Rs 14 to Rs 124: This sugar stock turned into a multibagger in three years; fell after four sessions

Shares of Ugar Sugar Works Ltd have delivered 760% returns to shareholders in the last three years. The stock has surged from Rs 14.49 on June 19, 2020 to an intraday high of Rs 124.60 on June 19, 2023, translating into 760% returns during the period. In comparison, Sensex has surged 82% in three years. An amount of Rs 1 lakh invested in the Ugar Sugar stock on October 19 last year would have turned into Rs 8.59 lakh today.  

The sugar stock touched an intraday high of Rs 124.60 on Monday against the previous close of Rs 122.20 on the BSE.  It also fell 4.66% lower to Rs 116.5 during the same session. Later, the stock closed lower at Rs 119.25, down 2.41% to Rs 119.25 on BSE. The stock ended in the red after four sessions.   

In terms of technicals, the relative strength index (RSI) of Ugar Sugar stands at 64.6, signaling it's trading neither in the overbought nor in the oversold territory. The stock has a beta of 1.1, indicating high volatility in a year. Ugar Sugar stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   

Market cap of the firm fell to Rs 1341.56 crore on BSE. Total 2.07 lakh shares of the firm changed hands amounting to turnover of Rs 2.47 crore on BSE.  

The share hit a 52-week high of Rs 126.95 on  June 16, 2022 and 52-week low of Rs 43.10 on February 10, 2023.  

For the quarter ended March 2023, 42 promoters held 44.35% stake or 4.98 crore shares and 53613 public shareholders owned 55.65% stake or 6.26 crore shares of the company. 52435 resident individuals held individual share capital of up to Rs 2 lakh and owned 4.59 crore shares at the end of March 2023 quarter. Seven resident individuals owned individual share capital above Rs 2 lakh in the last quarter. Meanwhile, 10 FPIs owned  4.87 lakh shares of the firm at the end of March 2023 quarter.  

Financial performance   

For the quarter ended March 2023, the company's net profit zoomed 339.76% to Rs 65.26 crore against profit of Rs 14.84 crore in the corresponding quarter of previous fiscal. Sales climbed 67.45% to Rs 608.47 crore for the quarter ended March 2023 against sales of Rs 363.38 crore in March quarter of the previous fiscal.  

The firm reported a 137.83% rise in net profit to Rs 103.05 crore for the fiscal ended March 2023 against Rs 43.33 crore profit for the March 2022 fiscal. Sales climbed 57.74% to Rs 1794.18 crore in the last fiscal against Rs 1137.46 crore sales in March 2022 fiscal.  

 Ugar Sugar Works is the flagship organization of the Shirgaokar Group of Companies. The company has been involved in the manufacturing of white crystal sugar.