Date:16/06/2006 URL: http://www.thehindubusinessline.com/2006/06/16/stories/2006061603831500.htm

Back Sugar stocks: Value pick after fall?

Deeptha Rajkumar

Another segment of stocks that could be looking at a breather are sugar company shares, which were among the worst hit in the recent broad market fall. Most of the frontline and B-Group stocks lost ground by about 40-50 per cent in the bear market.

Even though analysts are awaiting Government guidelines on exports in order to take a call on sugar prices, there is a general consensus that the share prices may see a 15-20 per cent upside from its current levels. Brokers said that value buying may come in.

The share price of Dhampur Sugar stood at Rs 26.75, up 4.49 per cent, on the BSE.

The counter has seen a 41 per cent fall month-on-month. Dwarikesh Sugar, which closed at Rs 106.05 (up 6.16 per cent), has seen a 50 per cent fall. Simbhaoli Sugar ended at Rs 74.65, up 4.11 per cent; it has witnessed 49 per cent fall. Bajaj Hindusthan, which closed at Rs 291.95 on Thursday, has seen a 39 per cent decline. Balrampur Chini ended at Rs 106, having lost around 40 per cent month-on-month.