Sugar stocks hit 52-week high; Dwarikesh Sugar zooms over 100% in October

Dalmia Bharat, Dhampur Sugar, Uttam Sugar and Sakthi Sugars have rallied more than 70% thus far in October.,

Shares of sugar companies are continued at their upward march with most of stocks from the sector rallied more than 40% thus far in current month on concerns of global shortage of the sweetener due to lower production.

Dalmia Bharat Sugar, Dhampur Sugar Mills, Dwarikesh Sugar, Oudh Sugar Mills, Triveni Engineering, Upper Ganges Sugar and Uttam Sugar Mills are quoting at their respective 52-week highs.

Most of the sugar stocks rallied in the range of 40% to 110% as compared to 4.7% rise in the Sensex thus far in October.

Among the individual stocks, Dwarikesh Sugar Industries has zoom 113% from Rs 27.70 to Rs 59.05 during the current month.

There is general buoyancy and improvement of investors’ sentiments with respect to sugar sector in recent times on account of expected lower production in sugar season 2015-16.

“Onus of compulsory export of sugar on all the sugar mills to the extent of four million tons leading to absorption of excess availiblity of sugar in the market & likely impact in improvement in sugar prices in times to come, exemption from excise duty on supply of ethanol to oil manufacturing companies for blending with petrol etc,” Dwarikesh Sugar said on October 9, on clarification on upsurge in the equity price.

According to Business Standard reports, a sugar production in the 2015-16 crop marketing year, started from October, is estimated to be around 26 million tonnes (mt), about two mt less than last year and below earlier projections, quoting a senior government official.

The drop has been mainly due to extended dry weather in Maharashtra and Karnataka. The expected fall in output, comes days after Indian Sugar Mills Association, lowered its forecast for the 2015-16 crop by one mt. CLICK HERE TO READ FULL REPORT.

Dalmia Bharat Sugar, Dhampur Sugar, Uttam Sugar, Sakthi Sugars, Simbhaloi Sugars, Shree Renuka Sugars, Oudh Sugar Mills and Dharani Sugars have rallied more than 60% so far in the current month.

Name	30 Sep,2015	21 Oct,2015	% chg
Dwarikesh Sugar	27.70	59.05	113.18
K M Sugar Mills	2.02	3.99	97.52
Dalmia Sugar	25.00	48.30	93.20
Dhampur Sugar	31.20	59.50	90.71
Uttam Sugar	11.24	19.85	76.60
Sakthi Sugars	15.07	26.05	72.86
Shree Renuka Sugars	7.21	12.07	67.41
Dharani Sugars	12.30	20.57	67.24
Simbhaoli Sugars	9.55	15.80	65.45
Oudh Sugar Mills	18.10	29.00	60.22
Upper Ganges Sugar	37.79	59.00	56.13
Rana Sugars	2.46	3.73	51.63
KCP Sugar & Inds	14.26	21.50	50.77
Rajshree Sugar	18.14	27.00	48.84
Bajaj Hindusthan Sugar	13.96	20.60	47.56
Triveni Engineering	25.90	37.65	45.37
LTP - Last traded price on BSE in Rs at 09:37 am.