Shree Renuka Sugars can correct to Rs 32, says Rajesh Agarwal, Head of Research- Eastern Financiers.
Agarwal told CNBC-TV18, "Operationally nothing was there in Shree Renuka Sugars. We have seen the company reporting profit of around Rs 344 crore but that was against a forex gain of more than Rs 430 crore. Operationally if you see this company is still into losses and going forward in the next 2-3 quarter, we don't believe that something extraordinary is going to happen."
He further added, "There were talks of decontrol which is also not happening and the company has been talking of demonetizing their wind power business from the last 2-3 quarters, Cogen facilities but that has also not happened and even in this quarter they have given indication they are going to look for some buyers. But we believe that, that again is going to take enough time. In the short term we do not find any trigger to be in the stock rather we believe that it can correct to levels of Rs 32."
