From Balrampur Chini to Shree Renuka, sugar stock may remain under pressure

Share prices may remain under pressure as recent measures are unlikely to provide respite on realisation

As sugar prices continue trending down with estimated production for sugar year (SY) 2017-18 projected to surpass consumption, stocks of sugar companies are erasing most of their phenomenal gains recorded during the 27-month bull-run of August 2015 to December 2017. Balrampur Chini, Shree Renuka Sugars and Bajaj Hindusthan have lost between 30 per cent and 60 per cent of their market value in the last few months. Experts said a further downside could not be ruled out, as both the current and the next sugar year could see a production surplus, keeping realisation under stress.

While the production estimates have already