Sugar stocks have been falling for nearly a month since the Government of India (GoI) imposed excise duty on sugar exports. Quality sugar stocks such as Dhampur Sugar Mills, Mawana Sugars, Dwarikesh Sugar Industries, Shree Renuka Sugars, EID Parry, and others have fallen precipitously from their 52-week highs.
Positional investors looking for stocks with attractive valuations should consider the following five sugar stocks, which have been in the base-building mode for a long time.
Dhampur Sugar Mills: This sugar company's shares are currently trading at 213.50 per share on the NSE, with a 52-week high of 584.50 per share. As a result, the Dhampur Sugar share price today is available at a discount of more than 60%. This sugar stock's 52-week low is 198.30, putting it only 15 points above its 52-week lows.
Mawana Sugars: The share price of this sugar company is currently 95.50 on the NSE, with a 52-week high of 179.70. Mawana Sugars shares have a 52-week low of 59.55. As a result, the sugar stock has fallen more than 45 percent from its 52-week high and is currently trading around 46 percent higher than its 52-week low. It is one of the sugar stocks that will provide a significant return to shareholders after the new year of 2022.
Dwarikesh Sugar Industries: This sugar company's stock is one of the stocks that has provided stellar returns to its shareholders since the new year of 2022. However, it has been heavily corrected in recent sessions. Dwarikesh Sugar's share price is 95.80 today, with a 52-week high of 148.45. As a result, this sugar stock is available at a nearly 35% discount from its 52-week highs.
Shree Renuka Sugars: This sugar stock has fallen dramatically since reaching a 52-week high of 63.20 on the NSE in April of this year. Renuka Sugar's share price today is 44.60, which is roughly 30% lower than its 52-week high. Despite the heavy correction, this sugar stock is 46% higher year to date.
Balrampur Chini: The share price of this sugar manufacturing company has fallen dramatically in recent sessions. Balrampur Chini's share price has dropped from around Rs. 413 to 357 per share in the last month, representing a 13% drop. The sugar stock has a 52-week high of 525.90 on the NSE, which means it is currently 32% lower than its 52-week high.
When asked about the sugar stock that can be purchased at the current price, Anuj Gupta, Vice President of Research at IIFL Securities, said, "Balrampur Chini looks appealing on the chart pattern in the sugar segment. The sugar stock has strong support at 318 levels, while it faces resistance at 410. As a result, the stock is currently priced in the middle of its range. One can purchase the stock and continue to accumulate until it sustains above 318 apiece levels."
