SP Tulsian of sptulsian.com told CNBC-TV18, "Opto Circuits and Shree Renuka Sugars are victims of the forex loan, corporate governance. In case of Shree Renuka Sugars, the market is worried more because of the incapability of the company to monetise their assets. On the other hand, they are talking of raising further money. If one really goes by their Brazilian and Indian operations, both are resulting into a huge working capital pressure."
He further added, "One, in our country we will be having a closing stock of 8-9 million tonne of sugar and that is not going to get liquidated so quickly. Two, on the Brazilian operations the company is finding it very difficult. If one sees the loan of about Rs 6,000-6,500 crore in the books of the company that is seen quite high. Yes, a part of that is the forex component also. Renuka Sugar is victim of the fundamentals as well as the financial leveraging."
"In case of Opto Circuits, we should really write-off this stock completely because one does not have comfort either on the working or on the corporate governance or even the financials of the company, in spite of whatever statements which may have been issued by the management," SP Tulsian said.
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