I will repeat my statement on sugar sector less than 2 months back, which actually has started to be proven true, at least at present:
On July 22nd, I had written to the group: "This year a mild sugar shortage may be seen globally and after the temporary inflation (resulting from partial decontrol of oil price) cools off, I think the Government of India will allow to export sugar, even if they will not deregulate the sugar prices. So I see an investment opportunity in premiere sugar stocks, but in small quantities.
Sakhti Sugar is a good bet; I see it climb back to 70 (21%) in next 3-4 months. But try to buy on dips. I am sure this will dip to 56-57 levels in the coming week. But Renuka is a better integrated sugar player than Sakhti Sugars. Renuka has the potential of climbing from 63-64 levels to 80 in the next 3-4 months (it touched 77 on Sep 9th).
I will rank the sugar stocks as follows: Bajaj Hindustan, Renuka, Balrampur Chini, Sakhti Sugars."
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