Wait and watch for sugar stocks: Avinash Gorakshekar

In a chat with ET Now, Avinash Gorakshekar, VP-Research, Edelweiss Financial Advisors, talks about sugar stocks.

Do you think sugar is avoid after last week’s fall?

Clearly sugar still we would be little cautious and would not like to advice investors to immediately get in. Probably fourth quarter numbers and then may be what is the outlook on prices and more importantly what is the kind of margin kind of guidance going forward because sugar as a commodity is typically a more volatile commodity then other agri commodities like tea or typically some other agri commodity. So sugar my sense is it is better to wait and watch rather than getting into it as of now. Probably if anybody does want to take a medium or longer term I think our choice would be more on the integrated players like Shree Renuka Sugar or may be a Balrampur Chini not a standalone sugar kind of a business.