Sell Bajaj Hindusthan: Sharma

Written By Unknown on Rabu, 13 Maret 2013 | 20.07

VK Sharma, Head Private Broking & Wealth Management, HDFC Securities is of the view that one should sell Bajaj Hindusthan .

Sharma told CNBC-TV18, "The prospects of the industry would change after you have whatever those steps, which are required when levy sugar goes and partial decontrol happens. The sector would look up but I would advise that this sugar sector is a very small sector in the overall economy. My sense is that already a lot of people are buying these stocks in anticipation of those events happening. So, essentially when you are invested in Bajaj Hindusthan, it is less of a sugar company and more of a power company."

He further added, "Apart from the power that it produces by crushing its own cane and using that bagasse as a raw material, it is also going in for the regular power plants, which use coal as a raw material. So, essentially you are not into a sugar company. If your idea is to essentially invest in the sugar company, you can look at Balrampur Chini Mills otherwise I would advise you to sell this stock at the rallies whenever this decision comes in, you should be selling when the news arise."



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