In today's episode of 'Jain Saab ke Gems' show, stock market analyst Sandeep Jain, while speaking to Zee Business' Managing Editor Anil Singhvi, picked KCP Sugar & Industries Corp Ltd stocks for investors to make good gains.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Market analyst Sandeep Jain said that even though he recommended KCP Ltd. in June earlier this year, investors shouldn't confuse it with KCP Sugar & Industries Corp Ltd. The Company has a Rs 300-crore MCAP (Market Capitalization).

Talking about the Company, he said that it was started in the year 1941 by the late-Velagapudi Rama Krishna, an ICS, with the intention to work in the agro-based industries, which led to inspiring the inception of Andhra Sugars, Deccan Sugars.

The Company has two plants with a capacity of 11,500 tones each. 

On the occasion of the World Environment Day, 5 June 2021, Prime Minister Narendra Modi released the report of the Expert Committee on Roadmap for Ethanol Blending in India by 2025.

Fundamentals of the Company

Market analysts said that sugar is already in flavour. He mentioned the Government of India's plan for the ethanol projects, which involves the production of ethanol from sugarcane and molasses. He believed that the upcoming year will be good for ethanol, EVs, and all the green sector industry.

The analyst said that the Company's stock is available at the PE multiple of 8, and its stocks are lower than the book value. The book value is Rs 29.05, and the current value is around Rs 26.10.

The CAGR (Compound Annual Growth Rate) for 3 years stand at 62 per cent. If compared the September quarter results, then the Company had a PAT (Profit After Tax) of Rs 850 crore, despite incurring some losses last year. Generally, the Company earns between Rs 10 crore and Rs 11 crore.

Based on the TTM (Total 12 months), the earning of the Company last year was Rs 36 crore. Apart from this, the Company's PAT in March 2021 was Rs 23 crore and Rs 57 crore in March 2017, the Analyst said.

After reviewing the Company's balance sheet, he said that it is expected that KCP Sugar & Industries has huge reserves, and this is why it is lower than its book value. But it is common for a Cyclical sector like sugar. He gave a target of Rs 130 for KCP Sugar & Industries Corp Ltd stocks.

For more details, Watch Full Video Here:-