Buy Upper Ganges Sugar; target of Rs 150: Fairwealth Sec

“Sector: a) Prices at 25 cents/pound are ruling at 28 year high up by more than 80% this year but lower than their all time high of 66 cents/pounds. b) Sugar is only commodity which is a combination of 3 in 1 industry, namely FMCG, Power and Chemical. c) Supply is diminishing due to draught and wrong government policies in India. Demand supply mismatch stands at record high 7-10 million tonne per year. d) Regular increase in demand year after year thereby putting a pressure on supply, resulting in adjustment of sugar prices. e) Little scope for increasing supplies in next one year. “

“Upper Ganges Sugar & Industries growing with vision under the leadership of KK Birla Group Company, the business possesses huge management expertise. Major expansions already done to take benefit of the current bull run. Strong vision for the future. Company’s gross revenue on TTM basis grew by 40 % to Rs 479 crore in Q2FY10 as against Rs 341 crore previous year (Q2FY09). Company reported PAT of Rs 12.55 crore on TTM basis (Q2FY10) as against the loss of Rs 3.48 crore previous year (Q2FY09). Long term investors can buy above closing of 95 with a target of Rs 150," says Fairwealth Securities research report.

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