Balrampur Chini turns sweet

Balrampur Chini Mills figures out in the top gainers list on the BSE today morning. With volumes surging almost 2 times, the stock is up 9% at Rs.59, with an intra day high at Rs.60.90. Its 52-week high stands at Rs.88.

The stock is up as explained by our Editor Mr.SP Tulsian in the Market Whispers column, as the UP Govt is learnt to have finalised the rate of Rs. 240 per quintal for sugarcane for this season, against Rs.280 per quintal fixed for prevoius year. The difference of Rs. 20 will be paid by the UP Govt., while Rs. 20 will be paid by the companies, if the sugar realisation exceed Rs. 31 per kg. for the season. This will be paid within 90 days from end of the season. If realisation is less than Rs. 31 per kg., then the companies will not bear any burden as was the demand of the mills.

Mr.Tulsian expects almost all sugar stocks to remain ‘sweet’ in the next few days as this news will be well received by the market.