See 20-25% appreciation in Balrampur Chini: Sharekhan

See 20-25% appreciations in Balrampur Chini, says Hemang Jani, Sr Vice President of Sharekhan.

Jani told CNBC-TV18, "We think that allowing raw sugar import would be positive for a company like Shree Renuka because they typically import the raw sugar and convert it into finished product. But we like Balrampur Chini because we have seen internationally the prices over the last two months have gone up and after the government allowed the export of sugar of 5 lakh tonne even in the domestic market we have seen that the retail prices have gone up from about Rs 28.5 to 29 per kg to about Rs 31 per kg and we think that this year FY12 would be good for some of the sugar companies because the lower base effect, better realisations even on the cane price we had seen a lot of pressure for some of these companies. So with 25-30% kind of growth this company has already announced a buyback at about Rs 75. So we think that 20-25% appreciation in the current environment is pretty much possible." Disclosure: It would be safe to presume that I personally and my company have interest in the above stock.