Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains!

Return ranking of sugar stocks in last 1 month:
(1) Dalmia Bharat Sugar – 191 %
(2) Dwarikesh Sugar – 175%
(3) Dhampur Sugar – 81%
(4) Triveni – 68%
(5) Rajshree sugar – 59%

Some other sugar stocks return : Sakthi sugar (58%), Balrampur (38%), Oudh sugar (36%). So generally UP based sugar stocks with lighter balance sheet and smaller MCAP seem to be outperforming. Still 3-4 times return in next 2 years cannot be rules out from these levels if things play out as expected. Govt is also talking about some rational sugarcane policy in next 1-2 months which augur well in near term. Proposed conditions imposed by govt can weed out marginal and weaker players from the sector.