Sugar Stocks Continue Uptrend on Healthy Outlook. Can the Rally Sustain? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • May 4, 2021 - Sugar Stocks Continue Uptrend on Healthy Outlook. Can the Rally Sustain?

Sugar Stocks Continue Uptrend on Healthy Outlook. Can the Rally Sustain?

May 4, 2021

In an otherwise weak market, sugar stocks rallied up to 20% yesterday on strong earnings outlook and optimism over the government's policy on ethanol blending.

Most of the sugar stocks hit the upper circuit limit on Monday with shares of E.I.D. Parry and Balrampur Chini hitting their 52-week highs.


Company Name % Gain
Bajaj Hind. Sugar 19.9
KM Sugar 19.9
Dhampur Sugar 19.6
Dwarikesh Sugar 19.6
Avadh Sugar 18.9
Dalmia Bharat Sugar 17.3
E.I.D. Parry 16.7
Balrampur Chini 16.3
Vishwaraj Sugar Ind 11.3
Shree Renuka Sugars 9.9

Factors Contributing to the Rally

India's sugar industry is set to benefit from global and domestic factors.

Lower output from countries like Brazil, Thailand and the EU would keep supplies tight, enabling India to increase exports.

Harvest trends are pointing at lower sugarcane yield this year in Brazil and other key sugar-producing countries are not expected to produce higher output.

--- Advertisement ---
The 20 Greatest Outlier Stocks

There's a very tiny minority of listed companies that have the potential to be the greatest wealth creators for Indian investors.

Having studied the Indian stock markets for 20 years now, our top analyst and Co-Head of Research, Tanushree Banerjee has zeroed in on the ultimate list of 20 such stocks.

On June 21 at 5pm, Tanushree will be revealing the full details on these stocks for Indian investors.

You Register your FREE spot for her Forever Stocks event with this link.
------------------------------

According to reports, sugar output for April in Brazil was down 35% year-on-year (YoY).

A Reuters report quoting industry group Unica said: "Brazil's center-south sugar output was only 624,000 tonnes in the first half of April versus 971,000 tonnes in a similar period last year. Cane crush was seen at 15.6 m tonnes, 30% less than in 2020."

This bodes well for India as lower output from these countries will keep supply tight and global prices firm.

On the domestic front, favorable policies, rising ethanol demand (blending target of 20% by CY25 from 8% currently), aggressive ethanol capacity addition would drive an earnings by going forward.

The government's steps to ensure sugarcane farmers are paid without significant arrears has also boosted investor sentiment.

So far this year, Indian sugar mills have exported 2.49 m tonnes of sugar. An additional 3.03 m tonnes of sugar is in transit, according to trade body AISTA (All India Sugar Trade Association).

Sugar Prices on the Rise

Domestic sugar prices have increased 7-8% in last one month mainly due to high summer demand & crushing season getting over reflecting no surprises on sugar production front.

Media reports state that many analysts believe domestic sugar prices would remain above Rs 34/kg given aggressive exports & diversion of sugarcane towards ethanol production.

Similarly, global sugar prices are also on rise and have risen as much as 15% in the past two months.

--- Advertisement ---
WATCH: FULL Replay of Our Urgent Broadcast

The full replay of our urgent broadcast on India's Revival is available for a limited time now.

In case you missed watching our broadcast LIVE...

You can see all the important highlights from our broadcast in this replay.

Please note that we may take this replay off the internet any minute.

So it is highly recommended you watch it immediately.

Click Here to Watch the Replay NOW
------------------------------

Equitymaster's Technical View on Sugar Stocks...

We reached out to Brijesh Bhatia, Research Analyst at Equitymaster, and Editor of the premium monthly recommendation service Fast Profits Report, for his technical view on sugar stocks.

As per Brijesh, sugar stocks are looking positive. As per his charts, they are breaking out and could potentially deliver huge returns.

Brijesh believes that sugar still has a huge upside when it comes to an investment for next 12-15 months. As per him, in the next 12-15 months, you might make a big wealth creation.

