Dalmia Bharat to Balrampur Chini: Sugar stocks jump after this GoI nod to sugar exporter companies

Stock Market Today: Dalmia Bharat Sugar and Industries Ltd, Balrampur Chini Mills Ltd and other sugar stocks saw their share prices see sharp gains after the Government of India's expected nod for sugar exports, that will help manage the domestic sugar surplus. Various news reports suggest that Government may soon allow 10 Lakh Tonne or 1 million tonne sugar exports

The Industry has been requesting government to allow some sugar exports during the ongoing Sugar season . The Sugar season starts from 1st October every year. Some exports from the country are expected to support sugar prices, taking care of domestic suplus and hence sugar stocks have been gaining regularly.

Dalmia Bharat Sugar and Industries Ltd share price opened at ₹369.05 on the BSE on Monday, slightly higher than the previous close of ₹359.05 The Dalmia Bharat Sugar and Industries share price thereafter gained further to intraday highs of 379.05 marking gains of close to 4.5%

Balrampur Chini Mills Ltd share price also opened at ₹508.05, higher than the previous close of ₹495.20. Balrampur Chini Mills share price thereafter gained to highs of ₹519, translatng into gains of almost 5%.

Reacting to the recent news reports suggesting that the Government of India (GoI) is considering an export quota of 1 MMT, Centrum Broking Ltd had said that “This move is expected to achieve favorable realizations due to the depreciation of the rupee and, more importantly, provide support to domestic sugar prices”.

The Sugar prices have already been gaining momentum and as per Centrum Broking, Sugar prices continuing their upward trend, have risen by an additional Rs1,000-Rs1,500 per ton in UP, now reaching Rs39,500-Rs40,000 per ton. This as pe Centrum analysts is likely to provide a significant boost to Ebitda margiins in 4QFY25 and 1HFY26. Maharashta as per Centrum analysts has experienced a similar, albeit more moderate, price increase. Balrampur Chini Mills remains our top pick in the sector.

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