Thursday witnessed a remarkable surge in sugar company stocks on the BSE, with gains of up to 19%, fueled by investor confidence and optimistic sector growth forecasts. Analysts have set high expectations for the sugar sector, and this positive outlook is driving momentum in the market.
A 19% Rally Fueled by Investor Confidence
Magadh Sugar and Energy Limited’s shares stood out, climbing nearly 19% to reach a 52-week high of Rs 728 on the BSE Sensex. The stock also achieved the same 52-week high milestone on the NSE.
Dalmia Bharat Sugar & Industries experienced a significant uptick, surging almost 14% to reach Rs 481.40, marking its 52-week high on the BSE. The stock opened the day with gains at Rs 443.95 and reached Rs 485 on the NSE.
Magadh Sugar and Dalmia Bharat Hit 52-Week Highs
Other sugar companies have also joined the rally. On the BSE, Uttam Sugar Mills recorded a nearly 10% increase to Rs 452, Dhampur Sugar Mills surged by more than 14% to Rs 319.50, and Balrampur Chini Mills Limited witnessed an over 8% rise to Rs 449.60. Avadh Sugar and Energy Limited achieved a weekly high, surging by almost 10% to reach Rs 733.85. Dwarikesh Sugar Company saw a growth of more than 10%, reaching Rs 103.99. Triveni Engineering & Industries Ltd reached its 52-week high of Rs 386.90, marking a 9% increase.
Notable Gains in Sugar Companies as Analysts Predict Bullish Future
Analysts from DAM Capital have initiated coverage on four sugar companies—Balrampur Chini Mills Ltd, Triveni Engineering Industries Ltd, Dalmia Sugar, and Dwarikesh Sugar—with a ‘buy’ rating, projecting potential gains of up to 28% over the next 12 months. DAM Capital predicts that the rapidly developing El Niño conditions will hinder sugar production in major sugar-producing states, potentially keeping domestic sugar prices above Rs 37 per kg. This anticipated trend is expected to benefit sugar companies based in Uttar Pradesh.