Buy and sell: 4 sugar stocks dip on bulk deals; 3 of them are multibaggers
4 min read 21 Dec 2022, 10:28 PM ISTOn Wednesday, profit booking was recorded in sugar stocks broadly, while four stocks even witnessed bulk deals on NSE where many investors bought and sold equity shares. These four sugar stocks are Bajaj Hindustan, Rana Sugars, Sakthi Sugars, and Ugar Sugar Works.
PremiumThe start of this week began with loads of sweetness in sugar stocks as some of them even touched a new 52-week high. However, on Wednesday, profit booking was recorded in sugar stocks tracking broader bearish markets, while four stocks in this segment even witnessed bulk deals on NSE where many investors bought and sold equity shares. These four sugar stocks are Bajaj Hindustan Sugar, Rana Sugars, Sakthi Sugars, and Ugar Sugar Works.
What's interesting is that three of these sugar stocks are still multi-baggers despite the latest sharp correction and have given triple-digit gains to their investors in about a year. The latest downside in sugar stocks can be because investors are cashing in their gains.
1. Bajaj Hindustan Sugar:
Under bulk deals, as per NSE, Mansi Shares & Stock Advisors purchased 88,33,641 equity shares in this company at ₹19.70 per share aggregating ₹17.40 crore, while Multiplier Share & Stock Advisors bought 83,52,054 equity shares at ₹19.02 per share aggregating to nearly ₹15.9 crore.
However, both investors also sold notable shares in the company. Mansi Shares sold a total of 78,33,592 equity shares in Bajaj Hindustan at ₹19.70 per share for ₹15.43 crore. While Multiplier Share offloaded 51,04,942 equity shares at ₹19.15 per share to ₹9.8 crore.
On NSE, Bajaj Hindustan Sugar stock closed at a 5% lower circuit at ₹17.90 apiece. Although, the stock is still a multi-bagger with gains of 114.37% from its 52-week low of ₹8.35 apiece which was recorded on August 17, 2022.
Bajaj Hindustan is India's leading sugar and ethanol manufacturing company. Part of the Bajaj Group (Kushagra), it is headquartered in Mumbai (Maharashtra), India. The Company has fourteen sugar plants, all located in the North Indian state of Uttar Pradesh (UP).
2. Rana Sugars:
As per NSE data, investor Sureka S J sold a whopping 8,00,589 equity shares in Rana Sugars at ₹25.95 per share aggregating to ₹2.08 crore.
On NSE, Rana Sugars stock closed at ₹25.55 apiece down by 8.42%. The stock is still higher by nearly 19% from its 1-year low of ₹21.50 apiece that was recorded on October 31st this year.
Rana Sugars was incorporated in 1992 in collaboration with Punjab AgroCorporation. In 2002, the company set up a Demonstration Co-generation Project to produce extra power from the Bagasse (a by-product of sugar) and export it to Punjab State Electricity Board.
Sakthi Sugars:
In Sakthi Sugars, Mansi Shares and Multiplier Share carried a bulk deal on Wednesday. As per NSE data, Mansi shares bought 10,299 equity shares at ₹27.14 apiece to over ₹2.79 lakh, while it further sold around 6,43,706 equity shares in the company at ₹27.17 per piece aggregating to nearly ₹1.75 crore.
Further, Multiplier Share bought 6,00,001 equity shares in Sakthi Sugars at ₹26.85 apiece amounting to over ₹1.61 crore, however, also sold 2,94,299 equity shares at ₹27.77 apiece for over ₹81.72 lakh.
Sakthi Sugars stock closed at a 10% lower circuit of ₹26.85 apiece on NSE. Still, the stock is a multibagger climbing by nearly 102% from its 52-week low of ₹13.30 apiece that was recorded on February 25th this year. Notably, Sakthi Sugars stock touched a fresh 52-week high of ₹34.40 apiece on December 19th before correcting.
Sakthi Sugars is one of the largest producers of Sugar in the country with an aggregate capacity of 19,000 Tonnes of cane crush per Day (TCD). The company has a diversified portfolio including sugar production and soya products.
The Ugar Sugar Works:
Graviton Research Capital LLP made notable buying and selling in Ugar Sugar Works on Wednesday.
As per the NSE data, Graviton bought 5,67,204 equity shares at ₹101.24 apiece to over ₹5.74 crore, but also sold similar equity shares however at ₹101.15 apiece.
On NSE, this sugar stock closed at ₹100.9 apiece down by 7.05%. Earlier, the stock had touched a new 52-week high of ₹115.85 apiece on December 19, 2022. However, the stock is currently a multibagger with whopping gains of 260.35% from its 52-week low of ₹28 per piece recorded on December 20th last year. That said, in a year, to date, Ugar Sugar Works has given triple-digit gains to investors.
Ugar Sugar Works is the flagship company of the Shirgaokar Group of Companies. Ugar Sugar is the largest 'single location' manufacturer of sugar in Southern India with a licensed capacity of 10,000 TCD. Ugar manufactures more than 1.5 million bags of sugar annually.
Two of the four sugar stocks had touched a new 52-week high on December 19th. On Monday, there was a strong upside in sugar stocks after the 48th GST council meeting where the Centre announced its target to double ethanol blending from existing from 10% to around 18-20% by end of 2023. Also, the government reduced the GST rate on ethanol for blending to 5% from the earlier 18%. These developments stirred optimism in sugar stocks.
