Exit Shree Renuka Sugars: Prashastha Seth

Exit Shree Renuka Sugars, says Prashastha Seth, Senior VP, IIFL Private Wealth.

Seth told CNBC-TV18, "I think you have to take it more of an trading call rather than an investment call something like sugar it moves in a cycle and if the agricultural commodity cycle is favourable I think the stock will do well and reverse will be the case the stock is not going to do well."

He further added, "The problem with some of these companies is that their balance sheet is extremely leveraged, so to that extent high interest rate environment is possibly not good for these companies. So my sense would be to probably sell Shree Renuka and switch to better stocks because there are lot of stock available at good valuations. I think it is more of a trading bet rather than an investment bet at this point in time."