Sugar stocks rally- Rajshree, Piccadilly, Dalmia Bharat, Dampure hit upper circuit; check share price outlook
时间:2024-06-29 02:49:10 阅读(143)
As the reports surface that the government may raise the export quota for sugar, sugar stocks rallied for the second consecutive session. Bajaj Hindusthan Sugar, Shree Renuka Sugars, Balrampur Chini Mills, Dalmia Bharat Sugar and Dhampur Sugar Mills are all gaining on the back of the update. Many analysts are positive about the sugar sector as a whole, especially since sugar production is expected to reach its highest volumes according to a report by Indian Sugar Mills Association.Sugar sector outlook
Certain sugar stocks such as Piccadily Sugar and Allied Industries, Rajshree Sugars & Chemicals, Dalmia Bharat Sugar and Industries and Dhampure Speciality Sugars rose and hit the 20% upper circuit in trade today, extending gains for the second session. Many stocks have gained considerably over the previous month and on-year, with companies such as Davangere Sugar Company and Ugar Sugar Works rising 315.5% and 255.9% on-year respectively.
The scrip has risen 3.8% intraday to touch the day’s high at Rs 408.9 before settling to trade at Rs 398.9, 1.1% higher. “H2FY23 (especially Q4FY23) will look very strong on account of seasonality. Moreover, FY24 will be a blockbuster year on the back of improved sugarcane crushing volume (yield normalisation and increase in area under sugarcane), and full ramp-up of distilleries. We maintain BUY on Balrampur Chini Mills with a September ’23 target price of Rs 465, basis 15x Sep’24 EPS,” said JM Financial on Friday.
EID Parry stock outlookEID Parry added 2% to its share price today, trading at Rs 609, after touching an intraday high 5% up compared to Friday’s closing price. “EID Parry (East India Distilleries Parry Limited), has many firsts to its credit, including the manufacturing of fertilizers for the first time in the Indian subcontinent. Technically the trend of stock is bullish and trading in a bullish channel. RSI also took a reversal from the 40-50 zone, indicating price has resumed its major trend again. Long term and short term investors should keep a bullish view on it as long as it sustains above 500 level. On the higher side. 640 and 720+ levels can be seen in it,” Rameshver Dongre, Research Analyst – Equity Research, CapitalVia Research.
Food Secretary Sanjeev Chopra said that India could consider allowing additional exports once local production is assessed in January, according to Reuters. The government revised sugar export quotes in November, allowing up to 6 million tonnes of sugar to be exported globally. “By allowing sugar exports, Government has also protected the interest of cane farmers and sugar mills as mills will be able to take benefits of favourable international sugar price scenario and achieve better prices of sugar so that cane dues of farmers in current sugar season 2022-23 may also be paid timely and working capital costs of mills may reduce due to optimum level of sugar stocks with them,” said Ministry of Consumer Affairs, Food & Public Distribution in a report filed last month.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
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