Bullish on Renuka: Phani Shekhar, Angel Broking

Phani Shekhar, Fund Manager - PMS, Angel Broking, in a chat with ET Now talks about the sugar space.

What is your call on sugar as a sector right now and would you recommend buying into it?

Sugar of late - in the last 15 days or so - has shown signs of improving and globally also we are seeing that sugar prices have started hardening. So there is some kind of limited upside in most of these sugar companies. Although we do not believe that this is one of those structural upsides of 1.5-2 years which normally happens during the sugar cycle, this seems to be some sort of an intermittent upcycle in the larger sugar cycle and the larger sugar downcycle.

So we are looking at upsides, especially we are bullish on something like a Renuka where we will be looking at upsides anywhere between 15-20% in a relatively short period of time. The same logic applies to almost all sugar companies.