Rising Sugar Prices Push Sugar Stocks Up by Up to 32% in a Month
The rise in sugar prices is having a positive impact on sugar company stocks. Among the 20 largest listed sugar companies in the country by revenue, shares of 18 companies gained between 1.25% and 32.65% over the past month.
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The rise in sugar prices is beginning to reflect in the share prices of sugar-producing companies as well. An analysis of the one-month share price performance of the country’s 20 largest listed sugar companies by revenue shows that shares of only two companies declined, while 18 recorded gains. The increase ranged from 1.25% to 32.65%.
According to data available on the National Stock Exchange (NSE), Avadh Sugar & Energy recorded the highest gain among the top 20 sugar companies. Its share price increased 32.65% over the past month. Among the five companies with the highest gains, Ugar Sugar Works rose 27.7%, Dalmia Bharat Sugar gained 23.5%, Uttam Sugar Mills increased 22.6%, and DCM Shriram Industries climbed 17.5%.
The two companies among the top 20 whose shares declined were Triveni Engineering & Industries and Zuari Industries. Triveni Engineering fell 40.91%, while Zuari Industries declined 0.93%.
However, the sharp decline in Triveni Engineering’s shares was largely due to a technical adjustment. The company demerged its power transmission business last month. Following the demerger of the power business, its shares fell 38.5% on July 22.
Sugar prices have risen sharply in recent days. The ex-factory price of M-grade sugar in Uttar Pradesh, before GST, reached Rs 5,400 per quintal on August 18, while prices in Maharashtra were around Rs 5,300 per quintal. In Delhi, the wholesale price of sugar has reached approximately Rs 5,800 per quintal. The increase is expected to be reflected in retail prices soon.
