Shares of Ugar Sugar Works hit a fresh 52-week high of Rs 48.45 as they rallied 17 per cent on the BSE in Tuesday's intra-day trade on the back of heavy volumes in an otherwise weak market. In the past two days, the stock of the sweetener has zoomed 40 per cent after the company announced investment of Rs 200 crore distillery capacity expansions for ethanol production at Ugar Plant.
At 02:34 pm, the stock of Ugar Sugar was trading 7 per cent higher at Rs 44.20, as compared to a 0.28 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over seven-fold with a combined 7.1 million equity shares having changed hands on the NSE and BSE.
Last Friday, after market hours, the company said that it has received environmental clearance for expansion for 645 KLPD on sugarcane juice / syrup to Ethanol. The company proposed capacity expansion up to 845 KLPD under ethanol blending progammme in a phased manner up to next crushing season. The company has the existing capacity of 75 KLPD.
"This project announced is in line with the policy of Government or India for increase in blending of ethanol in fuel. The proposed capacity expansion up to 200 KLPD (already intimated) Plus 645 KLPD (on sugarcane juice / syrup) distillery will be set up at the company’s Ugar Plant at Ugar Khurd. The proposed distillery will utilize sugarcane juice / syrup during the crushing season and in the off season production form B & C Heavy molasses and grains for continuous manufacture of ethanol," the company said.
Meanwhile, for the October-December quarter (Q3FY22), Ugar Sugar reported 56 per cent year-on-year (YoY) jump in consolidated net profit at Rs 51.17 crore as against Rs 28.49 crore in Q3FY21. In September quarter (Q2FY22), the company had posted a consolidated net loss of Rs 5.81 crore.
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