Sugar companies dynamics has changed parmanently

"when it comes to remuneration for farmers, there is no other crop as compared to sugarcane."
Output increase due to new variety and option to use sugarcane for sugar or fuel has changed the dynamics. 

Due to above reasons, we can expect re-rating of Sugar stocks. It will start commanding more Price to Earning than earlier.

Three stocks I have discussed as my favorite. Two big companies are Dhampur Sugar and Balrampur Chini. One mini one was KM Sugar. Now, after 3x return from KM Sugar, I do not suggest this. 

KM Sugar CMP is Rs 31.

How India's sugar sector managed to shrug off its perpetual cyclical nature

#KMSUGAR is at Rs 11.50 from Rs 9 when I mentioned. Now, it started gaining after testing my patience. Good that I re-entered free days back. #stocksToWatch https://t.co/gRb4SoP1uQ

— Satya Prakash (@sa8ypr) August 19, 2020

Wait to Load Sugar Stock

I have mentioned Sugar Stock to load after Corona virus bloodbath. That time Sugar stocks gained too as this was treated as consumption stocks. But, I read that 65% to 70% of sugar is used by industry. This way consumption of sugar cannot reach high level.

Wait for Sugar Stocks. It may take some time before Sugar Stocks starts gaining. Sugar stocks are good compared to many years back. But now it not the right time to stick to it.

Isopropyl Alcohol (IPA) and Ethyl Alcohol/ENA are used in Hand Sanitizer

Two kinds of alcohols are used in Hand Sanitizer - Isopropyl Alcohol (IPA) and Ethyl Alcohol/ENA. First one, IPA is preferred.

I was checking what else is used in Sanitizers and disinfectants after this post where I have mentioned Ethyl Alcohol.

We have bad luck in selecting companies for Isopropyl Alcohol as this is only produced by Deepak Fertilizers. The IPA was only 8% of total revenue in first nine months of FY20. Also, this company is not looking very good seeing other statements. Big part of isopropyl alcohol are imported. So, only Ethyl Alcohol based Sanitizer will give benefits to our companies in India which are generally produced by Sugar Companies.

Stocks to look after recent Bloodbath due to Corona Virus

Here are few stocks you can look to buy after COVID pandemic or you can say Chinese Vurus :)

HDFC Bank,
IRCTC,
Manappuram Finance,
Muthoot Finance,
Sugar Stocks:
   Balrampur Chini and Dhampur Sugar,
SBI Cards,
Polycabs India,
Deepak Nitrate,
Alkyl Amines,
KEI,
ION Exchange,

VIP Industries,
Airlines Stocks.


Stay updated on Twitter: @sa8ypr

Sugar output is high this year

Sugar output in India and outside is high this year. In this case, help from Govt to keep the Sugar price at little high to help Sugar Mills and thus help farmers get all dues may not help much.

Came to know about Sugar market status now. Excess Sugar is available in India and on International market. Experts think that even removing 20% export duty wont help sugar mills as international market is cheaper currently. Brazil is largest producer of Sugar. 2nd is India.

Balrampur Chini has buyback offer. Plan to buy 2.81% at Rs 150. The company will spend Rs 99 Cr on the buyback.
CMP: Rs 119.

I was thinking of Sugar stock but current scenario is not supportive of Sugar price. In this case, can sugar stock gain price! Present govt want business and understand that better condition of Sugar Mills is useful to pay farmers their due.

Recently, I have mentioned Dhampur Sugar and Dwarikesh Sugar. Dhampur Sugar Dec, 2017 result came good.