Tulsian told CNBC-TV18, “My pick is Ponni Sugars. In fact sugar has been my favourable sector.

My preference goes more for the Tamil Nadu sugar based companies for the simple reason that they have a higher crushing days, they have about more than 200 days in this season, also they have the prospects of raw processing also. In fact if you see all the companies in south, they have been going for raw sugar processing which adds extra sweetener in the time of the shortage. The target for the day is Rs 149.”

He further added, “For FY09, they had an EPS of close to about Rs 14 while in H1 they have already posted an EPS of Rs 17. Going by the improved realization because you have the almost fixed price for the sugarcane, while you keep fetching a higher price for your sugar and we have already seen sugar prices ex-mill in Tamil Nadu going as high as Rs 34-35 per kilogram and I won’t be surprised if in next couple of months it goes to Rs 40. So obviously the profitability of the company is likely to get further improved and in FY10 we can expect the company to post an EPS of Rs 40.”