Sugar Stocks

#1
Any idea what is likely to happen to sugar eg Bajaj Hindutan and Balrampur Chini in the short term. Even with lifting the import restrictions they are still moving down regularly.
Any possible change in direction anticipated?
Nayadalal
 
#2
Hi Nayadalal,

Sugar stocks are most probably going to bottom-out soon. Most of the sugar stocks are trading around their 52-week lows. Based on their poor results in Jul-Sep qtr results, when production falls due to rainy season, they have corrected to these lows. But, the next two qtrs are good for sugar production. Therefore, in most likelihood, their stock prices are going to bounce back from these lows.

I have already recommended Balrampur Chini for long-term. In the short-term, Sakthi Sugar is looking good for buying at around 80-82 levels...
 
#4
Triveni engineering is probably a good bet in this sector as its engineering divison is doing extremely well. Triveni engineering is also looking to demerge their business, which will unlock significant value but the demerger may take some more months.
 
#5
Looks like some benefits are going to come for sugar Industry in the coming budget, there is lot of hue and cry by the sugar lobby which shelves out a lot of money in the elections

There has been a record sugar production and hence prices may not rise for the next three quarters, International prices are also rock bottom, on the other hand cane prices are on the upswing, hence expect some tax concessions to the industry, anyway sugar stocks are beaten down so badly, there is not much downward left
 
#7
It seems that the Sugar industry is still not bottomed out.
New investors wait for Sugar stocks to consolidate before entering. In case you have decided to enter , then buy in bits and peices and with caution. Follow the saying " Don't catch the falling knife".

I like Bajaj Hindustan the best out of all Sugar stocks. Waiting for the levels of 150 prior to entering.
 
#9
Hmm ... you bought it recently - any reasons?
Frankly I would avoid all sugar stocks till the end of this fiscal.

If I had patience to wait for months - I could sit.
Otherwise - I would move out and search for greener pastures - like ummm engg stocks like Fedders Loyd or FMGoetze.

Anyway, thats just my viewpoint, and am not professional trader, broker or analyst.
 
#10
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