ET Now

ET Now caught up with Prakash Diwan, Director, Altamount Capital, for his take on the fertiliser and sugar spaces.

ET Now: What is your view on fertiliser and sugar? A lot of things are already in the pipeline, and there is much talk about what the new government is going to do to revive these spaces. Do you have any quick trades here?

Prakash Diwan: I see the sugar sector receiving more governmental sops moving forward. But I hope the government does not stop at disbursing sops. Much more than this is needed to revive this space. But I realise that this specific sector is going to be politically far more sensitive than, say, power or infra.

So, sugar is not the greatest of places to be in. But because the run-up there has not yet been very sharp, we could probably make some tactical trading calls. Within sugar pack I like Andhra Sugar. It has got a very persified business model, what with caustic soda contributing to the company’s growth.

One could look at RCF on the fertilizer space. Another choice could be a complex company like Rallis, which is very differently positioned but which people do tend to talk about.

As sectors, I would put both fertiliser and sugar as belonging to the secondary level. There are still enough opportunities in the primary sectors — infrastructure, banking, capital goods, etc.