Buy Shree Renuka Sugars: Tulsian

Investment Advisor, SP Tulsian is of the view that Shree Renuka Sugars is virtually rolling at its lowest level. So it is a good buy.

Tulsian told CNBC-TV18, "I am very positive on the sugar sector because the production this year will be very low though the expectation is of about 21 milion but probably the production figures will be close to 19-20 million. So that will definitely see the sugar prices going up from April 2009 because by the time crushing season ends in UP and Maharashtra and by that time the general elections in the country are likely to get over. So post that I won’t be surprised, if I see a rise of may be Rs 3-4/kg in the sugar prices, which will be very good and that will be on a sustainable basis for next 1-2 years because production thereafter will still be lower than 20 million tonne all this."

He further added, "Shree Renuka Sugars being one of the largest player in the country and one of the largest player in Ethanol and sugar also, the share is virtually rolling at its lowest. So it is a good buy. My advice is that remain invested and even this qualifies as a buy at the current levels."

Disclosure: The analyst has holdings in Shree Renuka, Hindalco, Ranbaxy.

Source: Moneycontrol