Sugar stocks look attractive from medium term perspective: Unicon Investment
ET Now talks to Shrikant Shetty, Head, Equity Advisory, Unicon Investment Solutions on sugar stock.
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| ET Now talks to Shrikant Shetty, Head, Equity Advisory, Unicon Investment Solutions on sugar stock.
Lot of volatile moves have been seen in sugar pack and the second rung sugar stocks have actually been showcasing some amount of strength. You have got a Dharani Sugar & many other stocks from the second rung have been doing well but the larger ones like Balrampur, Shree Renuka, Triveni, what is your call on that?
Most of them are corrected substantially. So they are seeing some amount of pullback, even in the cash segment which the stocks like Dhampur are reasonably attractive. So look at on valuation perspective, they are trading at reasonable numbers and the fact that overall sugar prices are expected to stay around 30-35 to 40 levels over a period.
From medium term perspective they look reasonably attractive, so that is probably a reason why we are seeing the pullback. Though from a short term perspective sugar prices have corrected internationally and there is some recovery happening there, so that is probably the reason.
Lot of volatile moves have been seen in sugar pack and the second rung sugar stocks have actually been showcasing some amount of strength. You have got a Dharani Sugar & many other stocks from the second rung have been doing well but the larger ones like Balrampur, Shree Renuka, Triveni, what is your call on that?
Most of them are corrected substantially. So they are seeing some amount of pullback, even in the cash segment which the stocks like Dhampur are reasonably attractive. So look at on valuation perspective, they are trading at reasonable numbers and the fact that overall sugar prices are expected to stay around 30-35 to 40 levels over a period.
From medium term perspective they look reasonably attractive, so that is probably a reason why we are seeing the pullback. Though from a short term perspective sugar prices have corrected internationally and there is some recovery happening there, so that is probably the reason.
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