Buy Shree Renuka Sugars: Sanjay Vaid

Buy Shree Renuka Sugars, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "I am recommending a buy on Shree Renuka Sugars. The stock has seen a very decent rollover in the August series of 92% plus the stock has moved above the 20 day moving average of Rs 72. Fundamentally the stock will do well, we have that the international prices of sugar have held firm for last 2 months which will help the company because it has huge refining capacity in which it can process raw sugar." He further added, "The Brazilian subsidiary of the company would also benefit from the high international sugar prices apart from this on the domestic front we would be moving into the festival season going forward and we have seen festival season to last for almost a quarter and during these period the domestic prices of sugar are held firm. Given all these fundamental reasons also we feel that stock can easily test and move towards Rs 76 levels and then try to reach 200 DMA of Rs 78 therefore I recommend a buy on this stock with a target price of Rs 76." Click HERE to know the rules and follow the score card