SP Tulsian bullish on EID Parry, Shree Renuka

SP Tulsian, sptulsian.com is bullish on EID Parry and Shree Renuka Sugar.

Tulsian told CNBC-TV18, “Yesterday we have seen in Kerala Sugar getting sold at Rs 40 per KG and that has thrown a big concern to the daily and it is heard that today evening they have called for an emergency meeting where some policy measures will be initiated for the Sugar sector like may be exports can be banned. Yesterday or day before, we have seen the raw sugar getting imposed with 10% import duty but that is irrelevant because with raw price prevailing at 23 cents per pound I don’t think there is any feasibility of importing raw sugar.”
He further added, “This is not going to affect or keep the industry in any way affected. But the real concern is concern on the inventory. Now the kind of exports which we have seen and the inventory having sold by the mills on the court orders. Infact the closing stock in the books of the mills and the actual inventory is very much in variance and in fact it is feared that India may turn to be a net importer for the coming season because of the poor monsoon now seen in Maharashtra Karnataka. So there are lots of concerns now prevailing and the correction which we have seen in last couple of hours in the sugar stocks is largely because of that only that because that emergency meeting which I have referred to is called for. So all these things will drastically change the dynamics and the economics of the sugar sector though it will be seen positive over a longer term time frame. But any policy initiatives likely to get initiated by the government will be seen negative.”
“So considering that I’ll remain away and even if I make a fresh entry into the stock more focus will be on the south based sugar mill may be like Shakti Sugar, EID Parry or Shree Renuka Sugar."