OMCs announce additional incentive on maize-based ethanol; BCL Industries, Gulshan Polyols and sugar stocks jump
At around 9:55 a.m., BCL Industries shares were up nearly 10 per cent, Gulshan Polyols stock was up over 4 per cent, Rajshree Sugars was up over 2 per cent, while Shree Renuka Sugars, Bajaj Hindusthan Sugar, and Mawana Sugars were trading over 1 per cent higher.
Stock market today: BCL Industries, Gulshan Polyols, and most sugar stocks edged higher in the morning trade on Friday, January 5, after oil marketing companies (OMCs) on Thursday announced an additional incentive of Rs 5.79 per litre (excluding goods and services tax) for ethanol sourced from maize.
At around 9:55 a.m., BCL Industries shares were up nearly 10 per cent, Gulshan Polyols stock was up over 4 per cent, Rajshree Sugars was up over 2 per cent, and Shree Renuka Sugars, Bajaj Hindusthan Sugar, and Mawana Sugars were trading over 1 per cent higher.
On Thursday, Indian state fuel retailers raised the purchase price of ethanol made from maize by Rs 5.79 per litre to Rs 71.86 ($0.8635) per litre to encourage its production for blending with gasoline. The new rates are applicable from today.
To ensure a sufficient supply of the sweetener in the market, maize will be used as an alternative to sugar to boost ethanol production. In December, the government directed sugar mills not to use cane juice to produce ethanol as the country's sugar production is expected to decline in the 2023–24 marketing year that began in October.
However, it lifted the ban within a week.
Also read: OMCs announce additional incentive of Rs 5.79 per litre on maize-based ethanol, hike applicable from Friday.
Earlier on Wednesday, Petroleum Minister Hardeep Singh Puri stated that the number of ethanol-blended fuel E20 stations in India has crossed 9,300 and that the government was on pace to complete the project by 2025.
Which companies will benefit from the move, and how?
According to Zee Business Research, BLC Industries, India Glycols, and Gulshan Polyols will benefit from the move as they manufacture ethanol from maize.
The price hike will help the above companies' earnings before interest tax depreciation and amortisation (EBITDA), realisation, and margins improve.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
12:44 PM IST