Top 5 Sugar Stocks in India 2024 after New Govt. Policies

Hi dear readers, today we have come up for you with India’s top 5 Sugar stocks blog. Our blog will cover India’s top 5 Sugar stocks of companies contributing to the Nation’s capabilities. 

India is the world's largest consumer and producer of sugar, and investing in the finest sugar companies provides an appealing chance for investors to capitalize on the sugar industry's long-term development possibilities.

Currently, this industry is facing issues due to the latest Government policies on the sugar industry. Since June 2022, the Government Of India has prohibited sugar exports to ensure domestic consumption and divert sucrose to ethanol production.

This year, government policy is considering permitting sugar mills to put extra B-heavy molasses in ethanol production.

Last month, the Central government decided to increase the Fair and Remunerative Price (FRP)- the minimum price that mills must pay to sugarcane growers - by Rs 25 to Rs 340 per quintal for the 2024-25 season, which begins in October 2024.

 

Sugar Industry in India- Overview

In this section, we will see the sugar industry's growth in India and where India stands globally in this industry.

The Indian sugar business is the country's second-largest agricultural industry, accounting for around 12% of total job opportunities in rural India. Approximately 525 mills generated more than 30 million tons of sugar during the previous crushing season, which ran from October to April. This makes it the world's largest producer, surpassing Brazil.

India has the world's highest sugar production. India has the world's largest sugar production. It generated almost 37 million metric tons of sugar in 2022. It supports the livelihoods of sugarcane farmers in rural areas and employs over 500 thousand workers in sugar mills.

Furthermore, the gross value added from the sugar crop was approximately 806 billion Indian rupees in 2020. In addition to being the leading sugar producer, India was the world's third-largest sugar exporter in 2022. India is estimated to generate approximately 36 million metric tons of sugar in the budget year 2022/2023.

It comes as no surprise that India is one of the world's largest sugar consumers. consumption of ice cream, baked goods, confectionery, mithai (Indian sweets), and processed foods 

Although the sugar industry's development prospects are promising, investors must consider the dangers, such as fluctuating commodity prices and regulatory changes, when investing in the finest sugar stocks.

Top 5 Sugar Stocks in India

 

1. E.I.D.-Parry (India) Ltd

E.I.D.-Parry (India) Ltd is an Indian firm that manufactures sweeteners and nutraceuticals. The Company's business sectors are nutrient and associated business, crop protection, sugar, co-generation, distillery, and nutraceuticals. The Company's goods include a variety of sweeteners, including white sugar, refined sugar, pharmaceutical grade sugar, brown sugar, low GI sugar, jaggery, and others, which are available in bulk and retail packs.

Sugar and nutraceuticals are offered in the domestic and foreign markets. The Company offers its products to trade, institutional, and retail clients using a variety of channels, including distributors, direct sales, and internet marketing. It serves a variety of businesses, including pharmaceuticals, confectionary, beverage and soft drink producers, dairy, and food additives, among others.

E.I.D.- Parry (India) Ltd’s industry P/E ratio is 14.38, and ROE is 6.99%. The revenue of the company increased to 35243.80 Cr in March 2023 from 23521.06 Cr in March 2022. Its market cap is 11062.01 Cr.

It is essential to inform our readers about its percentage of shares. This company has 42.23% stocks reserved for promoters, 8.85% for foreign Institutions-FII, 11.03% for mutual funds, Retail and other is 37.05%, and other domestic institutions are 0.84%

2. Shree Renuka Sugars Ltd

Shree Renuka Sugars Ltd is a renowned agricultural and bioenergy firm. It is involved in the production and distribution of sugar, power, and alcohol. Narendra and Vidya Murkumbi launched it in 1998.

The corporation is one of India's leading producers of sugar and renewable energy. Shree Renuka Sugars owns the historic sugar brand Madhur, which serves the markets of Europe and Africa. It also makes ethanol and bio-fertilizers.

Shree Renuka Sugars Ltd's market capitalization exceeded ₹10,000 crore on December 16, 2023. Renuka Sugars' share price has increased by more than 290% during the last 3 years.

The company runs eight sugar mills in the sugarcane-rich states of Uttar Pradesh, Maharashtra, and Karnataka.

The company suffered a loss of ₹135.76 crore in FY23. The revenue of the company increased to 9020.75 Cr in March 2023 from 6432.63 Cr in March 2022. The company has a market cap of 9503.71 Cr.

