Scripscan:Sukhjit Starch & Chemicals Ltd
cmp:230
Code:524542
Story:SSCL's products find application across wide range of industries – food processing, paper, pharma, textiles etc. All these industries are adding capacities to meet growth in demand for their product which in turn will increase demand or company's products. Also demand for starch derivatives is rising in India, people have become quality conscious as it is used in food and pharma industry and are demanding better quality products. Maize based starch and its derivatives industry is a multi-billion dollar industry in US, while in India it is estimated to be only at Rs.17 billion and hence has tremendous potential to grow.Company is also now looking at exploiting the vast export market.Company's performance largely depends on availability and cost of raw material (mainly maize) which is subject to natural vagaries. This year the maize stock has been lower and hence prices of maize are higher but industry is in position to pass on increased raw material costs.At CMP of Rs.230, the share is trading at low single digit PE its expected forward earnings.Going ahead, company has a good growth potential in view of its strong track record, rising demand from user industries and capacity expansion.A buy at present levels which can give 20% return in an year's time.
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
