Shares of sugar companies were in demand and rallied up to 18 per cent on the BSE in Tuesday’s intra-day trade on strong outlook.
Among the individual stocks, Mawana Sugars zoomed 18 per cent to hit a 52-week high of Rs 140.55, surpassed its previous high of Rs 128.90 touched on February 17, 2022. Dwarikesh Sugar Mills surged 11 per cent to Rs 106.80 and soared 6 per cent to Rs 434.35. In the process, these two stocks also hit their respective record highs in intra-day trade today.
“Based on the opportunities arising from ethanol and bioenergy, the sugar sector appears to be powering forward on a sustainable growth path (25 per cent CAGR), which would drive a shift in how it is perceived and eventually spur its re-rating,” analyst at Systematix Shares and Stocks (India) said in its sugar sector report.
Dwarikesh sugar jumped more than 7% to trade on new high of Rs 106.80 a share. Balrampur Chini Mills too witnessed spurt in volume as the share gained nearly 2% to Rs day’s high of Rs 455.80, while Dalmia Bharat gained nearly 3% to trade on day’s high of Rs 440.
Brokerages are of the view that sugar industry is on the cusp of a mega transformation and emerged as a potent driver of clean energy, driving India’s shift to renewable energy faster. The government has not only advanced the ethanol blending program but also has raised it to 20 per cent.