This company has 62.48 %  stocks reserved for promoters, 3.36 % for foreign Institutions-FII, 0.08% for mutual funds, Retail and others 24.07%, and other domestic institutions 10.01%.

3. Balrampur Chini Mills Ltd

Balrampur Chini Mills Ltd is a major sugar factory in India. It also boasts one of the largest supply networks in the country. The company, formed in 1975, began as a sugar manufacturer. It was among the first sugar firms in the country to diversify into distillery and co-generation operations.

Balrampur Chini Mills Ltd's current operations span multiple industries, including sugar production and power cogeneration. Currently, it works with molasses, alcohol, ethanol, and other agricultural input products.

The company began operations in 1975 with an 800-tonne-per-day capacity unit. The factory is currently operating at 12,000 tons per day capacity as a result of the novel scaling and scoping approach. During FY 23, the company smashed 93.66 lakh tons of sugarcane and generated 8.83 lakh tons of sugar.

Balrampur Chini Mills Ltd’s P/E ratio is 14.98, ROE is 9.78%. The company's revenue declined to 4665.86 crore in March 2023 from 4846.03 crore in March 2022. The company has a market cap of 7984.23 Cr.

Balrampur Chini Mills Ltd has 42.9% shares reserved for Promoters, 11.27 % for foreign Institutions, 18.81% for mutual funds, Retail and partners 25.07%, and other domestic institutions 1.95%.

 

4. Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is an Indian company that manufactures sugar and provides engineering solutions for power transmission, water and wastewater treatment, and defense. Sugar and Allied Businesses and Engineering Businesses are two of the company's segments. It makes white crystal sugar and has roughly seven manufacturing sites in Uttar Pradesh. Molasses produced during the sugar manufacturing process is the primary raw material used in the synthesis of ethanol and extra-neutral alcohol. Its power transmission business focuses on high-speed and specialist low-speed gears and gearboxes, including supply to original equipment manufacturers (OEMs), aftermarket services, and retrofitting of gearboxes to meet the needs of the power sector, other industrial segments, and the military. 

Triveni Engineering and Industries Ltd’s P/E ratio is 21.69 and ROE is 86.83%. The revenue of the company increased to 5616.83 Cr in March 2023 from 4290.94 Cr in March 2022. The company has a market cap of 7955.85 Cr.

Triveni Engineering and Industries Ltd has 60.98% reserved for promoters and foreign Institutions- FII 4.91%, Mutual funds 8.25%, Retail and other 25.52%, and other domestic institutions 0.35%.

5. Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd is a corporation with its headquarters in India that produces distilleries and sugar goods. Sugar and distillery are two of the company's business segments. Sugar, molasses, power, and bagasse are a few of the goods offered in this category. The Distillery segment's goods include liquor, malt, carbon dioxide gas, and ethanol. 

The Sugar Mill produced about 667800 quintals of sugar and 318982 quintals of molasses. The Distillery section produced roughly 58,40,450 cases of Malta and approximately 9121 cases of Marshal Rum for the Country liquor category.

Piccadily Agro Industries Ltd’s P/E ratio is 67.69, and its ROE is 11.3%. It has reserved 70.97% for promoters, Mutual funds 0%, foreign Institutions- FII 0%, 28.93% for Retail and others, and other domestic institutions 0.1%.

 

Conclusion

Sugar exports have been banned since June 2022 to secure local demand and allocate sucrose to ethanol production. The Government is considering permitting sugar mills to employ excess B-heavy molasses for ethanol production this year. The Central Government consented to increase the Fair and Remunerative amount (FRP) the minimum amount mills must pay sugarcane growers by Rs 25 to Rs 340 per quintal for the 2024-25 season, which begins in October 2024. These changes by the Government will play what roles in Sugar Stocks in India, time will tell.

We trust that this blog has given you insightful knowledge about the Sugar industry and leading Indian enterprises’ Stocks. We do not recommend any type of buying or selling activity through this blog. Always consult your Financial advisor before investing. For all such latest information on upcoming Stocks, keep visiting our website.

Before making any decisions in this regard, we suggest our potential readers to speak with their financial counselor.

For all such latest information on upcoming IPOs, keep visiting our website.

Disclaimer: We do not recommend any type of buying or selling activity through this blog. Always consult your Financial advisor before investing. 

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