9 sugar stocks zoom over 100% in 2016

Upper Ganges, Mawana Sugars, Oudh Sugar and Ugar Sugar have zoom more than 200% thus far in 2016.

Shares of 9 sugar companies have more than doubled thus far in the calendar year 2016.

Hope of strengthening of their financial health further owing to higher sugar prices due to a fall in production, both in India and other major producing countries, resulted in the appreciation, reports suggest.

Upper Ganges Sugar & Industries, Mawana Sugars, Oudh Sugar Mills, Ugar Sugar Works, Dharani Sugars, Dwarikesh Sugar Industries, Uttam Sugar Mills, Thiru Arooran Sugars and Rajshree Sugars have rallied up to 350% so far in the current calendar year.

Total 34 sugar companies had posted an aggregate net profit of Rs 1,408 crore for the second half (October-March) of financial year 2016 (H2FY16), against a combined net loss of Rs 1,700 crore in the first half (April-September) or H1FY16. These companies had loss of Rs 1,268 crore in H2FY15 & Rs 979 crore in H1FY15.

According to Business Standard reports, industry officials fear that if yields (finished sugar output from cane) come lower than expected, production might fall further. This would help prices stay at elevated levels, which means companies will first generate a good amount of profit and cash to pay arrears and then repay debts. CLICK HERE TO READ THE FULL REPORT.

Name	31/12/2015	31/05/2016	LTP	% chg*	% chg#
Upper Ganges	68.20	166.30	302.25	81.75	343.18
Oudh Sugar Mills	34.95	79.55	122.75	54.31	251.22
Mawana Sugars	17.50	40.30	61.45	52.48	251.14
Ugar Sugar Works	12.99	28.00	44.10	57.50	239.49
Dharani Sugars	21.40	33.80	61.40	81.66	186.92
Uttam Sugar	28.25	49.30	74.80	51.72	164.78
Dwarikesh Sugar	98.85	193.15	256.30	32.69	159.28
Thiru Arooran	41.90	57.65	97.90	69.82	133.65
Rajshree Sugars	29.25	47.70	61.30	28.51	109.57
Bannari Amm.Sug.	1025.00	1745.50	1944.70	11.41	89.73
DCM Shriram Inds	91.40	138.10	171.30	24.04	87.42
Balrampur Chini	70.05	108.25	123.80	14.36	76.73
Dalmia Bharat	62.50	91.80	109.75	19.55	75.60
Kesar Enterprise	27.10	33.45	46.50	39.01	71.59
Dhampur Sugar	65.55	91.45	110.00	20.28	67.81
Parrys Sugar	29.60	38.50	49.65	28.96	67.74
Sensex	26117.54	26667.96	26341.00	-1.23	0.86
LTP : Last traded price on BSE at 10:42 AM
* Change over May 31, 2016; # change over December 31, 2015