Sugar inventories jumped on the back of capacity expansion, the ethanol blending program and strong third quarter results. Stocks such as Balrampur chini, Dhampur Sugar, Dwarikesh sugar, Mawana Sugars and Uttam Sugars have risen significantly over the past month.
One stock in this sector that has stood out is Ugar Sugar Works Ltd. Shares of Ugar Sugar Works have touched new highs daily and have traded at new 52-week highs for three consecutive sessions now.
At 1:50 p.m. Wednesday, shares of Ugar Sugar Works jumped 9% or Rs 4 to trade at Rs 48.35 per share on BSE.
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This sugar stock hit the BSE 52-week high of 49.15 rupees per share on Wednesday, while the stock traded at new highs of 48.45 rupees and 41.40 rupees per share. February 8 and 9 respectively.
After trading at 33.60 rupees per share on the National Stock Exchange (NSE) on February 3, shares of Ugar Sugar Works have gained 45% to trade at 49.15 rupees per share in just five trading sessions. Wednesday.
As of Feb. 9, shares gained 68% in 3 months, 67% in six months and 207% in a year, technical details of the sugar stock showed.
Earlier, ICICI Securities recommended Dalmia Bharat Sugar and Avadh Sugar for a hike of up to 47% on the base price of Rs 453 and Rs 660 respectively.
The brokerage was also bullish on Balrampur Chini Mills and Dwarikesh Sugar and sees a 25% rise in these shares at Monday’s closing price of Rs 444.15 and Rs 101.40. As of 1:55 p.m., Balrampur Chini shares were trading with a gain of Rs 4.65 or more by 1.09% to Rs 431.95 on BSE on Wednesday. Dwarikesh Sugar shares traded at Rs 97.40, down 2.36%, on Wednesday.