Sugar stocks rally up to 9% amid improved outlook, strong operational performance; Mawana Sugars, Dalmia Bharat Sugar hit 52-week high
In an otherwise volatile market, sugar stocks sweetened up to 9 per cent on the BSE intraday trade on Tuesday amid expectation of strong operational performance and higher sugar realizations.
In an otherwise volatile market, sugar stocks sweetened up to 9 per cent on the BSE intraday trade on Tuesday amid expectation of strong operational performance and higher sugar realizations.
Individually, shares of Mawana Sugars and Dalmia Bharat Sugar touched 52-week highs on the BSE, after surging around 9 and 5.5 per cent respectively. While Dhampur Sugar Mills, Triveni Engineering & Industries, Balrampur Chini Mills jumped around 5.5, 5, and 4 per cent respectively on the BSE.
See Zee Business Live TV Streaming Below:
Similarly, Dwarikesh Sugar Industries and EID Parry were up between 3 and 4 per cent on the BSE.
Most of the sugar companies’ stocks traded close to their respective 52-week highs. In comparison, the S&P BSE Sensex was up 0.24 per cent at 57,302 points at 12:11 pm.
The government in March had extended the timeline for disbursement of loan for ethanol projects under different schemes till September 30, 2022, to boost domestic production and achieve ethanol blending of 20 per cent by 2025.
Besides, crude oil prices continue to rise, as prices rose over 1 per cent on Monday, with Brent crude topping $114 a barrel, as outages in Libya deepened concern over tight global supply amid Russia and Ukraine crisis, according to a Reuters report.
Union Minister Nitin Gadkari earlier last month in the conference had highlighted the strong need to reduce surplus sugar production and increase ethanol production to meet the requirement of 20 per cent target blending with petrol by 2025 as well as ethanol demand from new flex-fuel vehicles.
Phillip Capital Research Analyst Vikram Suryavanshi in its report on the sugar sector listed important triggers for the industry: Ethanol being a saviour for the sugar industry; managing 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, Suryavanshi further said in his report.
Similarly, a rating agency ICRA remains optimistic about the industry's inventory levels for the current season due to favourable international sugar realisations.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.