InvestorQ : Why are sugar stocks like Balrampur, Triveni and Dalmia Bharat rallying so hard in the last few weeks?
Riya Dwivedi made post

Why are sugar stocks like Balrampur, Triveni and Dalmia Bharat rallying so hard in the last few weeks?

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shrinidhi Rajan answered.
2 weeks ago
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Sugar stocks have been in the midst of a massive rally. In fact, the stocks mentioned by you like Balrampur Chini, Dalmia Bharat and Triveni Engineering rallied 30%-45% in few days. This came at a time when Sensex trended lower. In addition, most equity analysts expect robust earnings growth for sugar companies on demand and pricing edge.

Sugar analysts are confident about the freedom and subsidies given to sugar companies to export sugar and also enhance ethanol blending. Indian government plans to reach the target of ethanol blending to the tune of 20% of petrol by 2025. The big difference will be that this kind of a shift could make sugar stocks non-cyclical, which has been the risk factor all along.

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