Expect Oudh Sugar June PAT between Rs 10-15cr: Chugh

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Expect Oudh Sugar June PAT between Rs 10-15cr: Chugh

Investment Analyst, Ashish Chugh is of the view that one can expect Oudh Sugar Mills June PAT between Rs 10-15 crore, which makes total profit around Rs 27-30 crore and on current equity of Rs 20-22 crore it will make an EPS of Rs 15.

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Investment Analyst, Ashish Chugh is of the view that one can expect Oudh Sugar Mills June PAT between Rs 10-15 crore, which makes total profit around Rs 27-30 crore and on current equity of Rs 20-22 crore it will make an EPS of Rs 15.

Chugh told CNBC-TV18, "Oudh Sugar Mills is KK Birla group company, this has got four sugar mills; three are located in Uttar Pradesh and one in Bihar. The total crushing capacity is 28,700 tpd. Besides this the company has got 160 kiloliter per day distillery and 60 MW power co-gen. Sugar prices off late have been on a run and people say they are at a 30 year high as of now. Oudh Sugar had imported a substantial amount of raw sugar in the month of February-March and sold off a substantial amount of that in the month of June, in the quarter April to June. They have been buying raw sugar, refining it and importing it and selling it. Again in the month between April to July, they have again imported a substantial amount of raw sugar."

He further added, "For the first nine months of the current financial year there has been a smart increase in total revenues. Profits of the company are at about Rs 17.5 crore as against a loss of Rs 1 crore. I believe June quarter is going to be another good quarter for the company since the financial year of the company end in month of June; the results of June quarter have not been declared yet. But I believe the profit for June quarter can be anywhere between Rs 10-15 crore which makes total profit around Rs 27-30 crore and on current equity of Rs 20-22 crore it will make an EPS of Rs 15. So given all these factors, given the fact that they are holding large inventory of raw sugar, I think the  numbers for the next few quarters should continue to be good."

Disclosure: I may have a vested interest in this stock.