Sugar stocks extend rally; Dharani Sugars, Kesar Enterprises up over 10%
Dharani Sugars, Kesar Enterprises, Triveni Engg,, Dalmia Bharat Sugar and Mawana Sugars were up 10%-20%.
 "Sugar stocks extend rally; Dharani Sugars, Kesar Enterprises up over 10%")
Shares of sugar companies continued to trade higher for the second straight day with stocks of Dharani Sugars & Chemicals, Mawana Sugars, Kesar Enterprises, Triveni Engineering & Industries, Dalmia Bharat Sugar and Rajshree Sugars rallying more than 15% each in the past two trading sessions.
At 01:08 pm, Dharani Sugars & Chemicals (up 20% at Rs 41), Kesar Enterprises (14% at Rs 55), Dalmia Bharat Sugar and Industries (12% at Rs 126), Mawana Sugars (11% at Rs 62), Triveni Engineering & Industries (10% at Rs 61) and Rajshree Sugars & Chemicals (10% at Rs 57) were up between 10%-20% on the BSE. The S&P BSE Sensex was up 0.26% or 73 points at 28,672.
Domestic sugar industry has started showing signs of turnaround with surging prices and depletion in buffer stocks due to decrease in global as well as domestic production and steady growth in consumption, rating agency Care said in a recent report.
CARE expects stable outlook for industry in medium-term on the back of favourable developments in SS15-16, envisaged scenario of consumption outpacing production for SS2016-17 and supportive measures by the government.
“There are two basic reasons for much better sugar prices in the world. First, crops are bad in Asia, including India, China and Thailand. Second, there is no longer an artificial pressure on Brazilian producers to produce less ethanol and more sugar. In the past 12 months, the pricing policy there was changed to a free market. With oil at $50 a barrel, less than half its peak, ethanol prices are close to their highest,” said Narendra Murkimbi, managing director, Shree Renuka Sugars, the Business Standard report suggests. LINK.
At 01:08 pm, Dharani Sugars & Chemicals (up 20% at Rs 41), Kesar Enterprises (14% at Rs 55), Dalmia Bharat Sugar and Industries (12% at Rs 126), Mawana Sugars (11% at Rs 62), Triveni Engineering & Industries (10% at Rs 61) and Rajshree Sugars & Chemicals (10% at Rs 57) were up between 10%-20% on the BSE. The S&P BSE Sensex was up 0.26% or 73 points at 28,672.
Domestic sugar industry has started showing signs of turnaround with surging prices and depletion in buffer stocks due to decrease in global as well as domestic production and steady growth in consumption, rating agency Care said in a recent report.
CARE expects stable outlook for industry in medium-term on the back of favourable developments in SS15-16, envisaged scenario of consumption outpacing production for SS2016-17 and supportive measures by the government.
“There are two basic reasons for much better sugar prices in the world. First, crops are bad in Asia, including India, China and Thailand. Second, there is no longer an artificial pressure on Brazilian producers to produce less ethanol and more sugar. In the past 12 months, the pricing policy there was changed to a free market. With oil at $50 a barrel, less than half its peak, ethanol prices are close to their highest,” said Narendra Murkimbi, managing director, Shree Renuka Sugars, the Business Standard report suggests. LINK.
| Company | 15/09/2016 | LTP | % chg |
| Dharani Sugars | 33.10 | 41.25 | 24.62 |
| Mawana Sugars | 52.05 | 61.75 | 18.64 |
| Kesar Enterprise | 46.05 | 54.50 | 18.35 |
| Triveni Engg & Ind. | 52.05 | 61.05 | 17.29 |
| Dalmia Bharat Sugar | 108.80 | 126.65 | 16.41 |
| Rajshree Sugars | 49.60 | 57.20 | 15.32 |
| Simbhaoli Sugar | 30.80 | 34.55 | 12.18 |
| Uttam Sug.Mills | 52.70 | 59.00 | 11.95 |
| Thiru Aroor. Su. | 66.10 | 74.00 | 11.95 |
| Piccadily Sugar | 7.38 | 8.25 | 11.79 |
| KCP Sugar | 30.95 | 34.15 | 10.34 |
| Ugar Sugar | 38.10 | 41.90 | 9.97 |
| Rana Sugars | 9.82 | 10.79 | 9.88 |
| Dwarikesh Sugar | 242.15 | 266.00 | 9.85 |
| KM Sugar Mills | 12.85 | 14.10 | 9.73 |
| Sensex | 28412.89 | 28672 | 0.91 |
| LTP: Last traded price on BSE in Rs at 01:08 pm. | |||