Like Jayshree Tea, VST Tillers may test Rs 2000: Baliga

Ambareesh Baliga, Independent Market Expert told CNBC-TV18, "In tea space, I like two or three stocks. I like Jayshree Tea and Goodricke Group which is actually into premium quality tea. People have missed out to a large extent if they have not got in into Jayshree Tea but this stock can go to levels of about Rs 110-115. At those levels it will get fully priced." "On sugar stocks, one should stick to quality and sticking to stocks like Balrampur Chini, Bajaj Hindusthan or KCP Sugar. But people need to be a bit careful of stocks like Shree Renuka. Because of the price going up they may start showing profits but by the time they get to repair the balance sheet it will be the next down cycle. So, doesn't really make sense at such stocks at this moment," he said."Going with the farm ancillary story my pick is VST Tillers Tractors. With an earnings per share (EPS) of about 90 for the period of FY17 and absolutely clean balance sheet with no rules on the books. Operating at about 35-36 percent capacity. So, for increasing capacity and working at 90-100 percent capacity over the next couple of years there is going to be no capex. So, from these levels of about Rs 1,520-1,525 I expect the stock to possibly go to levels of about Rs 2,000-2,200."