Buy EID Parry, Shree Renuka on decline: SP Tulsian

Buy EID Parry and Shree Renuka on decline, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I wont be advising to take a short view now on all the sugar stocks because as you have rightly said we have seen a huge run up and I will really be cautious on the UP based sugar mills because if you see last week two events have happened, firstly the global prices of white sugar has moved past USD 630 which has been very positive for exporting companies from India. Second is the selling by the UP based sugar mills at Rs 31 per Kg ex-mill.”
He further added, “The kind of run which we have seen on the UP based sugar mill, I am quite certain that the profit booking is likely to come which can make all the UP based sugar mills stock to correct by about 5-8% in the next one week or so, whether you talk of Bajaj Hindusthan, Balrampur Chini, Triveni or may be Simbhaoli Sugar which is frozen at 20% circuit today because of arbitration claim having received by the company. Now I am keeping my positive stance on three sugar mills one is EID Parry, second is Shree Renuka and third is Sakthi Sugar because EID Parry and Sakthi Sugar they have their presence in Tamil Nadu where the second crushing season has just started last week and in case of Renuka the crushing at Brazil is gradually ramping up and I am expecting the full capacity to happen very soon.”
“One can keep a positive stance that too at a lower level, I don’t think that one should really jump into acquire even these three stocks on which I am having the positive stance immediately in the next week. So, one can look for the mild correction of may be 2-5% in these stocks and then can take a view with a view of 1-2 months.”