EID Parry, Triveni, Dalmia Sugar look good: SP Tulsian

SP Tulsian, sptulsian.com is overall positive on sugar sector for next 3-6 months. In sugar space, EID Parry, Triveni, Dalmia Sugar are looking good.

Tulsian told CNBC-TV18, “Overall I am maintaining my positive view on the sugar stocks. If I focus on the UP-based sugar mills, many of the sugar companies are still carrying huge inventory. I just want to single out Bajaj Hindustan. If you take the case of Bajaj Hindusthan and Balrampur Chini, in comparison to both these companies Balrampur Chini is having an inventory of close to about Rs 16-1700 crore as on June 30, while the inventory with Bajaj Hindustan is not more than Rs 600-700 crore. Post July 1 2012 we have seen increase in the sugar realisation by about Rs 6-7 per Kg which will be seen reflected into the better working of all these companies for September quarter as well as December quarter number one.”
He further added, “The production going forward for the next season which will start on October 2012, UP is going to record an increase of about 15-20% while Maharashtra and Karnataka will lag behind. Overall for the off season when the crushing is off these companies will be making good inventory gain and thereafter they will be having the advantage of the better realisation and higher production for UP-based sugar mills, more specially the eastern part of UP because there we have seen a good monsoon.
Coming specifically on Shree Renuka, the disappointment was more on non-presentation of the consolidated numbers by the company because they did not present their Brazilian operations, but I am quite hopeful and optimistic on the Brazilian number because crushing season got delayed. Overall in nutshell the view on the sugar sectors are all positive. I will choose to remain with the stocks like Balrampur Chini, Renuka Sugar, EID Parry, Sakthi Sugar, Bannari Aman, these kind of stocks and even if you take the smaller ones like Triveni, Dalmia Bharat Sugar, KCP Sugar, Ponny Sugar, Dharni Sugar, they are all looking quite good, so, overall positive stance on the sugar sector for next 3-6 months time horizon.”