Davangere Sugar Share price: If you are looking for a good sugar stock to invest in, then you can keep an eye on the share of Davangere Sugar Company Ltd (NSE: DAVANGERE).
The company has recently approved the proposal to raise funds by issuing a rights issue. The company will raise a maximum fund of Rs 400 crore through this.
However, it will still need regulatory approval. The company gave this information in an exchange filing.
The company’s share fell by 2.95 percent on September 10 and the stock is trading at Rs 6.92 on BSE.
The Target Is To Blend 20% Ethanol In The Country By 2025
Davangere Sugar Company Ltd is planning to increase ethanol production capacity to achieve the country’s ethanol blending targets.
According to reports, during FY25, Davangere Sugar Company Ltd plans to produce ethanol mainly from maize and other grains in October 2024.
India has set a target of 20% ethanol blending by 2025. The government has requested sugar mills to look at alternatives to sugarcane as an ethanol source for production.
An event was held in collaboration with the National Federation of Cooperative Sugar Factories (NFCSF), Amit Shah stated that India will meet its 20 % ethanol-ethanol blending goal by 2025-26 before the date of the original date of 2030.
The minister also emphasized that the ethanol blending program has reduced the import of crude oil in the country’s cost and addressed environmental issues.
How Has Been The Performance Of Davangere Sugar Company Shares?
The share of Davangere Sugar Company Ltd has fallen by about 2 % in the last month. However, over the long term, the stock has provided high returns to investors.
In the last two years, the stock has made a profit of 100 percent to its investors. While at the same time, its shares have grown by 444 % since the beginning of March 2021.
Quick Fact
| Company name | Davangere Sugar |
|---|---|
| Fund raising plan | Rights issue |
| Fund amount | ₹400 crore |
| Regulatory status | Needs approval |
| Ethanol plan | Increase production |
| Production source | Maize and grains |
| Possible target price increase | 20% ethanol blending by 2025 |
| Stock decline (recent) | 2.95% (Sept 10) |
| Stock trading | Rs 6.92 on BSE |
| Stock growth (2 years) | 100% profit |
| Stock growth (since Mar 2021) | 444% growth |
| Government aim | Reduce crude import |
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