The sugar stocks have felt the heat after the budget. Sector stocks have been on decline for a few months now. The budget has not given enough fillip for the sugar shares to react positively.
The only silver lining has been the indication of lower interest rates. This is important for the industry as the industry has high working capital needs. In fact even the reduction in surcharge on corporate tax will benefit the companies.
The sugar companies set to benefit from both the lower surcharge and lower interst regime would be Baja Hindustan Ltd., Balrampur Chini Mills, Bannari Amman Sugars Ltd. and Thiru Arooran Sugars among other listed stocks.
The only stock which has appreciated is Bajaj Hindustan which has moved up from Rs 55.50 to Rs 72 during December 2 to March 5. The stock price of Rajshree Sugar has fallen from Rs 11.50 on December 2 to today
