What do you think of Shree renuka sugars?
Normally, I first develop and opinion about the sector.
In case of sugar, there are no worries of commodity cycles. It always sells. Unlike, metals, realty and capital goods. So, now we only have to worry about the stock price.
GOI has imposed unfavourable rules on the industry. Hence the Industry's profitability is hugely affected. But, the good news is this factor is amply reflected in the stock prices. So much so that now there is very little downside left. Lets see how much.
Lets pick the most reliable and stable stock: Balrampur Chini
CMP 40.60;
My Entry price: 22 (2004 Lows)
All time Low is: 5 (Max DD is Rs.17)
Expected Upside Target: 165 (2009 High)
So the math looks convincing.
Moreover, I believe that this sector will get the focus in the near future. Because every sector has its day. Else, the Industry will die out, which is not good for the nation. Last uptrend was seen in 2009 after a 3 year gap. Its high time now.
In conclusion, as soon as GOI changes policy, which will be sudden.
Balrampur Chini will madly shoot up to atleast Rs.100 if not Rs.165 and Rs.200 belt.
Bajaj Hind will reach 200 levels, CMP 15;
Therefore, my money is waiting for the levels to hit. Where I will allocate 5% of my cash into these two top sugar stocks.