{"id":603,"date":"2020-10-17T10:32:11","date_gmt":"2020-10-17T10:32:11","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=603"},"modified":"2020-10-17T10:34:40","modified_gmt":"2020-10-17T10:34:40","slug":"sugar-stocks-do-they-have-the-x-factor","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/sugar-stocks-do-they-have-the-x-factor\/","title":{"rendered":"Sugar Stocks: Do they have the X factor"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p><\/p>\n\n\n\n<p>It would not be deniable to say that Banking and other Financial Institutions (BFSI), Fast Moving Consumer Goods (FMCG) and tech-savvy stocks are known for capturing the attention of the market from decades and associated stocks always remain on the buying list of market veterans, big sharks and financial institutions. Their prolong brand name, strong promoters support and easy access to debt and other instruments for raising funds makes them a compelling pick for investors. These sectors inculcate the potential of generating returns that could tackle the cost of inflation and loss of current purchasing power but manifold returns is likely less expected as the Creme-de-la-cr\u00e8me moment of these stocks have been consumed by initial investors and elephants take a substantial time to move.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Old_school_sugar_companies\" title=\"Old school sugar companies\">Old school sugar companies<\/a><\/li><li><a href=\"#Factors_that_has_pushed_the_sugar_companies\" title=\"Factors that has pushed the sugar\ncompanies\">Factors that has pushed the sugar\ncompanies<\/a><\/li><li><a href=\"#New_savior_in_the_town\" title=\"New savior in the town\">New savior in the town<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Old school sugar companies<\/strong><\/h2>\n\n\n\n<p>Previously,\nsugar companies were banking upon single product, sugar, which is used in\nconsumption mainly by households and hospitality business. The financial\nstatements of the sugar companies were driving by sales of the sugar only\nhaving no other potential source of revenue. Moreover, the sugar companies were\nselling sugar below Minimum Support Prices (MSP) due to cash crunch.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Factors that has pushed the sugar\ncompanies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Regulation of Sugar Companies: <\/strong>The introduction of National\nFederation of Cooperative Sugar Factories Ltd is keeping a check on the sugar\nlobby in case of violation of the stipulations drafted regarding sugar prices.\nMoreover, Niti Aayog is keeping a continuous check on the Minimum Support\nPrices by increasing it to support the sugar mills.<\/li><li><strong>Ethanol for producing oil: <\/strong>The Indian administration is\nconstantly pushing for ethanol-blended petrol (EBP) target year by year (from\n5% to 10 %and now pushing for 20% by 2030). Ethanol is a bio-fuel derived from\nsugarcane, which is blended with petrol to restrict carbon discharge. This has\nsupported the sugar companies to add one more revenue source in their product\nportfolio. This has also pushed the sugar companies to increase their\nproduction capacities and opt for expansion plans.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>New savior in the town<\/strong><\/h2>\n\n\n\n<p>The emergence of Covid-19 in the world economy has spooked the general public and one thing, which has been advised by the doctors, is the carry of sanitizers whose recipe requires ethanol. There is no denying the fact that sanitizers have been used in bulk this year and will continue to remain a major part in personal care list of general public as economy is getting more savvy to healthcare products to avoid getting infected with Coronavirus as movement of men has started after easing norms. The long-term story of the sugar companies for producing ethanol will remain intact and sugar companies are expected to find place in the investor\u2019s portfolio having immense potential of generating manifold returns.<\/p>\n\n\n\n<p>Also read: <a href=\"https:\/\/www.invest19.com\/blog\/why-indian-specialty-chemicals-sector-is-the-new-normal-in-investment-domain\/\">Why Indian specialty chemicals sector is the new normal in investment domain?<\/a><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,127<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"603\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">1    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>It would not be deniable to say that Banking and other Financial Institutions (BFSI), Fast Moving Consumer Goods (FMCG) and tech-savvy stocks are known for [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/sugar-stocks-do-they-have-the-x-factor\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":604,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7],"tags":[],"class_list":["post-603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=603"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/603\/revisions"}],"predecessor-version":[{"id":606,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/603\/revisions\/606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/604"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}