Bullish on sugar counters: Amit Goel

In a chat with ET Now, Amit Goel, Director, PACE Stock Broking Services, talked about sugar stocks.

A quick word from you on some of the sugar counters?

We are bullish on sugar counters. We believe that while sugar prices are of their recent highs, they are down by something like 20% from their recent October highs. But I think I do not see any further move downward as far as sugar prices and the Indian companies are concerned. We have a good sugarcane crop coming up so at least sourcing sugarcane is not going to be a problem for Indian sugar companies and the international prices being high and government policy is gradually moving towards sugar decontrol, gradually moving towards blending of ethanol. So I think gradually we are moving towards an era where sugar prices and sugar companies can be expected to do well and with international sugar prices holding up and with Indian crop looking good I think at least for the next few quarters sugar companies are looking very good and one can reasonably expect an investment return of around 15% to 25% over the next 2 to 3 months.