Brokerage ICICI Securities believes this would not have any impact on sugar companies' fundamentals.
'Large cement plants in India on an average use 30-40 per cent less energy per tonne of cement than the world average'
With favourable mix of ethanol towards B-heavy/juice (feedstock) coupled with higher sugar realisations; operating margins are expected at 12.7%-13.7% in FY22-FY23 (slightly higher than FY21 levels).
Magadh Sugar & Energy, Rana Sugar, Uttam Sugar Mills, KM Sugar, Andhra Sugar, Mawana Sugar and Shree Renuka Sugar surged 10 per cent to 15 per cent on the BSE.
Union minister Nitin Gadkari on Saturday said top officials of automobile companies have promised him that they will start manufacturing vehicles of flex-fuel variants within six months.
Ethanol demand should grow at a 15 per cent CAGR over FY22-30E driven by the government's mandate of 20 per cent ethanol-blending in petrol, analysts say
The sugar industry is going through a transformation from being a cyclical industry to structural growth sector by increasing distillery capacities over the next three years, analysts say.
According to CRISIL, sugar mills are expected to see both revenue and profitability improve in the 2022 season (SS 2022; October 2021 to September 2022).
ICICI Securities believe domestic as well as global sugar prices would remain firm at least for next one year