Sugar Companies - Better time ahead...

	Active Topics Memberlist Calendar Search Help
	Register Login

Indian Economy - Powering Ahead!
The Equity Desk Forum :Economy, Markets and commodities :Indian Economy - Powering Ahead!

Topic: Sugar Companies - Better time ahead...

	Page of 16 Next >>

Author

Message

manishdave
Senior Member

Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 1371

Topic: Sugar Companies - Better time ahead...
Posted: 15/Jul/2008 at 9:13am

It is tough to makr bullish call in this market and particularly in sector like sugar which has heavy Govt. interference. But ALL negatives are priced in and sugar price is going to boom for next 18 months. It is already on upward march and fundamntals suggest that it will go much higher and that should be good news for sugar companies.

Few points here:

Industry has heavy unsold inventory and prices are up 40-50% than last year.

Decontrol is possibility after election. If ethanol mkt needs to be developed decontrol is must and India will consider ethanol. Matter of time.

Supply is decreasing faster than expected. Nothing can change abt that in next 18-24 months.

Some companies may post profit of abt 1/2 of current market cap.

I don't have much idea abt companies but sector will boom.

IP Logged

Mohan
Senior Member

Joined: 09/Feb/2007
Location: United States
Online Status: Offline
Posts: 1855

Posted: 15/Jul/2008 at 9:21am

Good call. I was just reading a report on Sugar last week.India and Brazil are the two largest growers of Sugar incidently.

Be fearful when others are greedy and be greedy when others are fearful.

IP Logged

manishdave
Senior Member

Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 1371

Posted: 31/Dec/2008 at 6:16pm

Sugar price is ready to get set go....

IP Logged

nav_1996
Senior Member

Joined: 08/Sep/2006
Online Status: Offline
Posts: 803

Posted: 31/Dec/2008 at 6:46pm

Won't falling crude impact the sugar prices as ethanol production may no longer be lucrative.

IP Logged

manishdave
Senior Member

Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 1371

Posted: 31/Dec/2008 at 6:54pm

Brazil was making ethanol even when price of oil was $20. Yes there will be less cane converted to ethanol bt that switching takes some time and capacity. But they have some crop problem and india has crop problem. So shortage is certain. At current sugar price even Brazil is no making money. So companies are not expanding and they are facing problem in current production.

IP Logged

PrashantS
Senior Member

Joined: 14/Oct/2006
Online Status: Offline
Posts: 1294

Posted: 31/Dec/2008 at 7:36pm

actually there is this strange theory that in bear mkts sugar is consumed more and in bull market people like to eat less sweets and sugar stuff coz they want to remain fit ... sugar may sweaten some sugar bulls

IP Logged

Kalyan
Groupie
Groupie

Joined: 16/Aug/2006
Location: India
Online Status: Offline
Posts: 91

Posted: 02/Jan/2009 at 1:18pm

Madu Kela said "maybe sugar could become interesting from here. Basically, we are still studying that sector in depth but sugar could become interesting."

Can anyone in the TED refer some stocks that can multibagger from here.

kalyan

IP Logged

rapidriser
Senior Member

Joined: 18/Nov/2007
Location: India
Online Status: Offline
Posts: 966

Posted: 02/Jan/2009 at 4:11pm

Originally posted by Kalyan

Madu Kela said "maybe sugar could become interesting from here. Basically, we are still studying that sector in depth but sugar could become interesting."

Can anyone in the TED refer some stocks that can multibagger from here.

Considering the way all sugar stocks have been beaten down, it is advisable to intially enter into the sector with leaders like Bajaj Hindustan or Balrampur Chini. If the sector does not perform, your downside will be better protected if you invest in the leaders. If there is indeed a bull market in sugar, then you can add smaller players later.

IP Logged

Page of 16 Next >>

Printable version

Forum Jump

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

This page was generated in 0.141 seconds.

Bookmark this Page

Most Participated Topic