Enter Shree Renuka around Rs 21- 22: SP Tulsian

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Enter Shree Renuka around Rs 21- 22: SP Tulsian

Enter Shree Renuka around Rs 21- 22, says SP Tulsian, sptulsian.com.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Shree Renuka See messages about Shree Renuka

Enter Shree Renuka around Rs 21- 22, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Sugar stocks, next cycle which will start in October 2012 is in my view likely to be very good because we are not going to see the production of it. It is too early to take a call because it can only be seen as a futile attempt but considering the cane arrears which are likely to get babbled up in the UP especially and especially the amount which is being talked of anywhere between Rs 6-8000 crore definitely there will be disappointment amongst the farmer, they won't go for the cultivation of sugarcane for the next season, the movement they harvest in this crushing season they will go for the other crop. That can lead to the lower production of about may be 20 million tone."

He further added, "I am just making a guess for next season that is 2012-13 which will start in October 2012 and that is likely to be a very good period for the sugar industry. So I don't know whether any investor can take such a long term call but under the given circumstances still I'll advice that it is not necessary that you should look for the UP based sugar mill. One should avoid because you have all the stocks available largely from the UP space. But one can look for the non UP space may be like KCP Sugar , Shree Renuka, Ugar Sugar or Shakti Sugar and I am not saying that one can always take the exposures in the same ratio but Renuka looks good provided somebody has a view of at least about 18 months from here on. So in the given scenario one can wait for 3-4 months. I don't think stocks are going to run up like that. If somebody can catch out Shree Renuka can able to get a turnover of Rs 21-22 which in my view may be unlike in the next 3 months or so. So that is a better entry point with a long term horizon."