing companies. oil. So, this ethanol policy has created new revenue streams for the sugar manufacturing companies. As Balrampur Chini Mills deals in sugar, they also benefit from the policy of this Indian government.”
Avinash Gorakshkar went on to add that Balrampur Chini Mills is involved in gas supply of white goods like refrigerators, air conditioners etc. As the demand for these white goods is expected to increase over the next two quarters, it should also increase the company’s business volume in the coming earnings seasons. The Profitmart Securities analyst added that Balrampur Chini Mills also has a profitable business in the automotive sector. They produce nylon tires for the automotive sector, which ensures a sustained volume of business throughout the year. As these three business segments of the sugar company are a profit-making business, Avinash Gorakshkar of Profitmart Securities advised positional investors to add this stock to their portfolio.
Expect this multibagger sugar stock to hit a new high; Mudit Goel, Senior Research Analyst at SMC Global Securities, said: “Balrampur Chini shares recently hit their new high of ₹515 after giving an escape to ₹440 levels each. The sugar stock has seen some retracement from its new high recently but it still looks positive on the chart and one can buy this counter at current levels for an immediate short term target of ₹525 maintaining a strict stop loss at ₹440 levels each.”
Balrampur Chini is one of the multibagger stocks in 2021 as sugar stock jumped by ₹203 to ₹477 levels per share, rising almost 135% over this period.
Balrampur Chini Mills recently announced an interim dividend of ₹2.50 per share of capital of Re 1 each of the company for the financial year 2021-22.
Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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