Rajesh Agarwal of Eastern Financiers told CNBC-TV18, "I do not see any hopes, not only for Shree Renuka Sugars, but the entire sugar pack in the next 2-3 quarters as such, because as we all know the companies in this sector are making losses quarter-on-quarter due to high interest cost, due to high cost of production that is around Rs 36/kg and the ex-mill price is around Rs 29-30/kg. So they are making a loss of around Rs 6/kg of production. Even Renuka has reported an Rs 120 crore loss this quarter."
"Going forward also this being an election year, I do not think there would be any meaningful help from the government's side because no government would come forward and do something with the sugarcane prices. As we have seen even today that in UP sugar prices were kept intact at Rs 280 SAP prices. Going forward also I do not think there are any hopes left in the sugar pack as such, so I would say stay put for the stock," he added.
"Any positive trigger, maybe a monetising of assets from Shree Renuka or some swaps from the government on interest free loans and all those things would be a positive driver and may push the stock to around Rs 25-26 levels. That is the highest I can foresee in the next 2-3 quarters."
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