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

As expected, Balrampur results were good and thats why the stock has run up.
With expected announcement on ban on sugar ethanol being removed, the sector will be re-rated.

• Dhampur Bio is expected to show good Q2 and Q3 profits due to liquidation of sugar stocks. Also commissioning of grain based ethanol plant will increase profits. (Technically also it is at golden cross over level of 135).
• Uttam Sugar is fairly valued but positive impact of increase in crushing capacity could be there. Risk of red rot is not clear as of now.
• Dhampur Sugar, Triveni will affected by red rot this year