Sugar stocks did well on Monday and the TV channels are abuzz now with smiling-faced analysts recommending sugar stocks, after sugar stocks have run up quite a bit in last 1.5 months. I had recommended sugar stocks at the very beginning of this up cycle, when no one was recommending sugar; in fact, some were asking to avoid till end of the year. I actually made some good profits in Renuka and moved out (bought at 63 in July and sold at 85 in Sep).
On July 22nd, I had written to the group:
"This year a mild sugar shortage may be seen globally and after inflation due to oil price decontrol cools off, I think the Goverment of India will allow to export sugar, if not they deregulate the sugar prices. So I see an investment opportunity in premeire sugar stocks, but in small quantities.
Sakhti Sugar is a good bet; I see it climb back to 70 (21%) in next 3 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. I will rank the sugar stocks as follows:
Bajaj Hindustan, Renuka, Balrampur Chini, Sakhti Sugars"
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