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Davangere Sugar Stock Rises on Ethanol Demand Optimism
Davangere Sugar Company’s share price went up during Thursday’s trading.
The increase happened while crude oil prices rose above $100 per barrel.
Higher oil prices can make ethanol more attractive for blending with fuel.
Sugar companies can produce ethanol alongside sugar.
A market expert said this may have encouraged investors to buy the stock.
However, the company’s share price has fallen significantly over longer periods.
Its profit and revenue were also lower in the latest reported quarter than in the previous quarter.
This means the one-day rise does not necessarily show that the company’s longer-term performance has improved.
Davangere Sugar Company shares rose about 6.18% during Thursday’s intraday trading session.
The rally coincided with Brent crude prices rising above $100 per barrel.
Higher crude prices may support demand for ethanol blending, benefiting sugar producers with ethanol operations.
The stock traded at ₹1.90, with a market capitalisation of ₹271.70 crore at 12:55 p.m.
Despite the daily gain, the shares had fallen about 52% in six months and 51.5% in one year.
- Who
- Davangere Sugar Company Limited and its shareholders were involved in the market movement.
- What
- The company’s shares rose about 6.18% intraday amid optimism about ethanol blending.
- Where
- On the Indian stock market, with trading reported on BSE.
- When
- During Thursday’s intraday trading session; the share price was reported at 12:55 p.m.
- Why
- Rising Brent crude prices were expected to support ethanol-blending demand and potentially benefit sugar companies producing ethanol.
Key facts
- Intraday gain
- Approximately 6.18%; the stock was also reported 6.13% higher during trading.
- Reported share price
- ₹1.90 per share at 12:55 p.m.
- Market capitalisation
- ₹271.70 crore.
- Trading range
- Intraday high of ₹1.90 and low of ₹1.74.
- Longer-term performance
- Down about 52% in six months and 51.5% in one year.
- Latest quarterly net profit
- ₹94 lakh in Q1FY27, compared with ₹1.95 crore in Q4FY26.
- Latest quarterly revenue
- ₹34.72 crore in Q1FY27, compared with ₹83.82 crore in Q4FY26.
Quotes
Anuj Gupta
SEBI-registered market expert
“Sugar stocks are rising as soaring crude oil prices have fueled the demand for ethanol blending.”
livemint.com
Sources
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