Balrampur Chini share price at 52 week high as sugar producers remain in focus on improved earnings prospects

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Balrampur Chini Mills share prices that have gained more than 15% in November also scaled 52-week highs on Thursday. Stocks of sugar companies remain in limelight with rising sugar prices amidst favorable demand supply dynamics and rising ethanol production. Triveni Engineering and Industries and Bajaj Hindusthan Sugar Ltd shares are also trading close to 52-week highs seen in October and November respectively.

The sugarcane crushing season that starts from 1st October has now caught full momentum. Avantika Saraogi Promoter of Balrampur Chini Mills speaking on CNBC TV-18 said that the Balrampur Chini Mills is geared up for a very positive season ahead and it expects a 10% rise in cane availability with better yields and recovery. This year sugar is the flavor as prices are good and Saraogi said that they expect production of 30 (million Tonne) this year versus 28 mt consumption.

Also Read- Raymond Stock Check: Down 13% in November, should you buy now? It is not surprising that the sugar prices in the country remain firm and analysts expect firm sugar prices resulting in strong earnings growth in FY24 and FY25. The rising ethanol production is another reason that has lifted sentiments and earnings outlook for Sugar producers as their cash flow cycle also has improves Saraogi in the television interview had said that Balrampur Chini Mills will be maintaining a 33:66 ratio for Ethanol to sugar this year. There will be 50% higher production of ethanol this year as the new capacity added will help the company see higher growth.