Worst is over for sugar, buy on declines: Ashwani Gujral

Ashwani Gujral, Fund Manager, Ashwanigujral.com, talks to ET Now on various stocks.

What is your call on sugar stocks, the likes of Renuka as well as Balrampur Chini?

What I believe is that probably these stocks have bottomed out because next to bankruptcy I do not think much is left to imagination and whether or not policy turns favourable or not, most people are out of sugar and that is when stocks bottom out.

Renuka fell from about 55 straightaway down to 35 on some news flow and now it seems that from here you could easily get up to levels of 50 fairly easily because the stock had a straight drop and maybe some amount of positive news flow etc. could drive sugar stocks higher.

On all kinds of declines this is one small cap type space which you should buy into and the worst seems to be over on sugar. Maybe keep a 15% type of stop loss below and try to play it for the next 30% on sugar.