Stock views on Triveni Engineering, Shree Renuka Sugars

India Infoline on SHREE RENUKA SUGARS

In the midst of a weak pricing scenario over the past two years, Renuka Sugars continues to expand through acquisitions and greenfield projects. It will invest Rs 3.5 bn in a 2,000-tpd refinery in Mundra SEZ to be commissioned by 2010. This will take its refining capacity to 6,000 tpd. With sugar prices set to improve by end of 2008-09 crushing season, ongoing capex would boost sugar volumes.


Centrum Broking on Triveni Engineering

Triveni Engineering (TEIL) is among the largest sugar producers in India with a presence in sugar and engineering segments. This makes the stock a strong play in the sugar cycle at relatively lower risk, given its additional presence in engg business. We expect the company to clock 21.9% revenue and 58.1% net profit CAGR over FY08-10E. Sugar prices will rise, given the domestic and global deficit situation.