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A sugar high for these 6 stocks, surge over 60% in a month
Sugar stocks are in a sweet spot as prices have gone up sharply in the last few weeks and are expected to stay high as supply remains tight in global markets and India pushes for ethanol blending.
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Sugar prices have been rising sharply in the last few weeks and the sector is likely to benefit from a tight demand-supply situation globally and a push for higher ethanol blending in India. The rise in price has given a boost to sugar stocks. All 12 companies with a market cap of more than Rs 500 crore have gained at least 20 percent over the last one month. Six of these have gained more than 60 percent during the period.
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![Sector outlook: Brazil and Thailand, the two largest sugar exporters in the world, are expected to see a 7-8 million metric tons (MMT) drop in production each when compared to last year due to dry weather, Motilal Oswal has said in a research report. This would result in higher opportunities for Indian exporters as the surplus inventory for the current season is expected to be around 9.5 MMT. If global prices go up, a higher amount of sugar expected to be utilised for conversion to ethanol will lead to a further increase in prices. The sugar industry is well poised to benefit from both global and domestic factors. “The tight global demand-supply situation, favourable policies, push for higher ethanol blending in India and higher ethanol capacity addition will keep the inventory under control and prices firm," the report says.](https://images.moneycontrol.com/static-mcnews/2019/04/sugar.jpg "Sector outlook: Brazil and Thailand, the two largest sugar exporters in the world, are expected to see a 7-8 million metric tons (MMT) drop in production each when compared to last year due to dry weather, Motilal Oswal has said in a research report. This would result in higher opportunities for Indian exporters as the surplus inventory for the current season is expected to be around 9.5 MMT. If global prices go up, a higher amount of sugar expected to be utilised for conversion to ethanol will lead to a further increase in prices. The sugar industry is well poised to benefit from both global and domestic factors. “The tight global demand-supply situation, favourable policies, push for higher ethanol blending in India and higher ethanol capacity addition will keep the inventory under control and prices firm," the report says.")
Sector outlook: Brazil and Thailand, the two largest sugar exporters in the world, are expected to see a 7-8 million metric tons (MMT) drop in production each when compared to last year due to dry weather, Motilal Oswal has said in a research report. This would result in higher opportunities for Indian exporters as the surplus inventory for the current season is expected to be around 9.5 MMT. If global prices go up, a higher amount of sugar expected to be utilised for conversion to ethanol will lead to a further increase in prices. The sugar industry is well poised to benefit from both global and domestic factors. “The tight global demand-supply situation, favourable policies, push for higher ethanol blending in India and higher ethanol capacity addition will keep the inventory under control and prices firm," the report says.
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Bajaj Hindusthan Sugar Ltd. | The stock has risen 86 percent from Rs 6.67 on April 9, 2020 to Rs 12.39 on May 11, 2021.
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Dhampur Sugar Mills Ltd. | The stock has risen 72 percent from Rs 193.85 on April 9, 2020 to Rs 332.95 on May 11, 2021.
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Dwarikesh Sugar Industries Ltd. | The stock has risen 66 percent from Rs 33.65 on April 9, 2020 to Rs 55.70 on May 11, 2021.
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Triveni Engineering & Industries Ltd. | The stock has risen 65 percent from Rs 92.50 on April 9, 2020 to Rs 152.20 on May 11, 2021.
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Avadh Sugar & Energy Ltd. | The stock has risen 63 percent from Rs 204.75 on April 9, 2020 to Rs 334.55 on May 11, 2021.
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DCM Shriram Industries Ltd. | The stock has risen 62 percent from Rs 190.20 on April 9, 2020 to Rs 308.65 on May 11, 2021.
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Dalmia Bharat Sugar & Industries Ltd. | The stock has risen 58 percent from Rs 203.45 on April 9, 2020 to Rs 321.60 on May 11, 2021.
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Uttam Sugar Mills Ltd. | The stock has risen 53 percent from Rs 100.45 on April 9, 2020 to Rs 153.75 on May 11, 2021.
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Balrampur Chini Mills Ltd. | The stock has risen 39 percent from Rs 234.00 on April 9, 2020 to Rs 326.15 on May 11, 2021.
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E.I.D. Parry (India) Ltd. | The stock has risen 30 percent from Rs 332.95 on April 9, 2020 to Rs 433.90 on May 11, 2021.
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Shree Renuka Sugars Ltd. | The stock has risen 26 percent from Rs 10.70 on April 9, 2020 to Rs 13.48 on May 11, 2021.
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Bannari Amman Sugars Ltd. | The stock has risen 19.50 percent from Rs 1696.05 on April 9, 2020 to Rs 2026.75 on May 11, 2021.
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