Sugar shares extend rally; Dwarikesh, Dalmia Bharat, Oudh Sugar zoom over 70% in two weeks
Bannari Amman, Dalmia Bharat Sugar, Dwarikesh Sugar, Oudh Sugar and Riga Sugar hit 52-week highs on BSE
 "Sugar shares extend rally; Dwarikesh, Dalmia Bharat, Oudh Sugar zoom over 70% in two weeks")
Shares of sugar manufacturers continued to trade higher on the bourses in otherwise weak market.
Bannari Amman Sugars, Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, Oudh Sugar Mills and Riga Sugar Company have touched their respective 52-week highs on the BSE in intra-day trade today. At 11:15 AM, the S&P BSE Sensex was down 0.54% at 24,670.
Also Read: Global cues may push up sugar prices
In past two-weeks, most of the sugar stocks have rallied more than 20% as compared to 7% rise in the benchmark index. Since February 29, the market value of Dawrikesh Sugar Industries, Oudh Sugar Mills, Dalmia Bharat Sugar and Industries and Rajshree Sugars zoomed more than 50% each.
Also Read: Indian mills clinch sugar exports deals, first in 2 months
The rally comes on the back of expectations of lower domestic sugar output in SY16 owing to drought conditions in major producing states, together with mandatory exports notified by the Government of India that have led to an uptrend in domestic sugar prices.
Bannari Amman Sugars, Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, Oudh Sugar Mills and Riga Sugar Company have touched their respective 52-week highs on the BSE in intra-day trade today. At 11:15 AM, the S&P BSE Sensex was down 0.54% at 24,670.
Also Read: Global cues may push up sugar prices
In past two-weeks, most of the sugar stocks have rallied more than 20% as compared to 7% rise in the benchmark index. Since February 29, the market value of Dawrikesh Sugar Industries, Oudh Sugar Mills, Dalmia Bharat Sugar and Industries and Rajshree Sugars zoomed more than 50% each.
Also Read: Indian mills clinch sugar exports deals, first in 2 months
The rally comes on the back of expectations of lower domestic sugar output in SY16 owing to drought conditions in major producing states, together with mandatory exports notified by the Government of India that have led to an uptrend in domestic sugar prices.
"India has exported 29.95 lakh tonnes (LT) of sugar during the first ten months of the current fiscal that is valued at $194 million. It is 56% higher than 19.55 LT exported in the whole of FY2015 fiscal (valued at $103.93 million)," points out G. Chokkalingam, founder & managing director, Equinomics Research & Advisory.
Also Read: Sugar: Tide turning in favour
Also Read: Sugar: Tide turning in favour
"On the other hand, sugar output of India, the world's second-largest producer and biggest consumer, is estimated to decline to 26 MT in 2015-16 marketing year as against 28.3 MT in the previous year due to deficit rains. We firmly believe that a still significant upside is left in the sugar stocks like KCP Sugar and Andhra Sugar," he adds.
ICRA upgrade
ICRA upgrade
Dwarikesh Sugars Industries hit the upper circuit for second straight day on Tuesday, up 10% at Rs 209, also its fresh 52-week high on the BSE. The stock has appreciated more than 100% from Rs 102 on February 29, after the rating agency ICRA upgraded the long-term rating of the Line of Credit (LOC). The outlook on the long term rating has been changed to positive from stable.
Also Read: Haryana produces over 15.66 lakh quintals sugar: Official
“The rating action factors in the improved outlook for the company’s core sugar business arising out of the significant increase in domestic sugar prices coupled with an improvement in the recovery of sugar from sugarcane leading to lower cost of production during SY16,” ICRA said in a statement.
According to Reuters report, Indian mills have scaled back expectations of sugar output due to drought, notably in Maharashtra, a major growing region. CLICK HERE TO READ FULL REPORT.
| Name | 29/02/2016 | 14/03/2016 | LTP | % chg* | % chg1# |
| Dwarikesh Sugar | 102.10 | 189.90 | 208.80 | 104.51 | 9.95 |
| Dalmia Bharat Sugar | 60.80 | 96.65 | 105.10 | 72.86 | 8.74 |
| Oudh Sugar Mills | 37.30 | 54.30 | 63.50 | 70.24 | 16.94 |
| Rajshree Sugars | 23.00 | 33.50 | 36.85 | 60.22 | 10.00 |
| Upper Ganges | 57.00 | 75.85 | 84.50 | 48.25 | 11.40 |
| Uttam Sugagr Mills | 21.20 | 27.30 | 30.20 | 42.45 | 10.62 |
| Dhampur Sugar | 56.00 | 74.35 | 79.15 | 41.34 | 6.46 |
| Sakthi Sugars | 23.40 | 30.50 | 32.50 | 38.89 | 6.56 |
| KCP Sugar &Inds. | 19.40 | 24.90 | 26.00 | 34.02 | 4.42 |
| Ponni Sugar Erode | 164.10 | 223.50 | 216.70 | 32.05 | -3.04 |
| Mawana Sugars | 18.00 | 22.20 | 23.30 | 29.44 | 4.95 |
| Rana Sugars | 3.85 | 4.63 | 4.85 | 25.97 | 4.75 |
| Triveni Engg | 39.05 | 48.05 | 48.70 | 24.71 | 1.35 |
| Shree Renuka | 11.65 | 13.84 | 14.51 | 24.55 | 4.84 |
| DCM Shriram Inds | 85.00 | 99.75 | 105.00 | 23.53 | 5.26 |
| Bannari Amm.Sug. | 1055.00 | 1213.75 | 1290.00 | 22.27 | 6.28 |
| Balrampur Chini | 81.00 | 95.45 | 97.50 | 20.37 | 2.15 |
| Bajaj Hindusthan | 14.75 | 16.73 | 17.45 | 18.31 | 4.30 |
| Ugar Sugar Works | 12.61 | 14.29 | 14.89 | 18.08 | 4.20 |
| EID Parry | 168.55 | 190.20 | 198.10 | 17.53 | 4.15 |
| LTP : Last traded price on BSE in Rs at 11:15 | |||||
| *% change over 29/2/2016 | |||||
| #% change over 14/3/2016 | |||||