Decent upside in select sugar stocks as business prospects turn sweeter
Analysts see 15-20 per cent upside in companies like Balrampur Chini, Dhampur, Triveni and EID
Sugar prices could spike globally due to supply uncertainties in India and China. Prices in India have risen appreciably over the past month or so, and global prices are already at multi-year highs despite hopes of strong production in Brazil.
Domestic production is estimated to fall this season from the earlier expectation of 35.5 million tonnes (MT) to around 33 MT due to lower yields and recovery rates, particularly in Maharashtra and Karnataka which have been hit by unseasonal rains and also in Uttar Pradesh (UP).
Given domestic consumption is of the order of 27.5 MT and exports or committed exports of 6 MT, the inventory could run low. Global sugar prices have rallied by over 12 per cent and domestic prices too have risen about 7- 8 per cent..
Recommended for you
