Shares of Davanagere Sugar Company are in action even as benchmark indices dipped after starting the session in the green. Benchmark indices opened in the green, but at the time of writing, Sensex was down 393.38 points, or 0.53 per cent, to 74,465.61, and Nifty fell 48.80 points to 23,365.50. Amid this volatility, the stock held firmly in the green. The counter started the trading session in the red at Rs 2.12 against the previous close of Rs 2.15 on the BSE. However, it picked momentum and touched the intraday high of Rs 2.32, a gain of 0.17 or 7.9 per cent from the previous close. Last seen, the stock traded at Rs 2.28, up Rs 0.13, or 6.05 per cent. The market cap of the company stood at Rs 326.04 crore.
The stock has gained over the last two days and has surged 9.66 per cent in the period. It has outperformed the sector by 4.36 per cent and technically trades higher than the 5-day and 20-day moving averages but lower than the 50-day, 100-day and 200-day moving averages.
The stock’s 52-week high is Rs 5.48, and its 52-week low is Rs 1.74.
According to experts, the stock is gaining as it is expected to benefit from ethanol blending. The government aims to raise ethanol blending to 22 per cent from the existing 13-14 per cent.
Company’s operating model
The company’s operating model encompasses sugar production, ethanol production, and power co-generation. According to the company’s exchange filing, its ethanol unit can use a variety of feedstocks, including sugar syrup, molasses, and grains.
Revenue in FY26
The company’s revenue in FY26 was Rs 238.77 crore, up 11.1 per cent from Rs 214.99 crore a year earlier. While rising revenue provides a basis for business expansion, it alone doesn’t translate into improved profitability.
Earlier, Mauritius-based institutional fund Craft Emerging Market Fund bought five crore shares of Davangere Sugar Company for over Rs 18 crore through a bulk deal.
Craft Emerging Market Fund, through its two affiliates – Craft Emerging Market Fund PCC – Citadel Capital Fund and Craft Emerging Market Fund PCC – Elite Capital Fund, purchased 2.5 crore shares of Davangere Sugar each, as per the bulk deal data on the NSE.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
