Sugar stocks continue with their previous day gains as the benchmark indices recovered from 4-day straight sell-off. One reason giving the fillip to sugar stocks of late has been the decision around blending ethanol with fuel and currently oil price rise also supports gains in sugar stocks.
The stock of Mawana Sugars hit back to back 52-week high for yet another day today after gains to the tune of 7% intra-day. The 52-week high price hit today is Rs. 153 per share. On a YTD basis, the stock has gained 80%, while 1-year returns from the stock are 250%.
"The sugar stocks have remained in a structural uptrend forming higher peak and higher trough in the long-term chart," ICICI Securities has said in its report while recommending Balrampur chini mills. Balrampur Chini Mills also gained by 2% in intra-day trade.
Dhampur Sugar Mills also traded higher by over 1%.
The sugar sector in the country is seen to drive change to renewable energy. Remember, the centre's ethanol blending program has not only been advanced with respect to the timeline but also has increased it to 20%
Given the demand as well as international pricing, sugar prices are expected to remain on the higher side, thus a booster for stocks within the space.