Sugar stocks in focus: Short-term reversal or have they bottomed out?

After the massive slaughtering post April 2022, sugar stocks consolidated in June and are now witnessing a pullback rally.

Shares of sugar companies closed with strong gains on Thursday, July 21. Avadh Sugar & Energy was the top contender climbing 6.50 per cent followed by Dhampur Sugar Mills, which rose close to 5 per cent. Other sugar stocks like Balrampur Chini Mills, Shree Renuka Sugars and Triveni Engineering & Industries also registered considerable gains. 

Sugar stocks have risen sharply in the last two years, with few stocks even doubling in value.  However, post April 2022, most of them corrected sharply between 30 – 40 per cent. 

Lately, in the month of June, major sugar stocks held ground and traded