Sugar Scrips…What’s in store

Avadhsug : This had t/o of 2133 Cr in FY19, at 10% profit on sales its EPS would be 100/- and discounted at PE of 8 its share price might well touch 800/- .

Bajajhind : This had t/o of 6902 Cr in FY19, at 10% profit on sales its EPS would be 1.60 and discounted at PE of 6 its share price might well touch 9.60.

Balramchin : This had t/o of 4328 Cr in FY19, at 10% profit on sales its EPS would be 19.20 and discounted at PE of 10 its share price might well touch 192/- .

Dhampursug : This had t/o of 2973 Cr in FY19, at 10% profit on sales its EPS would be 42.40 and discounted at PE of 8 its share price might well touch 339.20 .

Dwarkesh : This had t/o of 1120 Cr in FY19, at 10% profit on sales its EPS would be 5.60 and discounted at PE of 8 its share price might well touch 44.80.

Triveni : This had t/o of 3215 Cr in FY19, at 10% profit on sales its EPS would be 12.20 and discounted at PE of 10 its share price might well be 122.00.

KMSug : This had t/o of 404 Cr in FY19, at 10% profit on sales its EPS would be 8.80 and discounted at PE of 6 its share price might well touch 52.00.

Dalmiasug : This had t/o of 2133 Cr in FY19, at 10% profit on sales its EPS would be 24.30 and discounted at PE of 8 its share price might well touch 194.40 .

Looking at sugar scenario now which is much improved than last year, it is not much difficult for companies to have 10% net margins and given the shortage of sugar in international markets the margins may even be as good as 15%. We have discounted the EPS at most conservative level of PE.

So keep above in mind while dealing in sugar scrips.

Krishna Khandelwal

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