Buy Ugar Sugar, target of Rs 18: LKP Shares

LKP Shares has recommended a buy rating on  Ugar Sugar Works with a target of Rs 18 in its January 16, 2009 research report. "USW derives more than 60% of its revenues from sugar, 30% from distillery and IMFL operations and 10% revenues from Power, which it sells to Tata Power Company at Rs 7 per unit (as against Rs 5 per unit last fiscal). Despite being a highly geared company we believe that USW trading at 3xFY’10E earnings is a good trading bet and investors can accumulate the stock at current levels with a medium-term price target of Rs 18 which is a good 50% price appreciation. We recommend a BUY on USW," says LKP Shares' research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

......