In a Sweet Spot: EID Parry climbs 6% on reports of low sugar production in Maharashtra
At around 12:10 p.m., shares of EID Parry traded 6.75 per cent or Rs 33.1 higher on the BSE at Rs 523.3 apiece. The market capitalisation stood at Rs 9,289.5 crore at around the same time.
EID Parry (India) shares rose over 6 per cent in Thursday's trade (November 23) to touch the day's high of Rs 524 apiece on the BSE. As per analysts, the stock witnessed demand after reports suggested low sugar production in Maharashtra-based factories, because of which sugar prices will remain firm.
According to Reuters, India, the world's second-biggest sugar producer, saw its weakest monsoon since 2018, leading to a rise in prices.
Elara Capital, in its report, said that sugar prices in India increased 5-8 per cent year-on-year (YoY) in the second quarter.
At around 12:10 p.m., shares of EID Parry traded 6.75 per cent or Rs 33.1 higher on the BSE at Rs 523.3 apiece. The market capitalisation stood at Rs 9,289.5 crore at around the same time.
"The stock is on an upward trajectory after news of low sugar production in Maharashtra-based factories this year. This means sugar production will be affected and prices will remain firm," said Narendra Solanki, Head of Fundamental Research and Investment Services at Anand Rathi Shares and Stock Brokers.
Solanki added that this will also be beneficial for non-Maharashtra-based companies, as the price will increase due to low production.
Further, from a global perspective, the expert said that a decline in the supply of sugar in the global markets due to low production in Brazil this year will benefit the Indian sugar companies, including EID Parry.
It should be noted that a rise in the price of sugar is beneficial for sugar manufacturers such as EID Parry.
According to Zee Business Research, through a bulk deal, the company's promoter, Ambadi Enterprises, sold a 2.27 per cent stake in the company. Although Ambadi Investment still holds 38 per cent of the stake.
EID Parry share price: Past performance
In 2023 so far, shares of EID Parry have lost over 10 per cent against the Nifty50's rise of over 8 per cent.
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