That apart, Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills, Ravalgaon Sugar Farm, Avadh Sugar & Energy and Mawana Sugars were up in the range of 2 per cent to 5 per cent on the BSE.
“India sugar production is down 35 per cent year on year (YoY) at 4.58 mn tonne as on 15 December. This drop in production is primarily due to a sharp decline in sugar production in Maharashtra and Karnataka,” industry body Indian Sugar Mills Association (ISMA) said in its latest press release.
Reduction in sugar inventories, say analysts at ICICI Securities, in the next six months, could result in robust cash flow from operations for Balrampur Chini Mills.
They have ‘buy’ rating on with price target of Rs 210 per share.
“The sugar industry is going through a transformation with the introduction of MSPs & increasing level of ethanol blending programme. With increasing ethanol volumes, prices and higher export this year, we believe the company would be able to aggressively liquidate its inventory. This, in turn, would result in additional free cash flows and further de-leverage its balance sheet,” the brokerage firm said in company update.