Jefferies upgrades Balrampur Chini Mills to "buy" from "hold" and raises its target price to 75 rupees from 50 rupees, calling it the "best stock" to play rising sugar prices in India.
Jefferies cites risk that sugar production next season could be lower than initial estimates of 25 million and closer to, or below, 23 million.
Brokerage also says the weak rupee is supportive given it still prices domestic production lower than import prices.
Jefferies estimates Balrampur's fiscal 2013 EPS increases by 2.5 rupees for every 1 rupee increase in sugar price.
Balrampur last up 5.6 percent at 63.75 rupees.