Should you go for sugar stocks now? Dipan Mehta answers

economictimes.indiatimes.com:

Dipan Mehta, Director, Elixir Equities, says that typically, after a few quarters of downbeat numbers, you do see an upswing in sugar numbers as well and valuations are reasonable. In markets like this, investors are looking for good quality, low PE stocks, and this is one segment that certainly fits that criteria.

What the outlook is on the entire sugar basket? Of course, there is some positive news but I have noticed that most of these stocks are in limbo up until the time that there is some incremental news that comes in. What is your take on sugar stocks buzzing in trade today?
Dipan Mehta: When it comes to sugar stocks, the numbers were extremely disappointing and it is a highly volatile type of industry. But on the whole, medium-term prospects are good because this commitment of the government to go in for higher and higher blending of ethanol certainly is going to provide long-term stability to earnings and there were some hiccups when it came to what feedstock could and could not be used for ethanol, but now that is more or less sorted and also sugar prices have gone up. I would be intuitively more positive about the sugar industry.

Typically, after a few quarters of downbeat numbers, you do see an upswing in sugar numbers as well and valuations are reasonable. In markets like this, way investors are