Winsome Yarns.... A cheap Buy
at Rs 1.89
Penny stocks, midcaps and small caps which may be possible multibaggers. Shares in my watchlist
Friday, 8 April 2016
Gayatri Sugars .... Tripled
Gayatri Sugars is now trading at Rs 6.05 and the recommended price was Rs 2.10
Invest in Sugar stocks for gains in 2016. Sugar stocks have seen strong gains of 40-157 per cent from their beaten down levels at the end of September. The rally has been primarily fuelled by cyclical factors. The most crucial s the surge in sugar prices. International prices have gained 30 per cent after a gap of some years, as global output is likely to decline. Brazilian cane production remains affected by drought conditions and increased ethanol usage is likely to further reduce cane availability for sugar production. According to JPMorgan data, sugar output in China at 9.3 million tonnes (mt) is likely to be 11 per cent lower than last year’s, while the European Union’s production is also down 20 per cent.
For India, though it might continue to see surplus stocks, production is expected to decline compared to last year, owing to lower rainfall in Karnataka and Maharashtra. ICRA estimates production to be at 26.8 mt in the 2015-16 sugar year (October-September), 4.6 per cent lower than the 28.1 mt seen in the previous season. The likely fall in output, coupled with compulsory exports of four mt, might result in a significant decline in closing stocks to 7.6 mt this year from 10.1 mt in 2014-15, says ICRA. Thus, prices in the country have also surged, rubbing off positively on the share prices that have recovered, anticipating better profitability for companies.
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