Sugar shares in focus; Dhampur, Mawana, Dwarikesh up over 4%

Avadh Sugar, Magadh Sugar and Uttam Sugar Mills were trading higher by more than 5% on BSE

Shares of sugar companies were trading higher by up to 20% on BSE in otherwise weak market after the government imposed a limit on the amount of sugar that mills can sell in the market during February and March.

The market price of Avadh Sugar & Energy, Dhampur Sugar Mills, Magadh Sugar, Mawana Sugars, Dwarikesh Sugar and Uttam Sugar Mills were trading higher by more than 4% on BSE.

Dalmia Bharat Sugar, Triveni Engineering & Industries, Thiru Arooran Sugars, Sakthi Sugars, Shree Renuka Sugars and Rajshree Sugars up in the range of 3% to 4%. In comparison, the S&P BSE Sensex was trading 1.4% or 480 points lower at 33,933 at 10:29 AM.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
AVADH SUGAR	809.70	674.75	20.00
DHAMPUR SUGAR	208.40	193.80	7.53
MAGADH SUGAR	181.00	169.05	7.07
MAWANA SUGARS	64.15	60.55	5.95
UTTAM SUG.MILLS	121.40	115.10	5.47
DWARIKESH SUGAR	42.30	40.55	4.32
TRIVEN.ENGG.IND.	67.85	65.15	4.14
DALMIA BHARAT	110.30	106.15	3.91
GAYATRI SUGARS	12.10	11.69	3.51
THIRU AROOR. SU.	47.85	46.25	3.46

This move is to prevent sugar prices from falling sharply, which, in turn, would help mills in making sugarcane payments quicker to farmers.

At the end of February mills need to be holding as inventory at least 83% of the opening stock from January and February's production. The limit is 86% for the end March, the Reuters report suggested quoting the government order. CLICK HERE TO READ FULL REPORT

The government increased the import duty on sugar to 100% from 50% on Tuesday. The prime reason for the rise in import duty is to keep a check on the falling sugar prices and to avoid any cheaper imports of sugar from Pakistan in the wake of expected higher domestic sugar production in the current sugar season 2017-18.

The hike in import duty is expected to provide support the sugar prices and keep them stable in the near term, CARE Ratings said in a note.

Also, it is import to watch if the government takes some measures on the export front such as reduction in export duty on sugar or incentivises sugar exports when the production comes in full swing in the March quarter to avoid any surplus situation, it added.

Most the sugar stock have fallen an over 40% from their respective one-year highs and hitting 52-week lows on BSE in earlier of the current week.

	One-year high		One-year low		%
Company	Date	Price	Date	Price	Chg
Riga Sugar	25/04/2017	39.90	05/02/2018	11.90	-70.2
Sir Shadi Lal	20/09/2017	172.00	05/02/2018	53.55	-68.9
Magadh Sugar	28/07/2017	364.00	05/02/2018	128.55	-64.7
KM Sugar Mills	08/02/2017	37.50	05/02/2018	14.70	-60.8
Mawana Sugars	11/09/2017	144.90	06/02/2018	57.70	-60.2
Rana Sugars	08/02/2017	14.85	08/02/2018	6.01	-59.5
Ugar Sugar Works	08/02/2017	43.00	05/02/2018	19.85	-53.8
Dwarikesh Sugar	11/10/2017	80.50	05/02/2018	37.25	-53.7
Simbhaoli Sugar	09/02/2017	39.20	05/02/2018	18.90	-51.8
Sakthi Sugars	08/02/2017	43.20	05/02/2018	21.30	-50.7
Dalmia Bharat	05/05/2017	193.35	05/02/2018	98.75	-48.9
Rajshree Sugars	03/11/2017	74.80	06/02/2018	38.30	-48.8
Triven.Engg.Ind.	08/08/2017	107.90	05/02/2018	57.00	-47.2
Dhampur Sugar	01/11/2017	330.85	05/02/2018	174.95	-47.1
Thiru Aroor. Su.	08/02/2017	81.95	06/02/2018	43.75	-46.6
Balrampur Chini	13/09/2017	182.50	05/02/2018	105.70	-42.1
DCM Shriram Inds	17/05/2017	385.00	06/02/2018	228.00	-40.8
KCP Sugar &Inds.	16/02/2017	42.60	05/02/2018	25.40	-40.4
Ponni Sug.Erode	08/02/2017	230.00	06/02/2018	143.00	-37.8
Bajaj Hindusthan	02/01/2018	18.80	06/02/2018	12.85	-31.6