Bonanza has recommended to accumulate Shree Renuka Sugars on declines with a target price of Rs 130 in its April 9, 2009 research report.
“Shree Renuka is among the largest sugar producers in India. It has the largest sugar refining capacity in India. Country is likely to face Sugar shortage for the sugar year 2009 & 2010. Refining imported Raw Sugar can provide decent margins. At CMP Rs 100 SRS trades at 10 PE based on FY 09. Consolidated EPS of Rs 10 and at 7.7 PE based on FY10 Est. EPS of Rs13. Investors can enter the scrip at CMP Rs 100 for a target of Rs 130,” says Bonanza’s research report.
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