Avadh Sugar Energy heading towards 8000+ levels (Long Term)As the prices of commodities are soaring high due to increasing demand and inflation, Sugar & Ethanol prices will rise as well leading to improved operating profit margins.
This sector is capital intensive, only the existing players will be immensely benefitted due to ethanol blending.
Price to BV & PE is low compared to its peers.
Changes in govt. policies can impact this sector heavily, one should keep in mind. Still tailwind is there due to ethanol blending and it will be there up to 2030 at least.
Technically price is forming a cup with handle pattern with a technical target of 1300, which can be achieved in medium term.
Targets are highlighted according to your investment horizon.
As per wave theory, wave 2 is complete now after forming a complex WXY double correction pattern. Now we are at the initiation of a larger degree wave 3, which can lead towards 8200 level in 2.5 to 3 years creating a ROI of more than 1100% from CMP.
Invest only if you have strong conviction in this sector and this company and do your own due diligence before taking any action.
Peace !!
