Most of the UP stocks have been running apart from KM so KM SUGARS is obviously in focus and may be ripe for a sharp rally, on the other hand we might have an element of surprise to the UP based stocks that is the UP state elections in 2017.
So next could be south based stocks and as Karnataka elections are due in 2018 that's an year after UP.
Coming back to the company: Ugar Sugar Works Ltd is having its factories in the state of Karnataka.
The company has an TCD Capacity of 18000 .
The company has a debt of only 190 crores and the march 2016 quarterly net profit was at almost 62 crores.
The company clocked an quarterly EPS of 5.48 in March Quarter and with half year losses the full year EPS came in as 1.00 against a loss of 0.29 EPS in last fy.
With sugar prices going up and strong reports of global shortage of sugar going forward if the company delivers four quarters with an EPS of 5.48 that would make the annual eps of 21.92 and if we give just 5 times rating to that the stock price works at almost 110.
On the down side 18 good be a good support for the stock to enjoy a long-term ride.
Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.