 "Sugar shares in focus on import duty hike; Dwarikesh Sugar hits record high")
Shares of sugar companies were trading higher by up to 5% on the BSE on expectation of favourable outlook in FY2018, supported by the recent hike in import duty and a tight domestic stock situation.
Dwarikesh Sugar Industries, Uttam Sugar Mills, Avadh Sugar, Dhampur Sugar Mills, Simbhaoli Sugar and Thiru Arooran Sugars were up in the range of 4% to 5% on BSE. In comparison, the S&P BSE Sensex was up 0.36% at 32,425 points at 10:52 am.
Dwarikesh Sugar Industries (DSIL) surged 6% to Rs 508, also its record high on BSE. In the last eight trading sessions, the stock has rallied 18% after rating agency ICRA upgraded credit rating for the Rs 600 crore Line of Credit of the company. The outlook on the long-term rating is stable. On comparison, the S&P BSE Sensex was up 1.6% during the period.
According to ICRA , “the rating upgrade factors in the better-than-anticipated operational and financial performance of DSIL in FY2017 as well as the fact that the bulk of its operational cash flows have been used to reduce debt levels and thereby, improve debt metrics.”
“This apart, ICRA has factored in the continued favourable outlook for its core sugar business in FY2018, supported by the recent hike in import duty and a tight domestic stock situation. This is likely to support the sugar prices in the near term, and is expected to result in healthy profits and accruals in FY2018 as well,” DSIL said in a statement.
“Consequently, ICRA expects DSIL to use these cash flows for further debt repayment and largely complete its long-term debt obligations by March 31, 2018. The ratings continue to factor in the company’s forward integration into cogeneration and distillery businesses, which provide alternate revenue streams and reduce the impact of the cyclicality of the sugar business to an extent,” it added.
Dwarikesh Sugar Industries, Uttam Sugar Mills, Avadh Sugar, Dhampur Sugar Mills, Simbhaoli Sugar and Thiru Arooran Sugars were up in the range of 4% to 5% on BSE. In comparison, the S&P BSE Sensex was up 0.36% at 32,425 points at 10:52 am.
Dwarikesh Sugar Industries (DSIL) surged 6% to Rs 508, also its record high on BSE. In the last eight trading sessions, the stock has rallied 18% after rating agency ICRA upgraded credit rating for the Rs 600 crore Line of Credit of the company. The outlook on the long-term rating is stable. On comparison, the S&P BSE Sensex was up 1.6% during the period.
According to ICRA , “the rating upgrade factors in the better-than-anticipated operational and financial performance of DSIL in FY2017 as well as the fact that the bulk of its operational cash flows have been used to reduce debt levels and thereby, improve debt metrics.”
“This apart, ICRA has factored in the continued favourable outlook for its core sugar business in FY2018, supported by the recent hike in import duty and a tight domestic stock situation. This is likely to support the sugar prices in the near term, and is expected to result in healthy profits and accruals in FY2018 as well,” DSIL said in a statement.
“Consequently, ICRA expects DSIL to use these cash flows for further debt repayment and largely complete its long-term debt obligations by March 31, 2018. The ratings continue to factor in the company’s forward integration into cogeneration and distillery businesses, which provide alternate revenue streams and reduce the impact of the cyclicality of the sugar business to an extent,” it added.
| COMPANY | LATEST | 1-MONTH BEFORE | GAIN(%) |
| SH.RENUKA SUGAR | 18.15 | 12.58 | 44.28 |
| UTTAM SUG.MILLS | 166.40 | 124.90 | 33.23 |
| DHAMPUR SUGAR | 242.00 | 191.40 | 26.44 |
| BANNARI AMM.SUG. | 2098.00 | 1790.50 | 17.17 |
| DALMIA BHARAT | 156.90 | 134.40 | 16.74 |
| DWARIKESH SUGAR | 499.25 | 430.40 | 16.00 |
| UGAR SUGAR WORKS | 27.75 | 24.80 | 11.90 |
| SIMBHAOLI SUGAR | 32.60 | 29.55 | 10.32 |
| TRIVEN.ENGG.IND. | 80.70 | 73.15 | 10.32 |
| SAKTHI SUGARS | 30.50 | 27.80 | 9.71 |
| BAJAJ HINDUSTHAN | 16.03 | 14.65 | 9.42 |
| EID PARRY | 336.25 | 309.90 | 8.50 |
| THIRU AROOR. SU. | 61.60 | 57.00 | 8.07 |
| SIR SHADI LAL | 106.00 | 98.95 | 7.12 |
| KCP SUGAR &INDS. | 31.30 | 29.30 | 6.83 |
| BALRAMPUR CHINI | 160.30 | 150.90 | 6.23 |
| S&P BSE Sensex | 32425.00 | 30921.61 | 4.86 |
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