 "Sugar shares dip on profit booking")
Shares of sugar companies have slumped by up to 18% in an intra-day trade on account of profit booking.
At 12:03 AM, Dwarikesh Sugar Industries (down 11% at Rs 236), Ugar Sugar Works (10% at Rs 52), Oudh Sugar Mills (9% at Rs 139), Upper Ganges Sugar & Industries (7% at Rs 384), Uttam Sugar Mills (7% at Rs 87) and Simbhaloi Sugars (6% at Rs 52) are among few sugar stocks that are down more than 5% each on the BSE as compared to 1.4% down in S&P BSE Sensex.
Most of the sugar stocks touched their multi-year highs and appreciated more than 30% in the month of June till Wednesday, as the outlook on profitability growth got further boost.
While international sugar prices continue their northward trajectory, realisations within India are also improving, with the demand-supply equation turning favourable for companies, the Business Standard report suggests. CLICK HERE TO READ FULL REPORT.
As far as the medium- to long-term outlook is considered, in ICRA’s view, the long-term prices and profitability of Indian sugar companies will remain highly cyclical and dependent on domestic and international supply-demand trends.
While sugar prices have improved, the sugar mills’ liquidity is likely to remain under some pressure in the near term as they have to start making debt repayments against the soft loans availed during 2014 and 2015 from this year, which implies additional cash outgo for them, ICRA said in Apri 2016 report.
At 12:03 AM, Dwarikesh Sugar Industries (down 11% at Rs 236), Ugar Sugar Works (10% at Rs 52), Oudh Sugar Mills (9% at Rs 139), Upper Ganges Sugar & Industries (7% at Rs 384), Uttam Sugar Mills (7% at Rs 87) and Simbhaloi Sugars (6% at Rs 52) are among few sugar stocks that are down more than 5% each on the BSE as compared to 1.4% down in S&P BSE Sensex.
Most of the sugar stocks touched their multi-year highs and appreciated more than 30% in the month of June till Wednesday, as the outlook on profitability growth got further boost.
While international sugar prices continue their northward trajectory, realisations within India are also improving, with the demand-supply equation turning favourable for companies, the Business Standard report suggests. CLICK HERE TO READ FULL REPORT.
As far as the medium- to long-term outlook is considered, in ICRA’s view, the long-term prices and profitability of Indian sugar companies will remain highly cyclical and dependent on domestic and international supply-demand trends.
While sugar prices have improved, the sugar mills’ liquidity is likely to remain under some pressure in the near term as they have to start making debt repayments against the soft loans availed during 2014 and 2015 from this year, which implies additional cash outgo for them, ICRA said in Apri 2016 report.
| Company | LATEST | 52 WK HIGH | % chg |
| UGAR SUGAR WORKS | 52.35 | 63.50 | -17.6 |
| SAKTHI SUGARS | 47.70 | 56.00 | -14.8 |
| SIMBHAOLI SUGAR | 52.70 | 61.20 | -13.9 |
| OUDH SUGAR MILLS | 139.20 | 160.95 | -13.5 |
| UPPER GANG. SUG. | 382.10 | 438.85 | -12.9 |
| UTTAM SUG.MILLS | 85.40 | 98.00 | -12.9 |
| DALMIA BHARAT | 123.55 | 141.40 | -12.6 |
| KESAR ENTERPRISE | 63.00 | 71.85 | -12.3 |
| KCP SUGAR &INDS. | 40.00 | 44.60 | -10.3 |
| DHARANI SUGARS | 64.20 | 71.40 | -10.1 |
| List of stocks hit 52-week high in intra-day trade | |||
| Latest price on BSE in Rs at 12:00 PM | |||