ICICI Direct has given Buy recommendation for Avadh Sugar with a target price of Rs. 890 in its research report issued on May 12, 2022
ICICI Direct’s research report on Avadh Sugar
Avadh Sugar has 31800 TCD sugarcane crushing capacity, 325 KLD distillery capacity & 74 MW saleable power capacity. The company produces 6.0 lakh tonnes (lt) of sugar, 8 crore litre of ethanol & 15 crore units of saleable power. The company has increased its distillery capacity from 240 KLD to 325 KLD with a capex of Rs 135 crore. This would help it increase its annual ethanol production to 11 crore litre.
We continue to maintain our BUY rating on the stock. We value the stock at Rs 890, valuing the business at 8x FY24 PE.