DJ MARKET TALK: MS Downgrades Indian Sugar Industry To Cautious
Published: 03/11/2010, 7:00:13 AM
DJ MARKET TALK: MS Downgrades Indian Sugar Industry To Cautious 0659 GMT [Dow Jones] STOCK CALL: Morgan Stanley downgrades Indian sugar industry to Cautious vs Attractive; says further downside in sugar stocks possible. "Higher-than-expected production in fiscal 2010, a sharp decline in international sugar prices, potential large sugarcane production in FY2011, and consensus downgrades are likely to drive stock underperformance." Notes, Indian Sugar Mills Association now estimates FY10 domestic sugar production at 16.8 million tons, up from 15 million tons; says sugar production likely to equal FY11 domestic consumption, capping domestic prices. Cuts Balrampur Chini Mills (500038.BY) target to INR85 vs INR200, cuts Shree Renuka Sugars (532670.BY) target to INR140 vs INR250; downgrades both to Underweight from Overweight. But adds, "Investors with a large risk appetite might buy sugar as a hedge against poor monsoon." Balrampur last down 2.5% at INR97.40, Shree Renuka down 1.2% at INR170.65. (amitha.rajan@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires 03-11-10 0159ET Copyright (c) 2010 Dow Jones & Company, Inc. DJ info: 5064,55106,61025 N/DJCS,N/DJOS,N/OSAG,N/OSCM,N/OSTR,N/ALMT,N/ANL,N/ASMT,N/CMD,N/CNW,N/DJMT,N/DJW ,N/INMT,N/SCD,N/SGR,N/STK,N/WEI FSN55102 ACTV FINANCIAL FOOD GENERAL STOCKS SUGAR 2010-03-11 06:59:49 UTC ^^^^^^