Murugappa Group Company Hits Highest Level Since the 90s: EID Parry

A Part of a Prestigious Conglomerate

EID Parry, a key player in the sweeteners and nutraceuticals market, is part of the prestigious Murugappa Group, one of India’s leading business conglomerates. The company boasts an impressive roster of institutional clients, including Mondelez International, Britannia, ITC, Amul, Sun Pharma, GSK, and more.

Record-Breaking Surge in Share Price

On Wednesday, EID Parry’s share price surged by approximately 13%, reaching its highest level since 1994 on the NSE. The stock peaked at ₹833 per share, opening the day at ₹735 and dipping to a low of ₹733.10 before rebounding to the record high. This 13% surge marked the stock’s highest single-day move in the last two years, with 67.53 lakh shares traded on the NSE, the highest single-day volume since November 2023. This volume surge was more than six times its 30-day average of 10.64 lakh shares.

Impressive Gains in 2024

In 2024, EID Parry’s stock gained around 47%, with a 22.5% increase in June alone. For the quarter ending March 2024, Foreign Institutional Investors (FII) increased their holdings from 8.71% to 18.70%, with the number of FII/FPI investors rising from 187 to 378. Domestic Institutional Investors (DII) also boosted their stake from 4.9% in the December 2023 quarter to 23.8% in the March 2024 quarter.

Transitioning Towards Sustainable Growth

EID Parry is embarking on a sustainable multi-year growth phase, diversifying from a single vertical (sugar) to multiple verticals, including sugar, bioenergy, and food & nutrition. The company has laid the foundation for its FMCG business, focusing on value-added products such as jaggery, brown sugar, low-glycaemic index sugars, and other sweeteners. This strategic transition aims to mitigate the risks associated with the sugar sector, influenced by government policies and climatic uncertainties. Additionally, EID Parry is poised to capitalize on the Government of India’s ambitious Ethanol Blending Programme, having made substantial investments in its distillery business.

Strategic Investments and Valuation

Moreover, EID Parry’s stake in Coromandel International, valued at over Rs 26,000 crore, positions it as a significant player in the private sector, being the largest producer of phosphatic fertilizers and agrochemicals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.