On March 29, the Sensex-Nifty closed with a gain, but many sugar stocks were under selling pressure. The sector has shown decent growth so far this calendar year. So far in 2022, there have been 6 such stocks in the sugar sector, which have shown a rise of more than 30 percent in 3 months. In these too, Ugar Sugar has proved to be a multibagger stock. Here in our analysis, we have included only those stocks whose market cap is more than Rs 500 crore.
Market experts say the government’s focus on adding ethanol to fuel is supporting sugar stocks. Let us take a look at these stocks.
Ugar Sugar Works Ltd | These stocks increased from Rs 30.10 on 31 December 2021 to Rs 75.60 on 29 March 2022. During this period, this stock has seen a gain of 151 percent.
Dhampur Sugar Mills Ltd | These stocks increased from Rs 307.05 on 31 December 2021 to Rs 532.70 on 29 March 2022. The stock has gained 73 per cent during this period.
Also read- Sugar stocks have made strong earnings so far, experts say that the enthusiasm will continue even further, know why?
Dwarikesh Sugar Industries Ltd. These stocks increased from Rs 71.40 on 31 December 2021 to Rs 121.20 on 29 March 2022. The stock has gained 70 per cent during this period.
Mawana Sugars Ltd | These stocks increased from Rs 78.95 on 31 December 2021 to Rs 131.75 on 29 March 2022. The stock has gained 67 per cent during this period.
Triveni Engineering & Industries Ltd , These stocks increased from Rs 221.20 on 31 December 2021 to Rs 312.20 on 29 March 2022. The stock has gained 41 per cent during this period.
How sugar stocks can move ahead
Vikram Cassatt of Prabhudas Lilladher says that India is a sugar surplus country and the government’s focus on ethanol blending into fuel is a big growth driver for the sector. Apart from this, the sugar sector has also got huge export orders, in which sugar stocks have also been seen in enthusiasm in recent times. Almost every company has made its capacity expansion plan influenced by the ethanol policy of the government. Meanwhile, due to the Russia-Ukraine war, sugar stocks have got tremendous support as India has emerged as a major supplier of sugar to West Asia, East Asia and South Asia due to this war. Sugarcane is being used in Brazil to produce ethanol in large quantities due to rising crude oil prices, boosting India’s sugar exports. Apart from this, due to the high volatility in freight rates, India has become more attractive for the supply of sugar to the countries of the Gulf region. Because Indian cargo ships can reach these countries even in a short period of 1 week to 10 days.
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