Sugar stocks in a sweet spot; Dwarikesh, Shree Renuka surge over 12%
Avadh Sugar & Energy, Uttam Sugar Mills, Dhampur Sugar Mills and EID Parry were up in the range of 5 per cent to 8 per cent
 "Sugar stocks in a sweet spot; Dwarikesh, Shree Renuka surge over 12%")
premium
Shares of sugar companies continued to advance and rallied up to 17 per cent on the BSE on Wednesday on expectations of earnings improvement as lower cane crushing, and, subsequent decline in sugar production.
Dwarikesh Sugar Industries, Shree Renuka Sugars, Magadh Sugar & Energy, Rajshree Sugars & Chemicals and Dalmia Bharat Sugar and Industries rallied in the range of 10 per cent to 17 per cent.
Avadh Sugar & Energy, Uttam Sugar Mills, Dhampur Sugar Mills and EID Parry were up in the range of 5 per cent to 8 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.19 per cent at 41,331 points at 02:14 pm.
Among individual stocks, Dwarikesh Sugar Industries soared 15 per cent to Rs 38.25, surging 23 per cent in the past two days on the back of an over five-fold jump in trading volumes. A combined 9.8 million shares changed hands on the counter on the NSE and BSE till 02:19 pm.
Indian Sugar Mills Association (ISMA) in its latest press release said all- India sugar production is down 35 per cent year-on- year (YoY) at 4.58 million tonne as on 15 December. The industry body has projected this year’s sugar output at 26.0-26.5 million tonne, which is lower by 7.0 million tonne YoY.
Shares of Balrampur Chini Mills hit an over 13-year high today. The stock was up 3 per cent at Rs 188, its highest level since May 2006 on the BSE.
“Sugar production in the upcoming season is now estimated to decline due to lower cane acreage in some parts of the country. So while the sugar inventory in India remains high, the demand-supply scenario is expected to be more balanced going forward. This combined with various initiatives such as incentives on exports recently announced will lead to an overall improved operating environment in the coming quarters,” the management of Balrampur Chini Mills said while announcing Q2 results on November 11, 2019.
"With regards to exports, millers have signed contracts for about 2.0 million tonne of sugar to date and another 3.0 million tonne are likely in the upcoming months. Thus, lower cane production, higher diversion to ethanol and a pickup in exports should lead to lower inventory levels in India by the end of the season", analysts at Elara Capital said in a sector update.
Dwarikesh Sugar Industries, Shree Renuka Sugars, Magadh Sugar & Energy, Rajshree Sugars & Chemicals and Dalmia Bharat Sugar and Industries rallied in the range of 10 per cent to 17 per cent.
Avadh Sugar & Energy, Uttam Sugar Mills, Dhampur Sugar Mills and EID Parry were up in the range of 5 per cent to 8 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.19 per cent at 41,331 points at 02:14 pm.
Among individual stocks, Dwarikesh Sugar Industries soared 15 per cent to Rs 38.25, surging 23 per cent in the past two days on the back of an over five-fold jump in trading volumes. A combined 9.8 million shares changed hands on the counter on the NSE and BSE till 02:19 pm.
Indian Sugar Mills Association (ISMA) in its latest press release said all- India sugar production is down 35 per cent year-on- year (YoY) at 4.58 million tonne as on 15 December. The industry body has projected this year’s sugar output at 26.0-26.5 million tonne, which is lower by 7.0 million tonne YoY.
Shares of Balrampur Chini Mills hit an over 13-year high today. The stock was up 3 per cent at Rs 188, its highest level since May 2006 on the BSE.
“Sugar production in the upcoming season is now estimated to decline due to lower cane acreage in some parts of the country. So while the sugar inventory in India remains high, the demand-supply scenario is expected to be more balanced going forward. This combined with various initiatives such as incentives on exports recently announced will lead to an overall improved operating environment in the coming quarters,” the management of Balrampur Chini Mills said while announcing Q2 results on November 11, 2019.
"With regards to exports, millers have signed contracts for about 2.0 million tonne of sugar to date and another 3.0 million tonne are likely in the upcoming months. Thus, lower cane production, higher diversion to ethanol and a pickup in exports should lead to lower inventory levels in India by the end of the season", analysts at Elara Capital said in a sector update.
| COMPANY | LATEST | 1-WEEK BEFORE | GAIN(%) |
| DWARIKESH SUGAR | 37.45 | 27.25 | 37.4 |
| DALMIA BHARAT | 116.95 | 86.50 | 35.2 |
| KM SUGAR MILLS | 7.98 | 6.37 | 25.3 |
| SH.RENUKA SUGAR | 9.33 | 7.58 | 23.1 |
| AVADH SUGAR | 302.00 | 250.45 | 20.6 |
| RAJSHREE SUGARS | 21.05 | 17.50 | 20.3 |
| SIR SHADI LAL | 33.60 | 28.25 | 18.9 |
| MAWANA SUGARS | 37.95 | 31.95 | 18.8 |
| UTTAM SUG.MILLS | 115.65 | 97.60 | 18.5 |
| MAGADH SUGAR | 117.45 | 99.20 | 18.4 |
| GAYATRI SUGARS | 0.92 | 0.78 | 18.0 |
| KCP SUGAR &INDS. | 15.03 | 12.79 | 17.5 |
| SAKTHI SUGARS | 9.75 | 8.30 | 17.5 |
| BAJAJ HINDUSTHAN | 7.29 | 6.21 | 17.4 |
| DCM SHRIRAM INDS | 172.00 | 148.15 | 16.1 |
| DHAMPUR SUGAR | 240.50 | 208.85 | 15.2 |
| TRIVEN.ENGG.IND. | 73.20 | 65.10 | 12.4 |
| INDIAN SUCROSE | 17.85 | 16.00 | 11.6 |
| SIMBHAOLI SUGAR | 6.66 | 6.00 | 11.0 |
| UGAR SUGAR WORKS | 14.14 | 12.78 | 10.6 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%