In fact, Brijesh has recorded a video explaining why sugar stocks are ready to soar higher.

Check out this video to find out more.

How Sugar Stocks are Performing Today

Sugar stocks are trading on a mixed note today as investors booked profit in some stocks after the recent run-up.

Shares of Triveni Engineering and Dalmia Bharat Sugar fell 5% while Uttam Sugar plunged 10%.

Bajaj Hind. Sugar rose over 6% while Sakhti Sugars surged over 9%.

Sugar stocks have been trending higher in the recent months, amid expectations of a rise in exports from India amid lower output in Brazil and a consequent surge in global prices.

BREAKING: It's Good Time to Invest in Gold, but Just Don't Go Blindfolded

So far this year, shares of Dalmia Bharat Sugar & Industries have surged 108%, while those of Triveni Engineering have climbed 98%.

Balrampur Chini has advanced over 85%. Other stocks including Dhampur Sugar Mills, DCM Shriram Industries, Bannari Amman Sugars, and Bajaj Hindustan Sugar have also seen their share prices increase significantly.

All sugar stocks are in the green in 2021.


We will keep you posted on the latest developments from this space.

Stay tuned!

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Equitymaster requests your view! Post a comment on "Sugar Stocks Continue Uptrend on Healthy Outlook. Can the Rally Sustain?". Click here!

  

More Views on News

Sugar Stocks on a Roll: Shree Renuka Sugars & Dalmia Bharat Sugar up 45% in a Week (Views On News)

Jun 10, 2021

We discuss the recent run-up in sugar stocks and reasons behind the rally.

BALRAMPUR CHINI 2019-20 Annual Report Analysis (Annual Result Update)

Oct 20, 2020 | Updated on Oct 20, 2020

Here's an analysis of the annual report of BALRAMPUR CHINI for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of BALRAMPUR CHINI. Also includes updates on the valuation of BALRAMPUR CHINI.

Why Did Sugar Stocks Surge Today? (Views On News)

Jun 3, 2021

A look into the factors contributing to the rally in sugar stocks.

BALRAMPUR CHINI Announces Quarterly Results (3QFY20); Net Profit Down 41.8% (Quarterly Result Update)

Feb 12, 2020 | Updated on Feb 12, 2020

For the quarter ended December 2019, BALRAMPUR CHINI has posted a net profit of Rs 700 m (down 41.8% YoY). Sales on the other hand came in at Rs 12 bn (up 27.1% YoY). Read on for a complete analysis of BALRAMPUR CHINI's quarterly results.

BALRAMPUR CHINI Announces Quarterly Results (1QFY20); Net Profit Up 45.0% (Quarterly Result Update)

Aug 8, 2019 | Updated on Aug 8, 2019

For the quarter ended June 2019, BALRAMPUR CHINI has posted a net profit of Rs 1 bn (up 45.0% YoY). Sales on the other hand came in at Rs 9 bn (down 5.4% YoY). Read on for a complete analysis of BALRAMPUR CHINI's quarterly results.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

Don't Break These 5 Intraday Trading Rules (Fast Profits Daily)

Jun 1, 2021

To become a better intraday trader, follow these rules religiously.

Is the RBI's 'Bubble Talk' Signalling a Market Crash? (Profit Hunter)

May 31, 2021

Is the Indian central bank correct in warning you about a market crash?

Rs 2 Trillion Stimulus Coming to a Stock Market Near You (Profit Hunter)

Jun 2, 2021

Get ready to profit from a massive stimulus that you've never seen before.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

BALRAMPUR CHINI SHARE PRICE


Jun 11, 2021 (Close)

TRACK BALRAMPUR CHINI

  • Track your investment in BALRAMPUR CHINI with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON BALRAMPUR CHINI

BALRAMPUR CHINI 8-QTR ANALYSIS

COMPARE BALRAMPUR CHINI WITH

MARKET STATS