5 sugar stocks retrace up to 60% from 52-week highs. Right time to accumulate?
2 min read . Updated: 23 Jun 2022, 09:11 AM IST
Premium- Quality sugar stocks like Dhampur Sugar Mills, Mawana Sugars, Dwarikesh Sugar, Shree Renuka Sugars, EID Parry, etc. have corrected heavily from its respective 52-week high
Sugar stocks have been nosediving for near one month after Government of Indian (GoI) levied excise duty on sugar export. Quality sugar stocks like Dhampur Sugar Mills, Mawana Sugars, Dwarikesh Sugar Industries, Shree Renuka Sugars, EID Parry, etc. have corrected heavily from its respective 52-week high.
So, positional investors looking for stocks available at an attractive valuations may look at the following 5 sugar stocks that has remained under base-building mode for long.
1] Dhampur Sugar Mills: Shares of this sugar company is currently quoting ₹213.50 apiece on NSE whereas its 52-week high is ₹584.50 per share. So, Dhampur Sugar share price today is available at a discount of more than 60 per cent. This sugar stock's 52-week low is ₹198.30, which means the sugar stock is mere ₹15 above its 52-week lows.
2] Mawana Sugars: Share price of this sugar company is currently quoting ₹95.50 on NSE whereas its 52-week high is ₹179.70 apiece. the 52-week low of Mawana Sugars shares is ₹59.55. So, the sugar stock has corrected more than 45 per cent from its 52-week high whereas it is trading around ₹46 above its 52-week low. It is one of the sugar stocks that give strong return to its shareholders after ushering in new year 2022.
3] Dwarikesh Sugar Industries: Shares of this sugar company is one of the stocks that have given stellar return to its shareholders after ushering in the new year 2022. However, it has gone through heavy correction in recent sessions. Dwarikesh Sugar share price today is ₹95.80 while its 52-week high if ₹148.45. So, this sugar stock is available at a discount of near 35 per cent from its 52-week highs.
4] Shree Renuka Sugars: This sugar stock has corrected heavily after ascending to its 52-week high of ₹63.20 on NSE in April this year. Renuka Sugar share price today is ₹44.60 apiece, which is around 30 per cent lower from its 52-week high. However, despite heavy correction, this sugar stock is 46 per cent higher in YTD time.
5] Balrampur Chini: Share price of this sugar making company has corrected heavily in recent sessions. In last one month, Balrampur Chini share price has slipped from around Rs413 to ₹357 apiece levels, recording around 13 per cent dip in this period. The sugar stock has 52-week high of ₹525.90 on NSE, which means the stock is currently 32 per cent lower from its 52-week high.
Asked about the sugar stock that one can buy at current levels, Anuj Gupta, Vice President — Research at IIFL Securities said, "In sugar segment, Balrampur Chini looks attractive on chart pattern. The sugar stock has strong support at ₹318 levels whereas the stock is facing resistance at ₹410. So, the stock is currently priced in the middle of its higher and lower range. One can buy the stock and keep on accumulating till it is sustaining above ₹318 apiece levels."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
