Ugar Sugar Works hit 5% upper circuit at Rs 30.55 at 14:35 IST on BSE, with the stock extending recent solid surge.
Meanwhile, the S&P BSE Sensex was up 208.74 points or 0.79% at 26,844.51.
On the BSE, 8,829 shares were traded on the counter so far as against the average daily volumes of 1.52 lakh shares in the past one quarter. The stock was locked at a high of Rs 30.55 so far during the day. The stock had hit a record high of Rs 73.10 on 1 August 2016 and a 52-week low of Rs 10.90 on 12 February 2016.
The stock had outperformed the market over the past one month till 4 January 2017, gaining 12.14% compared with Sensex's 1.53% gains. The stock had, however, underperformed the market in past one quarter, declining 35.33% as against Sensex's 6% decline.
The small-cap company has equity capital of Rs 11.25 crore. Face value per share is Re 1.
Shares of Ugar Sugar Works has surged 32.82% in eight sessions from a recent close of Rs 23 on 26 December 2016, to its current ruling price.
Sugar stocks had witnessed rally recently on hopes of an increase in mills' profitability, following indications of a debt recast by the Ministry of Finance. This would help mills generate profits in the next few quarters on elevated sugar price levels. Debt recast would further lower interest outgo for mills, resulting in an increase in their profits.
Meanwhile, domestic sugar consumption is reportedly likely to outpace production for the second successive year in sugar season ending September 2017, given the lower sugar production in the major states of Maharashtra and Karnataka. While this decline will be offset to some extent by increased sugar production from Uttar Pradesh.
Ugar Sugar Works reported net loss of Rs 25.88 crore in Q2 September 2016 compared with net profit of Rs 29.81 crore in Q2 September 2015. Net sales rose 32.3% to Rs 123.06 crore in Q2 September 2016 over Q2 September 2015.
Ugar Sugar Works is the flagship organization of the Shirgaokar Group of companies. The company has been involved in the manufacture of white crystal sugar for over 75 years.
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