KMSugar

Friends,

People look for multi-bagger stocks and when one is in site they ignore it.

Look at finances of KMSugar for last 5 years i.e. since FY16. It has added Rupees 11.49 to its book value per share since FY16 and would add between Rs 2/- to 4/- for current year. This is after it paid over Rs 34 cr by way of tax since then. Its reserves now stand at over 170 crs against capital of 18.40 crs (Rs 2/- paid up per share).

Its turnover is up by over 50% since FY16 which can happen when capacity was enhanced through capital expenditure which was financed by retained earnings as no dividends were paid.

Now it this is not a growth stock or stock that is value investment then what is. I don’t mean that it should command at better discounting then rest of stocks in sugar sector but at moderated discounting of 5 in terms of PE this should stock should command a price above 15/-.

What are you waiti g for then and not be actively picking this stock at current price of about Rs 10/-.

Needless to say that if sugar industry show any signs of improvement then its stock price will be more then double.

HariOm,

Krishna Khandelwal

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s