In today’s trade, there is a strong rally in sugar stocks. Market experts say that due to the strong push from the government to ethanol blading, the earnings of Chinese companies will see an increase. Due to which the sugar stocks have seen strength today. Balrampur Chini Mills 7%, Dalmia Bharat Sugar and Industries 6%, Triveni Engineering 7%, EID Parry 4%, Shree Renuka Sugars 4.4%, Uttam Sugar Mills 9%, Avadh Sugar It gained 7%, Dhampur Sugar 7% and Dwarikesh Sugar 5.4%. In its recent report released on sugar companies, JM Financial has said that we remain bullish on the sugar sector. The government is focusing on giving a boost to the sugar company through its aggressive policies and is focusing on the policy of helping the weak. Given this, we believe that well-managed sugar companies can see good growth in earnings and cash flow. The report also said that ethanol prices are currently above petrol and alcohol import parity prices. Because the government’s target is on 2 goals. The goal is to divert surplus sugar to ethanol production, thereby reducing the subsidy burden and reducing carbon emissions. Along with this, the dependence on crude imports should also be reduced. Sugar industries will get the benefit of all this. IT Q3 Preview | There may be an increase in the earnings of the companies, the performance of the midcap may be better than the large cap In the month of October, the government had announced an incentive for sugar companies to give additional sugarcane product for ethanol production. So that the produced ethanol can be used for blending with petrol. The government is constantly focusing on the ethanol bleaching program, which is seeing an annual increase of 3-4 percent in ethanol prices. Along with this, there is a huge demand for ethanol from the oil companies, which will be seen to benefit the sugar companies. Oil marketing companies have contracted for 3.69 billion liters of ethanol for the current marketing year (December-November). According to the report of JM Financial, more contracts can be seen for 0.94 billion liters of ethanol in the next few weeks. Apart from this, due to low inventory, sugar prices are expected to increase in the domestic and foreign markets. The effect of which will be seen on sugar stocks. ,
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