Shree Renuka Sugar and Bajaj Hindustan look good in the sugar space: Gaurang Shah, Geojit BNP Paribas Financial Services

Gaurang Shah, chief manager, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about the sugar space.

What’s happening in the sugar space? Balrampur could be a candidate because of individual reasons but that aside, would you look at sugar companies at all?

We do look at sugar companies over here but the only stocks that we like in the entire pack is Shree Renuka Sugar and Bajaj Hindustan. The other stocks could possibly have a little bit of headwinds going forward from hereon given the fact that Shree Renuka Sugar - like we have heard in the past - is talking about a Brazilian acquisition in form of Equipav. If that goes quite neat and clean, then definitely the opportunities - as far as growth is concerned - Shree Renuka Sugar multiplies manifold.

Having said that, it is a commodity, which is driven more by the government as far as the pricing issue is concerned. So I would be very selective and choosy and amongst the sugar pack Bajaj Hindustan and Shree Renuka Sugar is what we like and may be a little bit of EID Parry.