Sugar stock under ₹5: Despite key benchmark indices of the Indian stock market trading red, some stocks are showing resilience against the sell-off pressure on Dalal Street. Davangere Sugar Company Ltd.’s shares are among them. The sugar stock today opened with an upside gap at ₹2.15 apiece and touched an intraday high of ₹2.29, logging over 7% gain during Tuesday’s dealings.
Market experts believe Davangere Sugar Company Ltd is a sugar company, and crude oil prices have bounced back today after a few days of easing. They said that the rebound in crude oil prices has fueled the buzz around ethanol blending, which is the primary upside trigger. They said that the company’s expansion potential is another reason bulls are showing faith in this fundamental trigger.
Why is Davangere Sugar shares skyrocketing?
Speaking on the reasons that are fueling Davangere Sugar Company Ltd share price today, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “As the name suggests, Davangere Sugar Company Ltd is a sugar company, which is expected to benefit from the ethanol blending. The Government of India (GoI) aims to raise ethanol blending to 22% from the existing 13-14%. Sugar companies that produce ethanol from the sugarcane molasses are expected to get an extra business, leading to improvement in the financials of the company.”
Pointing towards the expansion plans of the company, which may be a reason for attraction for bulls of Dalal Street, Anuj Gupta, a SEBI-registered market expert, said, “The sugar company is planning to expand its distillery operations, while recent reporting describes its UK subsidiary, Aurevant Global, as a vehicle for opportunities connected with sugar and ethanol. This signals strong and sustained business fundamentals of the company.”
Devangere Sugar Company’s financials
In FY26, the company’s revenue reached ₹238.77 crore, up 11.1% from ₹214.99 crore in the previous financial year.
“Better utilisation, profitable growth and disciplined capital allocation could support a sustained re-rating if they translate into value for each outstanding share,” said Anuj Gupta.
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