Bullish on sugar space, pick Renuka Sugar: Pankaj Pandey, ICICI Direct

ET Now spoke to Pankaj Pandey, Head of Research, ICICI Direct, on his views on the sugar space.

What would you do with the sugar pack now? At current levels, would you buy into them?

If you look at the kind of upsurge what we have seen in global sugar prices and the benefit that can accrue to some of the companies like Renuka Sugar because of overseas acquisition, which they did, one can still build a case in terms of building long-term upside in sugar stocks.

Besides sugar, we would be positive on tea as well because what we have seen is that the production figures for the past few months have been coming down and that is also providing fillip to the prices and tea prices, which were coding somewhere about Rs 123-Rs 124 odd levels have moved about Rs 138 odd levels in north wherein the production has been impacted the most. North contributes about 75% to the tea products, in that sense softer commodities like tea and sugar are looking good in terms of prices improving globally and we would expect players to benefit from this upsurge and we would be positive on both the segments.