 "Sugar shares in focus; Dhampur Sugar, Uttam Sugar up over 5%")
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 |
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