The Sugar stocks continued to rise on Thursday after the government announced high incentives for the company. On December 26th, the Ministry of Consumer Affairs announced a 100 percent incentive on sugar sacrificed for producing ethanol from B-heavy molasses, sugarcane juice, and syrup.
On the sweet news, here are two multibagger sugar stocks that rallied on Thursday:
Ponni Sugars (Erode) Limited
The shares of the company opened at Rs 427.80 and gained as much as 12 percent in the early hours on Thursday to reach a new 52-week high of Rs 479.80. In the last three trading sessions, the stock has surged by 35 percent. On a year-to-date basis, the stock has delivered a multibagger return of 116 percent.
Ponni Sugars (Erode), an associate of Seshasayee Paper and Boards Limited, is a sugar manufacturing company having the capacity to crush 3500 tonnes of sugarcane per day and generate 19 MW of power.
The small-cap sugar stock has a market capitalization of Rs 405 Crore and a dividend yield of 1.17%. The promoters of the company hold a 42.36 percent stake in the company while the Foreign Institutional Investors (FIIs) hold a 23.21 percent stake.
Ugar Sugar Works Limited
The shares of Ugar Sugar Works opened at Rs 94.80 and gained as much as 1 percent in the early hours to reach an intraday high of Rs 104.75 In the last three trading sessions, the stock has surged by 18 percent. On a year-to-date basis, the stock has delivered a multibagger return of 245 percent.
Ugar Sugar Works Ltd is the flagship organization of the Shirgaokar Group of Companies. The sugar manufacturing company is engaged in producing White Crystal Sugar. It also manufactures Bagasse, Filter Cake, and Final Molasses.
The company has a market capitalization of Rs 1,166 Crore and a dividend yield of 0.24%. In addition to that, the promoters of the company hold a 44.52 percent stake in the company and the Foreign Institutional Investors (FIIs) hold a 0.44 percent stake.
Other sugar stocks that rallied on the day were KCP Sugar & Industries Corporation Ltd (gained 7%), Uttam Sugar Mills Ltd (gained 6%), and Vishwaraj Sugar Industries Ltd (gained 5%).
Written by Anoushka Roy
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