Tuesday, March 6, 2012

SUGAR SECTOR STOCKS

Today , after the UP Poll outcome all stocks from sugar sector reacted sharply down.I feels this is only an over reaction.Long term investors should take it  as an opportunity to buy if there is any further correction.Even without de-control ,the risk reward ratio on a two year time frame justifying an investment in sugar stocks at current level. Moreover I don't think anything negative has happened to this sector due to the victory of SP in UP and really it may be positive on many grounds.  Since the market volatility is high due to the upcoming important events like RBI policy ,Budget ..etc , one may adopt a strategy to buy it in different lots.

28 comments :

  1. Hi Valuepick,

    Do you mind doing a post on the business of the sugar industry ? Like how they earn their money, what impacts them +ve/-vely , what economies of scale they enjoy and things like that..

    ReplyDelete
  2. Dear Raja

    I don't think Sugar is a complicated industry to understand,where mills are generally divided into two - Integrated and others.Integrated sugar mills are mainly in different products viz sugar,power,Molasses,Alcohol,Ethanol,organic manure ..etc..Details on the policy of govt and their working is easily available on some basic home work.

    ReplyDelete
  3. Hello Sir,

    I want to invest in finolex cable, shanthi gears and GMR infra. Please let me know your view on the above mentioned stocks.

    Varun

    ReplyDelete
    Replies
    1. Positive on Finolex cable and Shanthi Gear for long term.Not tracking GMR Infra

      Delete
  4. Hi Valuepick Sir,

    Can I buy Superhouse Ltd at CMP? Why is it lagging even when its earnings is good?

    regards,

    Prakash

    ReplyDelete
  5. Dear Sir,

    I would like to know your valuable openions on V-GUARD INDUSTRIES & MUNJAL SHOWA.....

    Both seems good bets from small cap space for medium to long term .....

    ReplyDelete
  6. Dear Sir,
    Can you please shed some light on Surana Corporation, (i know this is not releveant to this post, but pls do the needfull)

    ReplyDelete
    Replies
    1. Dear Raghav

      I think it is a risky bet .Price may or may not increase but I am bit Skeptical on surana group as a whole.

      Delete
  7. sir thanks ur posting.

    now this is the time to know ur views for medicamen bio, gei ind, srinivasa hatcheries at the cmp.
    -thanks as usual-.............

    ReplyDelete
    Replies
    1. Book loss in Medicamen Bio,hold the rest two

      Delete
  8. Can u tell me your view on hdil

    ReplyDelete
    Replies
    1. Stocks from this sector may face some pressure if there is no positive announcement in next RBI policy.Buy on dip around Rs.85-90/-

      Delete
  9. Valueji,

    Manappuram Is now at 38 can i take exposure of 5% of portfolio for 2 years?

    regards,
    Babitha

    ReplyDelete
  10. Hello VP ji,
    Thanks for all good reports here. I would like to know your view on Religare Tech and ThinkSoft.

    ReplyDelete
    Replies
    1. Sorry.. Not tracking both companies.

      Delete
  11. DEAR
    GUJARAT NRE HAS COAL MINES IN AUSTRALIA AND OTHER COUNRIES AND THEY ARE ALSO IN TREADING BUSINESS. THERE IS BIG UPWARD MOVEMENT IN COAL PRICES. COMPANY HAS GOOD SALES AND NET PROFIT GROWTH Q2Q. THEN WHY THERE IS NO APPRICIATION IN CMP?

    PATIDAR

    ReplyDelete
    Replies
    1. Dear Patidar

      Not closely tracking this company , but bit skeptical about its management

      Delete
  12. how is epc industrie at 134 cmp.

    ReplyDelete
    Replies
    1. If in a position to subscribe Rights issue , go for it

      Delete
  13. Tracking your blogs has really become so easy now. The current format of Question & Replies just below it is awesome.

    Keep up the good work.

    ReplyDelete
  14. hi Value Pick - Is Camlin Fine a wait and play game? is there any point in accumulating now?

    Thanks
    Dan

    ReplyDelete
    Replies
    1. Dear Dan

      Really lost my interest due to unnecessary face value split

      Delete
  15. dear valuepick,
    can you advise about geodesic ltd.
    regards,

    ReplyDelete
  16. Hello VP,
    I would like to know your opinion on Hinduja Global Solution Ltd - good BPO presence, repetitive business, 6%+ dividend yield, couple of acquisitions in last year, revenue should be in excess of 1200 crore. Shall be grateful for your advice on buying it at CMP of Rs 310.

    ReplyDelete
    Replies
    1. Dear Kamal and Anonymous

      Not tracking these two , generally I have not enough knowledge to thoroughly analyse companies from IT sector.

      Delete

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