Modi 3.0 stock pick: Experts see over 50% upside in this sugar stock in long term. Here's why

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Modi 3.0 stock pick: After the formation of Modi Cabinet 2024, market experts are busy finding value picks on Dalal Street as most of the business and economy-related portfolios have been given to the same ministers who held the ministry in Modi 2.0. In this line, stock market experts predict that the Modi 2.0 policies will continue and catch momentum. They said that Modi government is committed to increase ethanol blending in petrol fuel to around 20 percent which is at around 14 percent only.

So, sugar companies in the business of ethanol blending are expected to reap the benefits of thie central government vision. In this line, they advised long term investors to look at Davangere Sugar Company shares as they believe that the stock is expected to witness spurt in volume after the recent 1:5 stock split. They said that the stock may give over 50 percent return in the long term, indicating a potentially lucrative investment opportunity.Speaking on the reason for being bullish on Davangere Sugar Company shares, Avinash Gorakshkar, a seasoned Head of Research at Profitmart Securities, shared his insights.

He emphasized, "Davangere Sugar Company Ltd is in the business of ethanol blending. So, they are expected to reap the dual business of ethanol blending and sugar. As the Modi government is committed to enhancing ethanol use in petrol from the existing 14 percent to around 18 to 20 percent, sugar majors including Davangere Sugar Company may benefit from this Modi government's vision.