Sugar shares in focus; Dhampur Sugar, Uttam Sugar up over 5%
Uttam Sugar, Dhampur Sugar, Rajshree Sugar and Dwarikesh Sugar were up in the range of 3% to 10%
 "Sugar shares in focus; Dhampur Sugar, Uttam Sugar up over 5%")
premium
Shares of sugar companies were in focus, trading higher by up to 10% in noon deals. Uttam Sugar Mills, Dhampur Sugar Mills, Rajshree Sugar, Dwarikesh Sugar, Kesar Enterprises, Triveni Engineering & Industries, KCP Sugar and Mawana Sugars were up in the range of 3% to 10% on the BSE. In comparison, the S&P BSE Sensex was down 0.15% at 29,745 points at 12:57 pm.
In the past five trading days till yesterday, most of the sugar stocks had underperformed the market after the government decided to allow import of a restricted quantity of only 5 lakh MT of raw sugar at zero duty through open general license.
Credit rating agency ICRA on Wednesday said that this is unlikely to have any significant negative impact on the prices or profitability of sugar mills in the near-term.
CRISIL, last week, said that the credit risk profiles of sugar manufacturers are likely to improve over the medium term with sugar prices expected to remain firm over the current and next sugar seasons (October 1 to September 30).
The resultant higher profit and cash accrual is expected to be used by manufacturers to either reduce debt or invest in the relatively more stable ancillary business of distillery and electricity co-generation.
“Sugar prices are expected to remain firm in sugar season 2017 (SS2017) because closing inventory is expected to be at an 8-year-low following a fall in production in Maharashtra and Karnataka. That’s despite the government’s recent move to allow duty-free import of raw sugar of 0.5 million tonne upto June 12, 2017, and reduction in consumption due to demonetization,” rating agency said in a report.
In the past five trading days till yesterday, most of the sugar stocks had underperformed the market after the government decided to allow import of a restricted quantity of only 5 lakh MT of raw sugar at zero duty through open general license.
Credit rating agency ICRA on Wednesday said that this is unlikely to have any significant negative impact on the prices or profitability of sugar mills in the near-term.
CRISIL, last week, said that the credit risk profiles of sugar manufacturers are likely to improve over the medium term with sugar prices expected to remain firm over the current and next sugar seasons (October 1 to September 30).
The resultant higher profit and cash accrual is expected to be used by manufacturers to either reduce debt or invest in the relatively more stable ancillary business of distillery and electricity co-generation.
“Sugar prices are expected to remain firm in sugar season 2017 (SS2017) because closing inventory is expected to be at an 8-year-low following a fall in production in Maharashtra and Karnataka. That’s despite the government’s recent move to allow duty-free import of raw sugar of 0.5 million tonne upto June 12, 2017, and reduction in consumption due to demonetization,” rating agency said in a report.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| UTTAM SUG.MILLS | 112.25 | 102.05 | 10.00 |
| DHAMPUR SUGAR | 230.55 | 213.55 | 7.96 |
| KESAR ENTERPRISE | 56.00 | 52.40 | 6.87 |
| SIR SHADI LAL | 127.00 | 118.90 | 6.81 |
| DWARIKESH SUGAR | 474.00 | 445.50 | 6.40 |
| THIRU AROOR. SU. | 64.90 | 61.15 | 6.13 |
| RAJSHREE SUGARS | 61.30 | 58.00 | 5.69 |
| KM SUGAR MILLS | 28.30 | 26.85 | 5.40 |
| KHAITAN (INDIA) | 21.20 | 20.25 | 4.69 |
| EID PARRY | 289.00 | 277.35 | 4.20 |
| UGAR SUGAR WORKS | 33.90 | 32.60 | 3.99 |
| SAKTHI SUGARS | 35.60 | 34.35 | 3.64 |
| KCP SUGAR &INDS. | 38.85 | 37.60 | 3.32 |
| MAWANA SUGARS | 85.40 | 82.85 | 3.08 |
| DALMIA BHARAT | 172.45 | 167.35 | 3.05 |
| TRIVEN.ENGG.IND. | 93.40 | 90.75 | 2.92 |
| DHARANI SUGARS | 30.90 | 30.05 | 2.83 |
| RANA SUGARS | 10.20 | 9.94 | 2.62 |
| PARRYS SUGAR | 63.50 | 61.90 | 2.58 |
| DHAMPUR.SPL.SUG. | 18.20 | 17.75 | 2.54 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%