Bajaj Hindusthan Sugar Ltd. (BHSL) is a significant player in India’s sugar and ethanol industry. It belongs to the renowned Bajaj Group led by Kushagra Bajaj. It also comes under top sugar companies in India. As the sector has started to pick up momentum, the question arises what can be Bajaj Hindusthan Sugars Share price target for 2023, 2024, 2025 and up to 2030? We will also check if it’s the right time to enter in this stock.
As of June 20, 83% of the stocks in the Agriculture Sector (Including sugar) are trading above SMA 20. 72% of stocks are above SMA 50 and 82% above SMA100. The RSI of 86% of stocks is above 50. This increasing RSI indicated signs of strength in a particular industry.
Now that we know that the overall sector is strong, let us analyse in detail to predict Bajaj Hindusthan Sugar’s share price target for coming years.
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About BHSL - Company details
BHSL has a strong presence in Uttar Pradesh (UP), a northern state in India known for its agricultural prowess. With a network of fourteen sugar plants strategically located in UP, BHSL plays a significant role in supporting the region’s sugar production and contributing to its economic growth.
The share price of Bajaj Hindustan Sugar Ltd is Rs 16.25. In the last one year, the company’s profit grew by 32.31%.
Bajaj Hindusthan Sugar Share price target 2023
Upon analyzing the above chart, we observe the development of a triangle pattern that has been evolving since November 2020. Bajaj Hindusthan Sugar’s share price target for 2023 can be Rs 18.5, representing the next resistance level the stock might face. Furthermore, our secondary target for 2023 lies within the range of Rs 22.5 to 24.15.
For long term projections, it is essential to study a company’s fundamentals along with its technicals. Let’s talk about the company’s equity and shareholder funds.
Bajaj Hindusthan Sugar’s equity share capital has remained relatively stable over the years, which means there haven’t been significant changes in the number of shares issued. A stable Equity share capital is vital as it shows investors are still interested in the company.
Bajaj Hindusthan Sugar’s reserves and surplus (profits accumulated over time) have shown a positive trend, increasing from MAR 19 to MAR 22. However, there was a slight decrease in MAR 23 compared to the previous year, possibly due to various factors such as dividends or reinvestment.
On March 23, BHSL declared that it had acquired staked in Phenil Sugars Ltd (PSL) and Bajaj Power Ventures Private Ltd (BPVPL) worth Rs 800 crore. Using surplus profits for reinvestment is always a good step for a company to fortify its future. (Source – cnbctv18 )
Bajaj Hindusthan Sugar Share price target 2024
Reducing long-term borrowing is essential for a company’s finance. With reduced borrowings, a company can reduce its interest payments. This leads to lower interest expenses, positively impacting the company’s profitability and cash flow.
BHSL has managed to reduce its long-term borrowings over the years. This will help Bajaj increase its creditworthiness. Reducing debt will also help the company expand its spending on R&D and new investments. Lowering debt is a positive sign for BHSL which will help them perform strongly in future.
Keeping the above points in mind, we can expect Bajaj Hindusthan Sugar’s Share price target for 2024 to be in the range of Rs. 25.95 to 30.75.
Bajaj Hindusthan Sugar Share price target upto 2030
| Year | Target 1 | Target 2 |
|---|---|---|
| 2023 | 18.50 | 24.15 |
| 2024 | 25.95 | 30.75 |
| 2025 | 32.00 | 49.70 |
| 2026 | 60.20 | 72.15 |
| 2027 | 99.20 | 121.00 |
| 2028 | 170.70 | 205.00 |
| 2029 | 284.00 | 418.00 |
| 2030 | 480.00 | 530.00 |
When we analyze the company’s future performance, we must consider factors such as industry trends, market demand, government policies, and competition. I discussed these points in an earlier post where we discussed Ugar Sugar’s Share price target. Check it out to learn more about the Sugar industry market trend in India.
How can Bajaj Hindusthan Sugar Improve in Future?
In order to improve its fundamentals, BAJAJHIND can do the following
- Managing trade payables to optimize cash flow and maintain good relationships with suppliers.
- Monitoring and managing short-term borrowings effectively to reduce reliance on debt.
- Continuing efforts to reduce long-term borrowings and maintaining a healthy debt-to-equity ratio.
- Assessing and addressing the impact of fluctuating commodity prices on the company’s profitability.
- Focusing on operational efficiency and cost management to enhance profitability.
Is it right time to Buy Bajaj Hindusthan Sugar
Despite the company’s efforts to improve its fundamental aspects, it continues to experience losses. Promoters have pledged 100% of their holdings, which makes Bajaj Hindustan a very risky stock. In long term, stocks with such high promoter pledging companies make me question the company’s fundamentals.
It is recommended to avoid making any aggressive positions in Bajaj Hindusthan Sugars until the company becomes profitable.
Conclusion
Analysts are bullish on the sugar industry for the coming decade. However, it will be interesting to know how BAJAJHIN competes with industry leaders like Renuka Sugar and E.I.D Parry.
By studying its balance sheet, we predicted Bajaj Hindusthan Sugar’s share price target. Overall, the company has shown mixed performance in recent years. The company has reduced long-term borrowings and increased reserves and surplus, indicating improved financial stability. However, trade payables have increased, which may affect cash flow and liquidity. Finally, decreasing promoters’ interest can make it very volatile in the coming time.
It is suggested that you consult a registered financial advisor before making any investment decisions.
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