Shree Renuka, Sakthi Sugars may see 10-12% upside: Tulsian

Tulsian told CNBC-TV18, “If one sees Shree Renuka will be starting their crushing season very soon, one of the units has already must have started the production and if you see the rupee weakening and the firming up of the white sugar prices at about USD 600 is also making the realizations better here and because of the off season now the inventory are also seeing the better realizations especially in the Western and Southern part of the country. So maybe I will have my short-term positive on Renuka as well as on Sakthi Sugars, but may not be on the UP-based sugar mills.”

He further added, “UP-based sugar mills will not be able to export even a single grain of the sugar, but yes, that will be quite positive for the companies, which are costal based especially from Tamil Nadu and Maharashtra and if you need to choose two or three companies in that space Renuka and Sakthi Sugars are looking quite well placed and they have been very aggressive in the exports and that’s a reason I am maintaining my positive stance on both these stocks and still see upside from hereon of maybe about 10-12%.”