Less than two weeks to the Union Budget 2024 announcement, agri stocks are expected to be in focus, with sugar and fertiliser packs likely to come under the spotlight, as the industry expects a slew of benefits from the Finance Minister Nirmala Sitharaman.
The demands put up by the sugar industry before the government include higher procurement prices for ethanol, support for sugar cane harvesters and long term sugar import-export and ethanol production policy. Meanwhile, the fertiliser i ..
Expert Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, said that setting remunerative ethanol procurement prices will boost sugar cane diversion and will also be a support for mechanical harvesters. He was also for a more streamlined fertiliser subsidy system.
Historically, most stocks in the fertiliser and sugar sectors have largely been laggards over the last five years over two weeks in the run-up to the budget day.
In 2019 and 2024, there were interim budgets as both were general elections years. In the interim budget of 2024, Aries Agro and Mangalore Chemicals & Fertilizers, reported double-digit returns in two weeks prior to the budget day. While the former returned 41%, the latter witnessed a 13% rally in the price.
Other prominent stocks like Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Gujarat State Fertilizers and Chemicals (GSFC), Zuari Agro Chemicals, Fertilizers and Chemicals Travancore (FACT), Rashtriya Chemicals and Fertilizers (RCF) gave single-digit returns up to 6%.
Meanwhile, Chambal Fertilizers, Coromandel International and Deepak Fertilizers gave negative returns of up to 11%.
ETMarkets also analysed returns of 14 sugar stocks between 2019 and 2024 and the picture doesn't appear too rosy.
In the run up to the vote on account budget of 2024, certain stocks performed well over the two weeks while others were short of impressive.
Bajaj Hindustan Sugar, EID Parry, KCP Sugar Industries Corporation and Simbhaoli Sugar delivered double digit returns between 12% and 16% in the said period. Others like Balrampur Chini Mills, Ponni Sugars (Erode), Rana Sugars, S ..
Stocks like Piccadily Sugar, Ravalgaon Sugar and Uttam Sugar Mills also saw their price erode by up to 17%.
This article does not analyse triggers that could have engineered a rally or downfall in individual stocks.
Source Name : Economic Times