The shares of Uttam Sugar Mills Limited gained 5 percent in the early hours of Wednesday at Rs 314 levels. The prices climbed after the company announced its capex plans of Rs 96 Crores.
The company announced that it will increase its Distillery capacity (Ethanol) by 100 KLPD at the Barkartpur plant from the existing capacity of 150 KLPD, to increase the total capacity to 250 KLPD. The company’s move is in line with the government’s goal of blending ethanol with fuel. It aims to add it by December 2023.
The company also decided to increase the cane crushing capacity from 23,750 TCD to 26,200 TCD and improve energy efficiency with an investment of Rs 40 crore by November 2023.
In the last five days, the stock has jumped by 9 percent and in the span of a month the stock has risen by 23 percent. The stock is currently trading near its 52-week high of Rs 337.15 which it reached in April last year.
Uttam Sugar Mills Ltd. is engaged in the manufacturing of Sugar, Industrial Alcohol, and the Generation of Power. The company has some of the big names under its clientele which includes Mother Dairy, Britannia, Parle, Pepsico, Hamdard, Dabour, and others.
In Q2FY23, the company reported a total revenue of Rs 454.53 Crore which declined Year on Year from Rs 476.4 Crore. They reported a net loss of Rs 10.04 in the period compared to a profit of Rs 44 lakhs in Q2FY22.
The shares of the company have logged a multibagger return of 208 percent in the span of two years as the share price has risen from Rs 101 levels in January 2021 up to the current levels.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
