52-week high alert: This multibagger stock reported more than 4X jump in net profit!

The net profit of the company zoomed 339 per cent from corresponding quarter last year

On Tuesday, shares of Ugar Sugar Works zoomed more than 6 per cent to trade on new 52-week high and intraday high of Rs 119 apiece on BSE. The scrip witnessed massive spurt in volume by more than 2.3 times.   

The amount of cane crushed was larger in the fiscal year 2022 compared to the prior year, which led to an increase in revenues of the company of around 20 per cent on an annual basis. To increase the capacity of its distillery, the company has started a large capital project for Rs. 200 crore distributed across the previous and current fiscal years.  

Due to supply shortages from other major producers of sugar, such as Brazil and Thailand, as well as persistent geopolitical difficulties, sugar prices climbed in the export market in the previous fiscal year, increasing the company's profits.  

In Q4FY23, total income surged more than 50 per cent from last year’s same quarter to Rs 649.43 crore. The net profit of the company zoomed 339 per cent from corresponding quarter last year to Rs 65.25 crore.   

DSIJ offers a product 'Multibagger Pick" with recommendations for multi-bagger stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the product details pdf here

The Ugar Sugar Works is engaged in the manufacture and sale of sugar, industrial and potable alcohol and generation and distribution of electricity. Established in 1939, the company is one of India’s oldest sugar mills.    

The stock has positive traction this year with the company giving multibagger returns of more than 100 per cent in just 1 year and more than 47 per cent in the last 6 months. Keep a close eye on this multibagger stock.