Analysts selective on sugar stocks as higher prices keeps outlook upbeat

Analysts expect lower output to keep sugar prices elevated at least for the next year, driving gains for the sector

Sugar prices are hovering near six-year highs, leaving a bad taste in Indian consumers' palates but sweetening the portfolios of investors in related stocks at Dalal Street. 

Shares of sugar manufacturers such as Piccadily Agro, DCM Shriram, Magadh Sugar, and Bajaj Hindustan have rallied up to a whopping 200 per cent so far in the financial year 2024 (FY24) as deficient monsoon rains in major sugarcane producer states like Maharashtra and Karnataka are expected to lead to a shortfall in sugar output ahead.

In comparison, the BSE Sensex has modestly gained 11 per cent during this period.

Analysts expect lower