Sukhjit Starch and Chemicals BSE: 524542

Here is again a golden oppurtunity in front of us. Before I ask you to accumulate, i would like to tell you why it is attractive buy

 Background about the company : Sukhjit starch and chemicals is one of the largestmanufacturer of starch and starch derivatives in India. Company has four units one each in Punjab,Andhhra Pradesh,West Bengal and Himachal. Company’s products are widely used in industrieslike Confectionery, Bakery ,Preserved food,Baby foods,Ice creams..etc. All of theseindustries are closely related with directconsumer spending. Company is a preferredsupplier of well known firms like WrigleyIndia Ltd., Dabur India Ltd., PerfettiIndia Ltd.,Godrej,  Parle, and  Cadbury.

Financial Background : They have made the EPS of Rs53 year ending Mar 2011. In Mar 2010 they made Rs19. This is 300% growth. But this qtr due to Monsoon and other inflation the results were bad (Profits down by 50%). But if you look at past results their Sep Qtr is always weak.

Rewarding Investors : This company has a trend of announcing huge dividents and Bonus regularly. Also promotors keep buying the shares from open market and increase their % of holdings. As of last Qtr they have 58.66% shares.

Future Growth -- This company is selected by famous research magazine as one of the company which can become future gaint in the coming years.

Range to buy : It is again very good oppurtunity to buy this company at lower price and have it in your portfolio. You may accumulate this share below Rs240.

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