Heard on the Street- Price rise hopes sweeten Dhampur Sugar stock

Shares of Dhampur Sugar hit the upper end of the 5% intra-day circuit filter on Wednesday, closing at Rs 40. The stock has risen 38% over the past one month, as bull operators have been steadily building up long positions at the counter.

According to brokers tracking the stock, the company has valued its inventory of sugar conservatively 15-20% lower than the prevailing market price.

Market talks are that sugar prices are likely to firm up once the new government assumes office at the Centre. Market watchers say this could result in huge gains for the company if there is a sufficient demand for the inventory to be cleared. The company reported net sales of Rs 111 crore for the quarter ended March, significantly lower than Rs 267 crore in the preceding quarter.