2 Sugar Stocks, That Outperformed Markets, Get Buy Call For 40% Return: ICICI Direct

ICICI Direct has assigned buy call to 2 small cap sugar sector stocks namely Balrampur Chini Mills Ltd and Dalmia Bharat Sugar and Industries. According to ICICI Direct, "BCML's share price has gone up 3x in the last five years (from Rs 116 in February 2018 to Rs 362 in February 2023). If you buy these two stocks now, you can get maximum return of 40%. Check details below:

Buy Balrampur Chini Mills: The current market price of Balrampur Chini Mills is Rs 389. 00 apiece. ICICI Direct has suggested investors to buy Balrampur Chini Mills with a target price of Rs 435 apiece. if you buy Balrampur Chini Mills share now, you can get potential return of 12%.

Its 52-week high is Rs 525.70 apiece and 52-week low is Rs 306.80 apiece. Its market capitalisation is Rs 7,940.22 crore. The stock gave a return of 8% in last 1-month, 5% return in last 6-months, and declined 22% in last 1-year.

It gave a return of 239% in last 3-years when Sensex surged 69%. It soared 5% in last 6-months when Sensex fell 4%. It reflects the sugar stock outperformed markets in the last few years.

According to ICICI Direct, "We expect 25.6% distillery volume CAGR, which would boost the company's earnings by 11.1% CAGR during FY22-25E. We maintain our BUY rating on the stock. We value the stock at Rs 435, valuing the business at 14x FY24 PE."

Buy Dalmia Bharat Sugar and Industries: ICICI Direct has suggested investors to buy Dalmia Bharat Sugar and Industries with target price of Rs 490 apiece. Current market price of the stock is Rs 351 apiece. If you buy Dalmia Bharat Sugar and Industries share now, you can get a return of 40%.

The stock outperformed Sensex in last few years. In last 2 years, it gave a return of 103% while sensex gave a return of 14%. Dalmia Bharat soared 522% in last 3-years while Sensex jumped 69%.

The 52-week high of Dalmia Bharat Sugar is Rs 568.65 apiece while 52-week low is Rs 282.10 apiece, respectively. Its market capitalisation is Rs 2,840.97 crore.

According to ICICI Direct, "We value the stock at Rs 490, ascribing a multiple of 12x FY24 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.