Sugar yet to recover its sweetness

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Sugar yet to recover its sweetness

It seems that worst is not yet over for the sugar sector and the stocks are trading either at their all time low or at least 52 week low.

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Bajaj Hind BSE | NSE 31/05/12 Are Mutual Funds betting on Bajaj Hind? Other Stocks in this news DCM Shriram Industries | Dhampur Sugar Mills | Sakthi Sugars |

It seems that worst is not yet over for the sugar sector and the stocks are trading either at their all time low or at least 52 week low. In the international markets also, sugar prices have been under going severe bearish phase and speculators boosted their net short, or bearish positions in NewYork raw sugar futures by 65% for the week ended August 21 as the prices hit two month lows, future transaction released on Friday showed.

A study of leading sugar companies shows that that they have performed abysmally in terms of their annual returns. Bajaj Hindustan , sugar heavyweight was trading at Rs 124.10 and its 52-week low was at Rs 115.55. On annualized basis, it has given negative return of nearly 62% and the stock price has depreciated by 21% in last one month.

Other sugar stalwart's like Sakthi Sugars , Dhampur Sugar and DCM Shriram Inds have also lost to the tune of 55% or above in last one year. Sakthi Sugars was trading at 61.4 and has given up over Rs 82 in last one year or 57.44%. Its 52-week low was at Rs 59.25.  

Out of sugar pack, only Triveni Engineering was little resistant to the fall in prices, but still fell by 21% in one year. However, on one month and six-month basis, it has given positive returns. Triveni was quoting at Rs 61.75.