SWEET SOARING! Sugar companies share prices surge up to 150% in June - Here is why
The shares of the sugar companies have been on a roll ever since the government-mandated 20 per cent ethanol blending in fuel by 2025 against the current blending of 7.79 per cent. The majority of the sugar stocks hit a new 52-week high today, surging up to 150 per cent alone in the month of June.
The shares of the sugar companies have been on a roll ever since the government-mandated 20 per cent ethanol blending in fuel by 2025 against the current blending of 7.79 per cent. The majority of the sugar stocks hit a new 52-week high today, surging up to 150 per cent alone in the month of June.
Surging most in the list, Shree Renuka Sugar has almost given 150 per cent returns in the month of June to Rs 37.5 per share from Rs 15.1 apiece, followed by Uttam Sugar Mills, which surged almost 100 per cent in June to Rs 287 per share from Rs 144 apiece.
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Individual basis, Avadh Sugar & Energy surged over 75 per cent, Dalmia Bharat Sugar over 53 per cent, Dwarikesh Sugar Industries around 50 per cent Andhra Sugar over 43 per cent, while Balrampur Chini Mills and Dhampur Sugar Mills surged around 22 per cent alone in the month of June.
All of these sugar stocks have been surging today between four to five per cent, except Uttam Sugar Mills, which jumped over 10 per cent to Rs 287 per share and Balrampur Chini surged over two per cent to 370 per share on the BS intraday trade on Tuesday.
Individually, Shree Renuka Sugars shares were locked in the upper circuit of 5 per cent for the seventh straight trading day, at Rs 37.5, hitting an over eight-year high, after the company said its board has approved capacity expansion of ethanol production.
The stock was trading at its highest level since January 2013 and has zoomed 148 per cent so far in June, as compared to a 1.6 per cent gain in the S&P BSE Sensex.
Shree Renuka Sugars said in exchange filing said, "The board of directors in their meeting held on February 9, 2021, had approved capacity expansion of ethanol production from 720 Kilo Litre Per Day (KLPD) to 970 KLPD. Considering the huge untapped demand for ethanol due to the policies of the Government of India on ethanol blending, the Board of Directors of the Company, at its meeting held today i.e. June 25, 2021, inter‐alia, approved further capacity expansion for ethanol production from 970 KLPD to 1400 KLPD,"
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