We all want to make good profits from the stock market, and we get a chance sometimes. Such an opportunity has been in these three sugar stocks. Investing in sugar stocks presents an attractive opportunity for investors who want substantial returns, especially in the current market environment. India is the world’s largest sugar producer and consumer, and the sector is likely to grow due to consistent demand and government initiatives promoting ethanol blending. Those who have delivered strong financial performance benefit not only from rising domestic consumption of sugar but also from global trends favoring renewable energy sources. As the market braces for potential volatility, adding these stocks to your portfolio now could yield significant returns, ensuring you can take advantage of the momentum before any selling storm passes

Invest in These 3 Sugar  Stocks Before the Selling

Here we are talking about three sugar stocks that can give us a chance to earn good profits. Investing in three sugar stocks like Dhampur Sugar Mills Limited, Ador Welding Limited, and ITD Cementation can be beneficial ahead of potential market corrections. Dhampur Sugar Mills Limited is a major player in sugar and renewable energy, with a market capitalization of ₹1,484 crore, and its current price is ₹227. Despite facing a decline in sales recently, the stock can provide a good income. Ador Welding Limited specializes in welding solutions and has shown resilience in its financial matters, making it an attractive option for investors. Finally, ITD Cementation, which is engaged in infrastructure development, is poised for growth amid rising government spending on projects, and each of these stocks offers unique advantages that can provide great returns.

These are 3 sugar stocks

Let us talk about these three sugar stocks in detail and how we can make good money from them. We do not get such opportunities again and again.

• Dhampur Sugar Mills Ltd
• Ador Welding Ltd
• ITD Cementation

1. Dhampur Sugar Mills Ltd

This is the first of the three sugar stocks we are discussing. Dhampur Sugar Mills operates a diversified and integrated business model that focuses primarily on sugar production and its by-products. Its major revenue comes from sugar production, with a crushing capacity of 45,500 TCD across multiple plants. Their significant growth comes from ethanol production, which generates around 10 percent of revenue. With a focus on heavy molasses for efficiency and the generation of renewable power from bagasse, the company adds stability to its revenue streams and includes bio-fertilizer and industrial chemicals, enhancing resource utilization.

Dhampur Sugar Mills has experienced challenging stock performance recently, due to which the stock has seen volatility. The stock received a ‘Strong Sell’ rating due to a significant decline in profits and net sales, with profit before tax declining by 104.2% and profit after tax declining by 95.4% in Q1 FY25 compared to previous quarters. Over the last three years, the stock has returned -24.47%, which is lower than the Nifty Smallcap 100 index, which gained 79.39% during the same period. However, when we talk about the current valuation as of October 2024, the stock price was around ₹ 228 last week, with a 52-week range of between ₹ 191 and ₹ 326. Overall, the company’s financial struggles have led to a pessimistic outlook among analysts.

Experts have chosen Dhampur Sugar for the long term. This sugar stocks is trading in the range of Rs 218. The 52-week high is Rs 307. It is the country’s leading sugar company. Apart from this, it also engages in ethanol production and power generation. The price of sugar and ethanol is going to increase, due to which the outlook looks strong. The benefits of the capex done recently will now be visible. In such a situation, the long-term target is Rs 330. This is 45-50% higher than the current level.

2. Ador Welding Ltd

Ador Welding Limited is a leading player in the field of welding company products, technologies, and services.And this is the second of the three sugar stocks It is also engaged in providing customized solutions for multidisciplinary projects and contracts related to refineries, oil and gas, petrochemicals, and other sectors. Established in 1951, it has a strong market presence in India and exports to over 40 countries. The business model includes: Welding Consumables, which contribute 75-80% of revenue and offer over 200 types of products. The company accounts for about 15% of sales, with a focus on domestic manufacturing, and provides specialized services and products for various industries, including defense and infrastructure

The second of these 3rd Sugar Stocks is & Welding Ltd. Talking about the stock performance of Welding Limited, the stock has declined by 4.29% in one week, which is a slight decline in the recent market. Talking about the last month, a slight increase of 2.54% has been seen; the quarterly performance shows a decline of 4.65%, which indicates some challenges or fluctuations in the market. The stock has declined by 5.14% in the last six months. In the last year, there has been a gain of 20.95%. Over the past three years, the stock has gained up to 96.95%; in the last five years, it has increased by 339.05%, which shows its growth path, and for this reason, we can bet on this stock.

Experts have chosen this sugar stock, Ador Welding, on a positional basis, and the stock of the industrial products manufacturing company is trading in the range of Rs 1345. If we talk about its 52-week high, then it is Rs 1770, and its low is Rs 1088. In such a situation, it is available at a very corrected price, from which a good profit can be made. The distribution network is strong, and the demand outlook is excellent. In such a situation, the positional target is Rs 1650.

 

3. ITD Cementation

This is the third sugar stock we are going to talk about in this article, which is ITD Cementation India Limited. It primarily operates in the construction sector, focusing on engineering, procurement, and construction (EPC) services. The business model includes engaging in the construction of marine structures, large-scale rapid transit systems, tunnels, airports, and highways. It also provides geotechnical investigation, piling, and rehabilitation work, leveraging advanced technologies for efficient execution. Additionally, it collaborates with international firms for expertise and technology transfer. Talking about its market position, it targets both public and private sectors, taking advantage of government infrastructure initiatives to secure contracts.

This third Sugar Stock, ITD Cementation India Limited, has been impressive over different time periods. In the last 1 week, it has increased by 6.4%; in 1 month, it has increased by 4.36%; and in 3 months, it has remained almost stable with a slight decline of 0.02%. In the last 1 year, an increase of 155.7% has been seen, and in 3 years, there has been an impressive increase of 634.23%. In 5 years, there has been an increase of 1124.76%. The stock has shown a continuous increase, and on this basis, we can consider it a good stock that can yield a good profit. Its 52-week high price is ₹ 615, and the lowest price is ₹ 188, which shows a significant increase over the last years.

This is the third sugar stock chosen by experts. ITD CEMENTATION has been chosen for the short term. This stock is at the level of Rs 614. In intraday trading, it made a new lifetime high of Rs 695, and it is the leading engineering and construction company in the country. Apart from India, it has a presence overseas as well. The order book is strong. Due to recent orders, a big move has occurred in the stock. In such a situation, the level of Rs 760 can be seen.

Disclaimer; The information provided in this note is for general educational purposes only and should not be considered as a recommendation to buy or sell any stocks. Investors should conduct their own research and consult with financial advisors before making any investment decisions

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