Following the anticipated approval by the Indian government for sugar exports that will aid in lowering domestic excess, Dalmia Bharat, Balrampur Chini, and other sugar stocks soar.
Dalmia Bharat to Balrampur Chini:
The share prices of Dalmia Bharat Sugar and Industries Ltd, Balrampur Chini Mills Ltd, and other sugar companies experienced significant increases following the anticipated approval of sugar exports by the Indian government, which will aid in managing the country’s sugar glut. According to several news sources, the government may soon permit the export of 10 lakh or one million tons of sugar.
As the sugar season continues, the industry has asked the government to permit some sugar exports. Every year, the sugar season begins on October 1. Sugar stockpiles have been steadily rising due to certain exports from the nation that are anticipated to enhance sugar prices and take care of domestic surplus.
The share price of Dalmia Bharat Sugar and Industries Ltd. began Monday at ₹369.05 on the BSE, marginally higher than its closing price of ₹359.05. Following that, the Dalmia Bharat Sugar and Industries share price increased even further, reaching intraday highs of 379.05, representing gains of about 4.5%.
Additionally, the share price of Balrampur Chini Mills Ltd. began at ₹508.05, which was higher than the closing of ₹495.20. The share price of Balrampur Chini Mills then surged to a peak of ₹519, translating into gains of about 5%.
Centrum Broking Ltd. responded to recent news reports indicating that the Government of India (GoI) is considering a 1 MMT export quota by stating that this move is anticipated to result in favorable realizations due to the rupee’s depreciation and, more importantly, support domestic sugar prices.
According to Centrum Broking, sugar prices have steadily risen by an extra Rs1,000–1,500 per ton in Uttar Pradesh, bringing their current price between Rs39,500 and Rs40,000 per ton. According to Centrum analysts, this is expected to increase EBITDA margins in 4QFY25 and 1HFY26 significantly. According to Centrum experts, Maharashtra has seen a comparable price increase, but one that is more modest. Balrampur Chini Mills continues to be our top choice in the industry.
