SP Tulsian of sptulsian.com told CNBC-TV18, "Those who are taking a call on the sugar stocks need to have conviction that the things are going to be very good for the next season as well, because I have been calculating the production of the next season that is the season which will start on October 1 and I was stunned to take up estimated production of less than 200,000 lakh tonne. So, situation is going to be seen quite precarious." "In the current situation, the drop in the production will be seen in the Maharashtra and Karnataka and if you see the status quo production in Andhra Pradesh and Tamil Nadu, in this scenario if you really want to take a call then if you take a call today practically today about 25 stocks are hitting upper circuit. You have seen Dalmia Bharat Sugar just hitting 20 percent circuit. Since morning we have been seeing Oudh Sugar , Upper Ganges , Ugar Sugar and so many other stocks, Dhampur Sugar - all hitting upper circuit and if you see the theme that has been, the UP based sugar mills which have been holding the inventory where the unrealised gain is anywhere between Rs 100-400 crore depends on the quantity held by them, the results of Q1 that is June quarter and September quarter are going to be bumper because of the unrealised gain, which will be get booked in this two quarters," he said. "So, keep a faith for these two quarters profits to come from the inventory held by these mills, especially, the UP based sugar mill and then thereafter the more positive outlook on the sugar season which will start in the month of October. So, if you go by this thesis or if you take a call on this basis then probably at least in today’s market you only get two stocks - Balrampur Chini and Triveni Engineering." "Both the stocks are up by about 8-9 percent, but at least both are quality stocks where the sugars are held to the extent of about 60 lakh bag by Balrampur and 40 lakh bag by Triveni Engineering. So at least you have comfort that production is going to be maintained for next season and margins are going to be seen quite good even for the next season as well." "In the current situation, I won’t be jumping for, because there is a lot of left out feeling among the people and that’s why they are running for any kind of sugar stocks without taking a fundamental call on those stocks, but in the current situation because other stocks have already frozen on the upper circuit, I will advise to buy into these two stocks that is Balrampur Chini and Triveni Engineering ."
Monday, 27 June 2016
Buy Balrampur Chini, Triveni Engineering -:- Equity Research
SP Tulsian of sptulsian.com told CNBC-TV18, "Those who are taking a call on the sugar stocks need to have conviction that the things are going to be very good for the next season as well, because I have been calculating the production of the next season that is the season which will start on October 1 and I was stunned to take up estimated production of less than 200,000 lakh tonne. So, situation is going to be seen quite precarious." "In the current situation, the drop in the production will be seen in the Maharashtra and Karnataka and if you see the status quo production in Andhra Pradesh and Tamil Nadu, in this scenario if you really want to take a call then if you take a call today practically today about 25 stocks are hitting upper circuit. You have seen Dalmia Bharat Sugar just hitting 20 percent circuit. Since morning we have been seeing Oudh Sugar , Upper Ganges , Ugar Sugar and so many other stocks, Dhampur Sugar - all hitting upper circuit and if you see the theme that has been, the UP based sugar mills which have been holding the inventory where the unrealised gain is anywhere between Rs 100-400 crore depends on the quantity held by them, the results of Q1 that is June quarter and September quarter are going to be bumper because of the unrealised gain, which will be get booked in this two quarters," he said. "So, keep a faith for these two quarters profits to come from the inventory held by these mills, especially, the UP based sugar mill and then thereafter the more positive outlook on the sugar season which will start in the month of October. So, if you go by this thesis or if you take a call on this basis then probably at least in today’s market you only get two stocks - Balrampur Chini and Triveni Engineering." "Both the stocks are up by about 8-9 percent, but at least both are quality stocks where the sugars are held to the extent of about 60 lakh bag by Balrampur and 40 lakh bag by Triveni Engineering. So at least you have comfort that production is going to be maintained for next season and margins are going to be seen quite good even for the next season as well." "In the current situation, I won’t be jumping for, because there is a lot of left out feeling among the people and that’s why they are running for any kind of sugar stocks without taking a fundamental call on those stocks, but in the current situation because other stocks have already frozen on the upper circuit, I will advise to buy into these two stocks that is Balrampur Chini and Triveni Engineering ."
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