Query: Holding large quantity Riga Sugars at avg price of Rs.75,what are the prospects? N K Kalia
Thebullishtrends:Riga Sugars share price closed on Friday at Rs.39.70. Riga Sugar Company Limited (RSCL), the flagship company of DHANUKA GROUP has Sugar(3500 TCD), Distillery(50 KLPD) & Organic Fertiliser factories in North Bihar (India)
SUGAR: Company’s sugar factory is one of the oldest sugar factory in India which was set-up in 1933 by The Belsund Sugar & Industries limited under British Management which was taken over by Dhanukas in 1950. The initial installed capacity of the sugar plant was 800 TCD which was increased to 1200 TCD in 1956 than increased to 2000 TCD in 1987-88. In 1995-96 the company undertaken Expansion-cum-Diversification scheme whereby the capacity of sugar plant was increases to 2500 TCD and Distillery Plant of 50 KLPD was set-up.
In 1999-2000 the company implemented the scheme of Sugar Technology Mission (STM) project for Technological Upgradation-cum-Capacity Optimisation Scheme of Sugar Unit as approved by STM, Government of India at the Projected cost of 2675 Lacs and simultaneously undertaken expansion scheme for increasing the capacity to 3500.which was completed in the season 1999-2000. Consequent to said STM Scheme the Major machineries of the sugar plant was newly installed like replacement of entire Mills, addition of Boiler, Turbine and Equipments in Boiling/Manufacturing House.
DISTILLERY: The company’s 50 KLPD Distillery Plant was set-up in September, 1995 for manufacturing and marketing of Molasses based Alcohol which is of high quality and well regarded in the market.
FERTILISER:The N:P:K Manure under the Brand name of HARABHARA FERTILISER. The company is also manufacturing BIO-COMPOST in the name of KRISHI-LABH by using Distillery Effluents on press mud of sugar which is very useful for foodgrains, vegetable, fruits, sugarcane, tea plant etc.
The prospects of the sugar company stocks are depending on the Govt policies. Riga Sugars is not performing for the last few quarters. The financials of Riga Sugars are not encouraging one. Riga Sugars share price almost 50% declined compared to your buying price. The prospects of the company are not encouraging one in near term.
