Stock market analyst Ashwani Gujral has maintained ‘Buy’ rating on Shree Renuka Sugars to achieve an intraday target of Rs 160.

According to Mr. Gujral, interested traders can buy the stock around Rs 140 with a strict stop loss of Rs 130.

If the stock market remains on positive track, the stock pricing becomes more attractive.

Shares of the company, on Friday (June 05), closed at Rs 140.45, up 4.60 points (3.39%), as against its last closure at Rs 135.85 (on June 04) on the Bombay Stock Exchange (BSE).

Current EPS and P/E of the stock stood at 2.48 & 56.63 respectively. The share price has seen a 52-week high of Rs 146.90 and a low of Rs 41.30 on BSE.

Mr. Gujral also said that the stock is going to hit another 52-week high in today’s session. So, buy it to make good profit.

On consolidated basis, Shree Renuka Sugars registered a marginal increase of 3.75% in profit after prior period adjustments to Rs 332 million for the three month period March 31, 2009 as against Rs 320 million during the same quarter of the corresponding year.

The company’s total income on consolidated basis fell by 21.09% to Rs 4,425 million during the period under review from Rs 5,608 million for the quarter ended March 31, 2008.

On standalone basis, the company declared a steep fall in its net profit for the quarter ended March 2009.

During the three month period, the company’s profit declined 20.72% to Rs 241 million from Rs 304 million during the same quarter last year.

Net sales declined 31.31% to Rs 3,241 million, while total income for the quarter fell 31.95% to Rs 3,265.00 million, when compared with the prior year period.

Founded in October 1995, Shree Renuka Sugars Ltd makes sugar, energy, ethanol and biofertilizers in an integrated facility in North Karnataka, India.

SRSL aims to become the most effective and market driven integrated processor of sugarcane throughout the world.

The main manufacturing plants of the company are located in Munoli, Athani, Havalgah & Gokak Sugars in Karnataka and Ratnaprabha Sugars in Maharashtra.

Moreover, it runs five leased facilities at Ajara, Arag & Balaghat in Maharashtra and at Aland & Raibag in Karnataka.