Tuesday, December 29, 2015

SP Tulsian positive on dairy sector

SP Tulsian of sptulsian.com told CNBC-TV18, "I am holding very promising view on the dairy sector. In fact, if you see Godrej Industries having increased their stake to 51 percent in Creamline with Rs 150 crore, I tell you that is such an excellent enhancement. They have a strong presence. If you really see, Telangana, Andhra Pradesh, Tamil Nadu and if you really see the milk business has been thriving in that pocket, heritage food owned by the family of N Chandra Babu Naidu has been doing very well." "


There is immense potential to expand in the Southern pocket and then more special in Maharashtra, Gujarat. See, Maharashtra, Gujarat has become very crowded, Gujarat because of Amul and Maharashtra because of cooperative. There is a strong presence of cooperative in Maharashtra, if you see western Maharashtra, Satara, Sangli, Karad, Kolhapur, they are all very rich in milk producing and they are all predominantly controlled by the cooperatives; all these sugar lobby as well as milk," he added.

 "I do not think that there is any space in this and you cannot go upward. Maybe UP and all that, doing business and procuring milk again is a very difficult task maybe from the trade practices, I am not trying to cast my aspirations, but safety point of view, procuring the milk so ultimately, you are left with the southern states and you are left with ample this one. In fact, in Baramati, if you recall, Britannia is procuring their cheese and all that from dynamics dairy in which American company has acquired the stake.




" "I like Godrej; it has a subsidiary Godrej Agrovet. But overall, positive view on dairy sector, but you need to be very cautious taking valuations, so Kwality probably seems to have been running too much, maybe some momentum was speculative, play started having coming in now in the share," he said.



Resource:http://www.moneycontrol.com/news/stocks-views/sp-tulsian-positivedairy-sector_4689261.html

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