Stay away from sugar stocks: Seshadri Bharathan, KSEMA Fincon Ltd

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about the sugar space.

What is your take on the sugar space? Do you think there is any sort of respite coming in for the counters like Shree Renuka considering and Balrampur Chini?

My sense is that if you look at the sugar sector as a space most of the positives are out and we are hearing news of a bumper crop in Brazil. We don’t see because most of the sugar companies cost of production is around Rs 30 per kg and the selling price is around Rs 28-29 per kg.

So sugar companies technically are making a loss of Rs 1-2 per kg that they are selling. So my sense is that investor should keep away from sugar stocks because the good story is over in sugar stocks and they should keep away from sugar stocks.