| Topic : Investment options for Middle Class |
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Activity:
Question posted: 11 24 2009 10:45:57 +0000,
4 answers, 612 views, last activity
07 06 2010 20:18:08 +0000
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You all know these days sugar is in news lately with its ever increasing prices, and with less supply there is a greater demand for sugar these days, which is an essential commodity in everbody's house, and this is showing its value on the market also, where recently Renuka sugars and Balrampur is making news. So being a newbie here, I would like to ask, Is it the right time to buy sugar sector stocks? Please share your views.
i don't think it is the right time to buy sugar stocks . the reason is that the kind of news we are seeing about the strike of farmers of westurn up the price of sugar cane is about to rise. govt is very strict on the price rise on sugar. sales of sugar factories has grow but the profit has not incresed by huge margin as the cane prices has incresed and the expenditure has also increased . we can see eps of stocks going down as most of the sugar companies have come up with qip issues in the last quarter.. so i am expecting a 25 to 30 decline in the sugar prices........ if anybody has any suggections then send me too....
This is a wonderful opinion. The things mentioned are unanimous and
needs to be appreciated by everyone.
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In the recent past the support price for the sugar cane has been increased by Rs.25/quintol, in response to that sugar cane industries raised their voice, they are finding difficult to maintain their profitability, they too demand hike in price for sugar. This is coupled with the demand in sugar in international market may lead to better result to sugar cane industries in near future. Better time to purchase a specific catagory stock will be when such catagory industries are facing difficult time, furter we expect favorable time to those industries in the nearest future. Assuming all other factors remainig sane, I too of opinion that the sugar Industry stocks may start gaining value appriciation.
I think yes, it is the right time to go for these stocks, there is a great mismatch in the supply demand in terms of sugar supply. And the price of sugar in some states has gone upto 35, and there is also news that there is no new supply of sugar in coming days, so the prices will go even further and yes we can go for sugar sector stocks for the moment which will give sweeter returns.
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