Buy sugar stocks on dips: Networth Stock Broking

Prakash Diwan, Head, Institutional Business, Networth Stock Broking in an interview with ET Now talks about sugar stocks.

Your thought on the entire sugar space and do you think that the prices may have bottomed out and would you take a re-look at the sector and look at any exposure or any buying into the stocks at this point in time?

It is a bit early to say that the prices have bottomed out. We have seen definitely some run-up in especially the frontline sugar stocks, which were beaten down much more severely than the second-rung players but I would still hold the stand wherein we buy on dips being the more prudent strategy and with the advent of the monsoon being timely, I am sure it is time for them to work out their math in terms of the kind of harvest and the kind of output, which is likely in the next year, so I would still recommend the holding on and buying only on the dips as and when you get the opportunity.