Elara Securities has made a concerning prediction for companies in the juice ethanol industry. According to a report given to CNBC-TV18, these companies may experience a negative first half of financial year 2025, with ethanol volumes potentially declining by as much as 20%. This is a significant decline that could have a major impact on the industry. It’s important for companies in this sector to take this prediction seriously and prepare accordingly.
Did you know that sugar stocks such as Balrampur Chini, Praj Industries, Dhampur Sugar, and Dwarikesh Sugar have seen a decline of 15% to 20% in the past week? This is because the government has recently requested sugar mills to not use sugarcane juice and syrup for ethanol production during the 2023-24 season. If you are an investor in these stocks, it’s important to stay informed about any changes in government regulations that could potentially impact the industry.
Elara Securities predicts a negative outlook for juice ethanol companies in H1 of FY25, and ethanol volumes may decline by 20% during that period. EBITDA is also expected to fall by 4% to 5% over the next 18 months. Balrampur’s Saraogi believes that tenders for B-heavy molasses will be executed, but there is no clarity on new tenders. However, Consumer Affairs Secretary Rohit Kumar Singh believes that the review is a constant process and domestic sugar availability is the supreme criteria for the government. Sugar stocks saw some relief after meeting with the Secretary of Petroleum & Natural Gas. Stay informed for better investment decisions
