Why are sugar stocks like Dhampur, Mawana, Dwarikesh and Triveni rallying so hard in the last few days?

Number of factors appear to be working for sugar. The sugar cycle year (Oct-Sep) is likely to be another solid year for exports. Sugar continues to be in a sweet spot with most of the stocks mentioned by you rallying up to 18% on strong outlook. Essentially, it is about a favourable mix of ethanol towards heavy juice based ethanol which is more profitable for the producers. In addition, sugar realisations have also been at record levels

Sugar companies are expected to report record operating profit margins in the Mar-22 quarter. In addition, the demand for Ethanol is expected to grow at 15% CAGR over the next 8 years. This is largely on the back of the government mandate of 20% ethanol blending in petrol by the year 2025. Sugar sector is likely to grow at 25% CAGR in the coming years and the boost will come from the distillation capacities coming on stream from FY23 onwards.