Sugar stocks in focus; EID Parry hits 52-wk high, Balrampur, Triveni up 5%

EID Parry's stock has zoomed 63 per cent in the past month

Shares of sugar companies were in focus at the bourses on Friday. The stocks gained up to 7 per cent on the BSE on report that the government is considering proposal to increase the minimum selling price (MSP) of sugar from the current Rs 31 per kg. Moreover, the strong operational performance of sugar companies in the January-March quarter (Q4FY20) results declared so far also aided the sentiment.

Balrampur Chini Mills, EID Parry (India), Triveni Engineering & Industries, Dalmia Bharat Sugar and Industries, Shree Renuka Sugars, Avadh Sugar, Dwarikesh Sugar and Dhampur Sugar Mills were up in the range of 2 per cent to 7 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.15 per cent at 34,257 points at 10:49 am.

“The government is considering a proposal to increase the minimum selling price (MSP) of sugar from Rs 31 per kg in order to help millers clear cane dues of about Rs 22,000 crore to farmers,” a PTI report said, quoting food secretary Sudhanshu Pandey. CLICK HERE TO READ FULL REPORT

Among individual stocks, EID Parry (India) hit a 52-week high of Rs 247.75, up 4.5 per cent on the BSE today. In the past month, the stock has zoomed 63 per cent, as compared to 13.5 per cent rise in the S&P BSE Sensex.

For Q4FY20, the company has reported a healthy 30 per cent YoY jump in consolidated earnings before interest, tax, depreciation, and ammortisation (EBITDA) at Rs 639 crore for Q4FY20, as against Rs 490 crore in the corresponding quarter of the previous fiscal. EBITDA margin improved to 15.05 per cent from 13.44 per cent during the quarter.

On June 2, 2020, EID Parry had sold 5.85 million equity shares, representing 2 per cent stake, in its subsidiary, Coromandel International for Rs 368 crore. The company said proceeds from the sale will be utilised towards reduction of debt.

Triveni Engineering & Industries was locked in 5 per cent upper circuit for the third straight day at Rs 56.55 after reporting 73 per cent YoY rise in its consolidated net profit at Rs 137.59 crore in Q4FY20. Gross revenue was up 75 per cent at Rs 1,494 crore on YoY basis.

The company said sugar business had performed well during the quarter owing to stable sugar prices and overall higher volumes of sales.

Balrampur Chini Mills rose nearly 5 per cent to Rs 135 on the BSE today. The company's board of directors is scheduled to meet on Tuesday, June 23, to consider the financial results for the quarter and year ended 31st March, 2020. The board will also consider share buyback proposal.