Sugar stocks climb as govt cuts GST on ethanol: Bajaj Hindusthan, Triveni Engineering, Shree Renuka gain up to 10%

Sugar stocks today gained on news of government slashing Goods & Services Tax (GST) on ethanol meant for blending under the Ethanol Blended Petrol (EBP) programme to 5 per cent from 18 per cent. Momentum continued in the sector during Monday's trading session as many stocks gained on the intraday basis. Several analysts on the Zee Business panel recommended their picks from the pack. This is what they recommended. Sugar stocks have been in action since the government earlier hinted that it may consider increasing sugar export quota for FY23 (April-June).

Stock to Buy/Hold: Bajaj Hindusthan | CMP: 18.89| Target: Upside 

Bajaj Hindustan shares hit 10 per cent upper circuit at Rs 18.89, up by Rs 1.71 or 9.95 per cent on the NSE. The stock has outperformed Nifty50 over a 12-month period by 26 per cent, giving 32 per cent returns against 6 per cent returned by the broader index, according to data sourced from Trendlyne. 

Analyst Simi Bhaumik had recommended the stock in the previous week and has asked investors to hold it for price target of Rs 22 and Rs 24.  

Bajaj Hindusthan is a small cap company with a market cap of Rs 2400 crore on NSE. According to Bhaumik, the stock looks strong on technical charts and suggested investors to hold the stock in their portfolio. 

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Stock to Buy/Hold: Triveni Engineering | CMP: 299 | Target: Upside 

Another panellist and market expert Kunal Sarogi recommended a buy call at current level. The stock was trading at Rs 298.85 on the NSE, up by Rs 9.85 or 3.41 per cent. He said that the stock formed an exhaustion gap structure a few trading sessions back and now that gap appears to be getting narrower. He suggested buying for a target of Rs 317/322 and keep a stop loss at Rs 295.  

Stock to Buy/Hold: Shree Renuka Sugars | CMP: 64| Target: Upside 

The stock was trading up by Rs 4.50 or 7.56 per cent around this time. Expert Sumeet Bagadia recommended buying the shares of Shree Renuka for price targets of Rs 70 and 75. He suggested to keep a stop loss at Rs 60.   

Balrampur Chini 

Balrampur Chini shares were also up by more than 2 per cent to quote Rs 402.90 on NSE. 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)