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Sugar stocks extend fall on concerns of record output

Balrampur Chini Mills, Avadh Sugar & Energy and Dalmia Bharat Sugar and Industries were down 10% on the BSE.

Conditions for sugar mills to avail subsidy eased
SI Reporter Mumbai
Last Updated : Mar 08 2018 | 1:40 PM IST
Shares of sugar companies continue to trade lower for the fifth straight session, falling by up to 30%, on concerns of higher production which may pull down the prices of raw sugar.

Balrampur Chini Mills, Avadh Sugar & Energy and Dalmia Bharat Sugar and Industries were down 10% on the BSE. These stocks tanked in the range of 28% to 30% in past five trading sessions. Besides these three, as many as 20 sugar stocks were trading at their multi-months lows.

The Indian Sugar Mills Association (Isma) increased its earlier estimates for the country's sugar production by 45% to 29.5 million tonnes (mt) for 2017-18, after major producers Maharashtra and North Karnataka reported substantially higher yields per hectare. CLICK HERE TO READ FULL REPORT

Increased sugar production outlook in India is likely to add to concerns of excess global supplies and could pull down the prices of raw sugar.

Total 35 sugar companies posted a sharp 93% year on year drop in their aggregate net profit at Rs 58 crore in December quarter (Q3FY18). These companies had a combined net profit of Rs 851 crore in year ago period.

The performance of sugar segment was subdued owing to pressure on sugar realizations on account of greater than expected sugar production in the current sugar season, Vivek Saraogi, Managing Director, Balrampur Chini Mills said while announcing Q3FY18 results on February 8, 2018.

Over the past few years, both the Central and State Governments have taken several timely initiatives to protect interest of cane farmers, improve the liquidity of sugar mills and facilitate payment of cane dues to farmers. We are hopeful that the government would continue to act proactively to address industry concerns even in the current environment, he added.

COMPANY LATEST 52 WK LOW PREV LOW PREV DATE
BAJAJ HINDUSTHAN 10.80 10.65 11.00 07-Mar-18
BALRAMPUR CHINI 87.20 84.65 93.20 07-Mar-18
BANNARI AMM.SUG. 1600.25 1600.25 1650.00 07-Mar-18
DALMIA BHARAT 78.25 77.00 85.35 07-Mar-18
DCM SHRIRAM INDS 212.50 201.50 211.10 07-Mar-18
DHAMPUR SUGAR 145.80 144.05 155.00 07-Mar-18
DHARANI SUGARS 17.55 16.65 17.80 07-Mar-18
DWARIKESH SUGAR 27.20 26.65 28.80 07-Mar-18
INDIAN SUCROSE 27.60 27.55 28.95 07-Mar-18
KCP SUGAR &INDS. 24.70 22.85 24.20 07-Mar-18
KM SUGAR MILLS 11.99 11.80 12.89 07-Mar-18
MAWANA SUGARS 45.50 45.00 48.35 07-Mar-18
RAJSHREE SUGARS 30.55 30.10 31.70 07-Mar-18
RANA SUGARS 4.87 4.80 5.10 07-Mar-18
SAKTHI SUGARS 17.00 16.40 17.05 07-Mar-18
SIR SHADI LAL 45.00 44.00 44.10 07-Mar-18
THIRU AROOR. SU. 33.15 33.10 33.15 07-Mar-18
TRIVEN.ENGG.IND. 47.20 46.15 50.00 07-Mar-18
UGAR SUGAR WORKS 16.50 15.60 17.00 07-Mar-18
UTTAM SUG.MILLS 89.00 88.15 90.40 03-Mar-17

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