Bajaj Hindustan Share Price 23rd Nov 2015
Bajaj Hindustan Share Price has doubled since the time we initiated our Buy call at 11-12 Rs and now we are seeing a mild pullback in the share price. We have recommended to Buy and Hold Bajaj Hindustan at 11-12Rs and we reiterate our Buy rating on the stock. In our view this stock is going to be one of the star performers till Oct 2017 and we see the Stock Price moving higher towards 120 Rs target yes we it a 10 X stock as per our analysis.
There have been a few very savy and intelligent investors who are recommending to exit the sector and sugar stocks as a whole as their thought process questions them that has sugar made money for investors over longer term or has it really created wealth for investors over longer term and I totally agree with what they are saying but the important point they themselves are unknowingly admitting is the mess in the sector is due to massive and extreme Government regulation and intervention. As per our analysis whatever could go wrong in sugar sector is already in the price and we do not see any massive or significant fall in Bajaj Hindustan share Price / renuka Sugar share price. Can the stocks correct a little more form here ? sure of course they can Corrections will come and go but the overall longer term trajectory from now for the next two years is up in sugar stocks. Just think when we initiated buy call in renuka sugar and bajaj hindustan as per market cap of sugar stocks anyone could have bought all the sugar mills in India within 800 crore and I personally think that was way too cheap for the second largest sugar producing nation in the world. So most of the intelligent guys are thinking what will happen to this sector why will it rally up so aggressively and I am sharing my astro cycle predictions.
Bajaj Hindustan News / Sugar Sector Update
Sugar will be decontrolled before Dec 2016. We take the case study of IOC, BPCL and HPCL the situation in these oil marketing companies was absolutely identical. There was extreme government regulation and due to the regulations the oil marketing companies were bleeding. The then UPA Government first started issuing Oil bonds for some time after a few months some smart people in North Block realized that this is not going to be the longer term solution and then Rangarajan committee was set up which in its report advised the Government to decontrol the sector. The Government implemented the committees recommendations as there was no other choice. The same absolute identical situation has arrived in sugar sector. They have over 12000 Crore out standing payments to be made and they do not have any significant money to meet those payments hence the only way out is one time debt settlement and decontrol of sugar sector further some compensation mechanism will be enforced which will ensure sugar prices and cane prices are almost in line with international market prices.
Raw Sugar now has completed a 30 year cycle bottom as per our analysis and is headed at least towards 41$ (currently the price is 14.80) We have clearly predicted the Sugar cycle bottom for sugar way back in July 2015 and we have mentioned amply clearly from Aug 2015 we will begin the bullish phase in sugar sector. We do not see a good harvesting season for sugarcane and see a very steep fall in production. We do not see the sugar production over 20 million tons for this year and it will be a significant trigger for raw sugar prices. Further we do not see Brazil producing over 21 million tons this year due to adverse climatic conditions which will effect the crop. Our astro cycles are very clearly indicating one of the most amazing cycles for sugar has begun and one again I am saying no one today will understand why the sugar stocks will keep rallying for the next two years. Ups and downs will keep coming but the stocks will keep making classic higher tops and higher bottoms. When news of production short fall from India and Brazil hit the markets or on the news wires when you will read Bajaj Hindustan News / Renuka Sugar News all the reasons will then become evident and at that juncture traders and investors will realize what we were predicting today. Anyways we are not in the cmap which feel that rally in sugar sector is a trading rally. We feel that this sector over next two years will be the best performing sector. No one today is owning the stocks, it is the least populated trade in the market. I will keep updating more as time permits.
Good Trading To You!