Multibagger stock for 2022: IIFL Securities gives buy tag to this sugar stock

Multibagger stock for 2022: Despite global economy feeling the head of Covid-19, Indian stock market manged to deliver stellar return in 2021. In fact, a good number of shares entered the list of multibagger stocks in 2021. After such huge number stocks generating alpha return in 2021, positional investors are busy finding out multibagger stocks for 2021. To make this job easy for such investors, Anuj Gupta of IIFL Securities has suggested Vishwaraj Sugar Industries stocks to buy as he believes that the stock may double shareholders money in 2022. He has given buy tag to this sugar stock predicting ₹50 target by the end of 2022. Vishwaraj Sugar Industries share price today is ₹20.45 apiece on NSE.

Speaking on the fundamentals supporting this penny stock to emerge as multibagger penny stock in 2022; Anuj Gupta, Vice President at IIFL Securities said, "As India is moving towards bio fuel with 19 per cent ethanol blending policy, sugar companies are expected to benefit most. In first 9 months of FY22, this company has posted 395.68 per cent rise in net profit compared to 4.17 per cent in corresponding period in previous fiscal. It produces superior grade of ethanol, which can use in bio-fuel blending process."

"The stock has been under selloff heat after ascending to its life-time high of ₹45.80 apiece levels in October 2021. The stock has corrected to the tune of near 55 per cent from its life-time high. On technical chart pattern, the stock looks strong at these levels and may not go down further. As fundamentals of the company looks strong and ethanol blending policy of the government is expected to boost company's order book throughout the year, in fact for more longer period, we are expecting sharp rebound in this sugar stock in upcoming sessions."

"As rising crude oil prices are big concern for Indian government. Ethanol blending policy is expected to further pick up leading to more profitable condition for sugar stocks. So, we are highly bullish on this sugar stock as it is available at highly discounted price as well and Vishwaraj Sugar Industries shares as one of the probable multibagger penny stocks in 2022."

Speaking on the possible targets for the sugar stock, Anuj Gupta of IIFL Securities said, "One can buy this penny stock at current levels for near term target of ₹30. Once the stock gives breakout at ₹30 on closing basis, it may go up to ₹38 to ₹42 apiece levels in mid-term whereas in long-term, we are expecting this stock to become multibagger penny stock in 2022 and hit ₹50 levels by the end of 2022."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.