The trigger came from better-than-expected fourth quarter results from Bajaj Hindusthan, Shree Renuka Sugars and Kothari Sugars, posting over a 100 per cent rise in net profit, while EID Parry, Oudh Sugar Mills and Upper Ganges Sugar turned around during the quarter.
Among sugar stocks, EID Parry, Dwarikesh Sugar, Upper Ganges Sugar and Oudh Sugar Mills gained over 23 per cent, while Rana Sugars, Sakthi Sugars and Renuka Sugars gained between 15 and 20 per cent.
Last Friday, volumes were considerably high, with 11.14 crore shares trading on BSE and NSE compared with 4.93 crore shares changing hands during the last three trading days.
The six sugar companies that have so far declared their results have posted net profit of Rs 149.45 crore during the quarter ended March 2008 compared with Rs 1.81 crore in the year-ago period. These companies posted sales growth of 33 per cent, the biggest in the last nine quarters.
According to a research report of Edelweiss, unfavourable weather in north India, higher cane diversion to alternative sweeteners and a lower yield on planted sugarcane may see a decline in sugar production in 2008-09 from an estimated 26 million tonnes to 21 million tonnes.