investors get sweet returns from sugar stocks

Investors get sweet returns from sugar stocks

Thursday, 18 May , 2006, 13:08

New Delhi: Sugar stocks are showering investors with sweetest ever gains in the current bull run despite the temporary hiccups like the government intervention seeking price cuts and potential supply concerns.



Underlining the continuing growth momentum in sugar stocks, the total investor wealth in 20 major sugar companies has more than tripled over the past one year, while more than four-fold jump has been witnessed in select cases. |'Fruit'ful festivals|

An analysis of market cap and share price movements of 20 major sugar companies over the past one year shows a jump of nearly 238 per cent in their combined market cap from Rs 6,284.62 crore on May 18, 2005 to Rs 21,256.94 crore on May 17. | Go to Sify Business Home page |

Bajaj Hindustan, one of the largest players in the sector, has seen its market cap growing more than 470 per cent to Rs 7,004.25 crore as on May 17, from Rs 1,225.26 crore a year ago.

Thiru Arooran Sugars has witnessed market cap growth of 35 per cent in the same period, while Balrampur Chini, Bannari Amman, Oudh Sugar Mills, Rajshree Sugars, Riga Sugar, Sakthi Sugars and Simbhaoli Sugars have also registered a jump of more than 200 per cent in their market caps.

The sharp rally in the market valuations of sugar stocks have materialised despite the subdued trend witnessed in the stocks over the past few days.

In the recent past, some amount of weakness has been witnessed on the sugar counters on the back of reports that after cement industry the government might intervene to check the surging sugar prices.