ICICI Direct Recommends 2 Sugar Stocks That Can Soar Up To 40%, Buy

ICICI Direct has recommended investors to buy 2 sugar stocks that can give returns up to 40%. These two sugar stocks are Triveni Engineering & Industries Ltd and Dalmia Bharat Sugar and Industries Ltd. Board of directors of both the companies also recommended dividend for the FY 2022-23. Both the stocks gave over 400% return in last 3-years. Check details below:

1. Buy Triveni Engineering & Industries Ltd: ICICI Direct has assigned buy call to Triveni Engineering with target price of Rs 370 apiece. Current market price of Triveni Engineering share is Rs 274.05 apiece. If you buy Triveni Engineering share now, you can get potential upside of 35%. Triveni Engineering shares gave return of over 1% in last 1-year, 92% in last 2-years, and 598% return in last 3-years. The company has a market capitalisation of Rs 5,998.90 crore.

Board of Triveni Engineering recommended a dividend of 325% i.e. Rs.3.25 per fully paid up equity share of Re I/- each of the Company for the Financial Year ended March 3 I, 2023, subject to approval of the shareholders at the ensuing Annual General Meeting ('AGM')."

According to ICICI Direct, "We roll over our valuation to FY25E and change the valuation method to SOTP valuing the engineering business at 14x EV/EBITDA and sugar business at 12x PE to arrive at a target price of Rs 370/share."

2. Buy Dalmia Bharat Sugar and Industries Ltd: ICICI Direct has suggested investors to buy Dalmia Bharat Sugar share with target price of Rs 490 per share. Current market of Dalmia Bharat Sugar share is Rs 351.85 per share with intraday gain of 0.64% on BSE. If buy Dalmia Bharat Sugar share, you can get 40% return.

The company's market capitalisation is Rs 2,847.85 crore. If you buy Dalmia Bharat Sugar and Industries share now, you can fetch 40% potential upside. Dalmia Bharat Sugar and Industries stock gave return of 3% in last 1-year, 7% in last 2-years, and 429% in last 3-years.

The Board of Dalmia Bharat recommended final dividend of Rs. 1/- (50%) per equity share of Rs. 2/- for the financial year 2022-23 to the shareholders for declaration at the ensuing Annual General Meeting of the Company.

According to ICICI Direct, "DBS is expanding its distillery capacity from current 710 KLD (22 crore litre pa) to 1100 KLD (32 crore litre pa) by September 2024 by adding grain-based ethanol capacities. Distillery segment to contribute 45% to revenue by FY25. We value the stock at | 490, ascribing a multiple of 10x FY25 earnings."

Disclaimer: The stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.