If at all there is any offer from bajaj hindustan at 160 ... we can safely assume that the open offer price would be at least around 170-180 (at least)... so potentially there is a possible upside of 10-15% in the stock ... do you have any other news regarding the stake sale...
Balrampur Chini faces resistance at 149-150 ... once it crosses the level it can again start its upward journey ... If Balrampur Chini management is selling its stake due to political problems in UP then why is Bajaj hindustan buying it ... Moreover if Bajaj Hindustan is buying "a finished story" then why are you recommending the stock ...
The Balrampur chini owners may want to exit the sugar sector when the sector is at its peak ... there would be upside for the next 3-4 quarters or so but after that it would settle to normal levels ... the point that is confusing me as to why Bajaj Hindustan wants to buy the company now ... they could have bought it one year back at almost 1/5 the current price or they can wait for a year or so ...
I also feel that either the news is baseless or sonthing is surely cooking ...
Y RBI bought 200 tonnes gold now.They could hv bought one year back at 25%cheaper. Same logic u apply 4 bhl.Deals happen when buyer feel it is a good deal now than future.
You cant compare the two ... one is a perishable commodity and the other is precious metal ... gold can be stored for years and later sold but hte same is not the case with sugar... moreover RBI bought the commodity (gold) and Bajaj is buying the firm (not sugar but balrampur chini) ... so no point comparing the two... but nonetheless I hope the stake sale is finalized as soon as possible giving the shareholders good price for the shares ...
| NIFTY 
