Exit Shree Renuka Sugars at Rs 21: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Shree Renuka Sugars is sitting on a huge debt. It has not taken any step inspite of the management saying from last 12-15 months that it is looking to monetise part of their Brazilian assets and part of the cogen assets. Now the crushing season will start in middle of November and it has a strong presence in Karnataka. Karnataka government has agreed on the cane pricing along with sugar price. So that will be seen mildly positive, I will advise to look for a level of about Rs 21 on the stock because I am not holding a positive view on the sugar industry."

"For next 12-18 months, we are going to see stagnation because whenever the news flow comes in like release of ethanol tender by oil marketing companies or may be start of crushing season, at that time investors become little greedy. They keep remaining invested into the stock while that should be used as an exit opportunity. So investor should look for a level of Rs 21 where he/she should exit in next one and half months," Tulsian said.