Systematix remains positive on the sugar sector
Systematix Institutional Equities maintains a bullish outlook on the sugar sector, citing expected government support for ethanol post-elections. The firm issued buy ratings for Balrampur Chini (₹501), Triveni Engineering (₹421), Dwarikesh Sugars (₹96), and Praj Industries (₹607). Systematix foresees relaxed restrictions on juice and B-Heavy molasses use, boosting ethanol production. With a revised surplus of 8.85 million tonnes by ISMA and a favorable monsoon forecast, they predict increased sugarcane cultivation and ethanol output.
A leading brokerage firm, Systematix Institutional Equities, maintains a bullish view on the sugar sector, anticipating supportive government policies regarding ethanol production and pricing after the elections.
The brokerage issued buy ratings for several sugar companies: Balrampur Chini (target price: ₹501), Triveni Engineering (target price: ₹421), Dwarikesh Sugars (target price: ₹96), and Praj Industries (target price: ₹607).
Systematix believes the government remains committed to the 20% blending target, viewing the ethanol policy change as temporary. With a revised sugar surplus estimate of 8.85 million tonnes by ISMA, they expect relaxed juice and B-Heavy molasses usage restrictions in the upcoming season.
The brokerage anticipates increased cane diversion towards ethanol production, potentially exceeding initial FY25 ethanol volume projections. Additionally, a favorable monsoon forecast could lead to a boost in sugarcane cultivation.
Source Link : https://www.chinimandi.com/systematix-remains-positive-on-the-sugar-sector/
