Out of the 35 sugar stocks on the BSE, 30 rallied in Thursday s trade. Avadh Sugar soared 13.20%, Magadh Sugar jumped 12.8% and DCM Shriram rose 10%. Analysts expect further upside in some of these stocks.
“A company which could grow very aggressively over the next two years and has significant re-rating potential, is VA Tech Wabag which has been doing very well in terms of profitability, growth, margin improvement, cash flow generation and the balance sheet is now totally cleaned up and debt free. ”
“We will see continuous possible improvement in margins and profitability for many of the auto companies. I would be positive on Tata Motors, we own Mahindra & Mahindra and we own Maruti also. Bajaj Auto, I would have liked to own but we could never buy and then it never corrected but I think that will also do well.”
“Near term, some of the hospital results which have come up, show some stress on margins. We need to let the results, etc. come out and then we can evaluate. Structurally, it is a good story but we have to buy at the right prices because we cannot be buying at any price and at any valuation.”