Being bullish on the sugar sector, Zee Business Managing Editor Anil Singhvi has recommended a Buy on EID Parry for bumper returns in the coming months. This is the second such sugar stock the Market Guru has suggested this week to the traders. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

EID Parry is a mid-cap company with a market cap of around Rs 5000 crore, and this company has one of the oldest sugar plants in the country. Murugappa Group is the parent organisation of EID Parry, which along with sugar is also into the businesses of nutraceuticals.

See Zee Business Live TV Streaming Below:

Pointing out the reasons to buy this sugar stock, Singhvi says, lately, the sugar business in India and the global market is surging. EID Parry is doing extraordinary well in its business, plus Coromandel International is its holding company, which has around Rs 21000 crore market-cap. 

Coromandel International has around 56 per cent stake in EID Parry, which is around Rs 1100 crore, even at a 70 per cent discount the stake value comes at Rs 4000 crore, mentions Singhvi.

EID Parry’s cheap valuation makes this stock more lucrative, the market guru states. He sets a target of Rs 355 and Rs 365 per share levels. The stock is currently trading over eight per cent higher at Rs 350 per share. It touched Rs 355 per share as day’s high as against at Rs 323 apiece previous close. 

Singhvi earlier this week has said the sugar stocks have shown a huge action in their prices, as the overall sugar rates in April have jumped by around 15 per cent and in the last two days, surged around four per cent in the United States market.  

Singhvi suggests, like EID Parry, other sugar shares such as Dhampur Sugar, which was suggested earlier this week, Balrampur Chini, Praj Industries can be bought, as analysts suggest. All and all the sugar space looks in a good zone with respect to bumper gains.