Azim Premji portfolio: Ace investor makes fresh entry in this sugar stock during June quarter – what should you know?

Billionaire investor Azim Premji, who is a former chairman of IT major Wipro, has taken a fresh position in sugar company – Balrampur Chini Mills Limited during the June 2022 quarter, the shareholding pattern of the company available on the BSE showed. 

According to the June holding pattern of Balrampur Chini, Azim Premji Trust has picked up 25,23,641 equity shares or a 1.24 per cent stake in the company. The philanthropist’s firm has bought these shares for over Rs 96.2 crore, a stock analysis website trendlyne.com mentioned. 

Besides adding Balrampur to his portfolio in the June quarter, the ace investor has trimmed 0.02 per cent stakes in his founding company – Wipro, trendlyne.com showed. Premji falls under the promoter holding of Wipro and has almost 80 per cent stakes in the fourth largest IT service company. 

Renowned investor Premji and associates publicly hold 3 stocks with a net worth of over Rs 166,252.7 crore as of July 28, 2022, as per trendlyne.com. Apart from Balrampur Chini and Wipro – the investor also holds about 1.5 per cent stakes in Tube Investments of India Ltd, as per June quarter holding. 

The sugar sector has been most lucrative on the back of the government’s initiative regarding ethanol blending in fuel. In March, the government extended the timeline for disbursement of loans for ethanol projects under different schemes till September 30, 2022. 

Besides, higher crude oil prices have brought sugar companies a topic of discussion, with an aim to blend ethanol, a bi-product of sugar, in fuel at maximum level. Earlier in June, PM Modi had said India has achieved 10 per cent ethanol blending of petrol five months ahead of schedule. 

Phillip Capital Research in its report on the sugar sector listed important triggers for the industry: Ethanol being a saviour for the sugar industry; managing the global sugar deficit and the future of value addition and co-generation of the sector.   

Sugar companies generate additional income by selling surplus power, mainly to state electricity boards and most states have started lowering power purchase prices, which has reduced income from co-generation, the report further stated.