Business Standard

Sugar shares dip on profit booking

Dwarikesh Sugar, Ugar Sugar Works, Oudh Sugar Mills and Upper Ganges are down more than 5% each

Sugar shares dip on profit booking

SI Reporter Mumbai
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.

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  

 
 

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First Published: Jun 16 2016 | 12:10 PM IST

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