Sugar company Dhampur Sugar Mills is seeing a share price recovery, after sugar stocks had fallen in the first week of April after the government had decided to allow a restricted amount of duty free imports of raw sugar, upto June 12 2017. Stock prices firmed up for sugar companies after rating agencies ICRA and CRISIL noted that profitability and sugar prices are unlikely to be impacted by the imports, due to low closing inventories and lower than expected production.

Sugar inventories, the agencies said, are expected to be "at an eight year low", due to lower production in Maharashtra and Karnataka. This will result in prices remaining stable through the current and upcoming sugar seasons, CRISIL noted. Dhampur and other mid-cap sugar companies are likely to accrue profits as a result, which would be higher than the previous year's comparable quarters.  

Dhampur Sugar Mills also gained today on a purchase of a 1.2% stake by investor Dolly Khanna.