Dwarikesh Sugar

India has a cushion to export an additional 1 million tonnes of the sweetener if the domestic output reaches an estimated 33.6 million tonnes this year

Shree Renuka, Dwarikesh, Triveni Engineering, Uttam Sugar, Dhampur Sugar and Dalmia Bharat Sugar are down in the range of 2 per cent to 7 per cent on the BSE.

Rallying energy markets, tight sugar availability, COVID lockdowns in China and logistical issues from the fallout of Russia's military invasion of Ukraine have led to uptick in spot sugar prices.

Magadh Sugar & Energy, Rana Sugar, Uttam Sugar Mills, KM Sugar, Andhra Sugar, Mawana Sugar and Shree Renuka Sugar surged 10 per cent to 15 per cent on the BSE.

Sugar stocks rallied up to 11 per cent on the BSE in Friday's intra-day trade on strong outlook and foreign institutional investors (FIIs) interest.

Dwarikesh Sugar hit a new high of Rs 113.70, on rallying 9% on Wednesday. The stock has surged 25% in the last one week, as compared to a 3% decline on the S&P BSE Sensex.

Major sugar stocks are ready to claim new bullish territory

According to CRISIL, sugar mills are expected to see both revenue and profitability improve in the 2022 season (SS 2022; October 2021 to September 2022).

On World Environment Day (June 5), Prime Minister Narendra Modi announced that the target of 20 per cent ethanol-blended petrol has been advanced by five years to 2025

ICICI Securities believes this would encourage sugar companies to further add sugarcane juice and grain-based ethanol capacities

The government reduced the export subsidy from Rs 5.85 / kg to Rs 4.0 / kg on any sugar contracted for export on or after May 20, 2021

Most brokerages have a positive stance on India's sugar industry as it appears well poised to benefit from global and domestic factors

India's sugar industry is well poised to benefit from global and domestic factors.

The stock hit a new high of Rs 656, rallied 53% from Rs 430 on July 19