His biggest holding
, where he has kept his stake constant since the June quarter of 2020, has climbed 21 per cent in the past one month, 71 per cent in the last three months and 174 per cent in the last one year. Goel holding in Dhampur is worth about Rs 200 crore.
, his 5 per cent stake is worth about Rs 160 crore. Goel has more than doubled his stake in the stock from 2.3 per cent in the June quarter of 2020. The stock has gained 37 per cent in last one month, 120 per cent in last three and 328 per cent in last one year.
Triveni Engineering, Goel’s fourth-biggest holding, has advanced 19 per cent in the last one month, 77 per cent in last three and 242 per cent in the last one year.
(up 192 per cent in last one year), Avadh Sugar & Energy (up 120 per cent in a year), Uttam Sugar Mills (up 124 per cent in a year) and Magadh Sugar & Energy (up 147 per cent in a year) are other stocks where Goel holds between 4 per cent and 5.5 per cent.
His portfolio of 29 smallcaps was worth Rs 949 crore as of Wednesday. Out of this, his portfolio of sugar stocks was worth over Rs 600 crore, data compiled from publicly available corporate database Trendlyne showed.
Goel’s portfolio value has jumped 1.7 times from Rs 562 crore as of March 31, 2021, while it is up 3 times over from the March 2020 level of Rs 378 crore.
Abinash Verma, Director General at ISMA, said sugar is structurally shifting from a cyclical sector into a more stable one. “Through the ethanol policy, the government aims to divert the surplus sugarcane – which is burdening the sugar industry with more and more of sugar which we are unable to sell in the global market without a subsidy –
into the production of ethanol and pay the farmers better,” Verma said in an interview to ETNOW.
A study by
showed wholesale sugar prices in India continued to average in the Rs 33 – Rs 34 a kg range for more than three years now.
S Ranganathan, Head of Research at
, said he has been extremely bullish on the UP-based sugar stocks for the last one year based on the premise that the ethanol story would pan out well. He said capacity additions were already being built up at distilleries in anticipation of such a policy.
JM Financial said the ethanol roadmap report reinforces the government’s commitment to ethanol blending.
However, the brokerage continues to believe that E20 by 2025 is an ambitious target, given the requirement of more than doubling production capacity to 15 billion litres from 6.8 billion, especially considering the weak balance sheets of a significant number of cooperating sugar mills and their dependence on grain-based distilleries that need to go up from to 7.4 billion litres from 2.6 billion litres to meet E20 requirement.
Sugar prices have also been rising globally, which recently led the government to cut exports subsidy to Rs 4,000 per tonne from Rs 5,833. It is unlikely to have any impact as sugar export contracts worth about 5.7 million tonnes were already in place.