The Indian Government’s push for green energy and reducing the import bill incurred on Crude oil, has promoted the use of hybrid and flex fuel vehicles in the country. This has led to higher requirements of ethanol. Ethanol, which is derived from Sugarcane, has brought focus on the best sugar stocks in India 2023.
The Government has set a target for 20% ethanol blending in fuel, leading to more diversion of sugarcane for this purpose rather than simply for sugar production. Companies that operate in the sugar industry are gaining more traction as the Government takes special measures to promote higher production of ethanol.
India stands among the top three in the world in highest sugar production. Moreover, Sugar industry is the second largest agro-based industry in our country.
Sugar export quota by the Government was increased to 60 lakh metric tonne (LMT) for the sugar season 2022-2023. Out of this quota, nearly 55 lakh tons of contracts for Sugar export have already been entered into so far till January 2023. This is a significant source of foreign currency into the country, helping to narrow the Current Account Deficit. Thus the Indian Government is encouraging these sugar exports.
All these factors make sugar stocks in India are a very attractive investment avenue.
Best Sugar Stocks in India 2023
Let us look at the list of some of the best sugar stocks in India, 2023, to help us decide which ones are good investment opportunities. We will make our decision based on financial ratios since we use Fundamental Analysis for long term investment decisions.
Net profit margin, earnings per share, price to earnings ratio, market capitalization, change in revenue and net profit, etc. are some of the fundamental analysis parameters we will take into consideration to select best sugar stocks for long term investments.
|Name of Stock||Ticker (on NSE)||Market Capitalization||EPS (Rs)||PE Ratio|
|Shree Renuka Sugars||RENUKA||Rs. 9908.12 Cr||0.09||-202.25|
|Triveni Engineering & Industries||TRIVENI||Rs. 6668.81 Cr||6.05||3.64|
|EID Parry (India)||EIDPARRY||Rs. 9253.99 Cr||0.89||27.23|
|Balrampur Chini Mills||BALRAMCHIN||Rs. 7650.09 Cr||2.18||24.35|
|Dalmia Bharat Sugar & Industries||DALMIASUG||Rs. 2784.72 Cr||8.05||15.37|
|Dwarikesh Sugar||DWARKESH||Rs. 1698.48 Cr||0.56||14.42|
|Dhampur Sugar Mills||DHAMPURSUG||Rs. 1424.01 Cr||6.93||11.37|
|Bannari Amman Sugars||BANARISUG||Rs. 3455.13 Cr||32.58||29.33|
|Avadh Sugar & Energy||AVADHSUGAR||Rs. 903.53 Cr||8.86||12.48|
|DCM Shriram Industries||DCMSRIND||Rs. 612.42 Cr||1.27||13.71|
Shree Renuka Sugars Limited is a agribusiness and bio-energy company. It operates eleven mills globally out of which seven are in India. It has integrated ethanol and power co-generation capacity and two large port based sugar refineries in India. The Company’s products include sugar, ethanol, power, and organic manure.
Shree Renuka Sugars posted Revenue at Rs. 2483.5 crore, while the Net Profit at Rs. 19.40 crore in the October-December quarter of FY23.
Triveni Engineering & Industries Ltd
Triveni Engineering & Industries Limited is an Indian company which operates in two segments, viz. Sugar & allied businesses and Engineering business. The Sugar & allied businesses segment focuses mainly on sugar production and alcohol distillation. White crystal sugar is produced by the company in seven manufacturing plants across Uttar Pradesh.
Triveni Engineering & Industries posted Revenue at Rs. 1657.37 crore, while the Net Profit at Rs. 146.18 crore in the October-December quarter of FY23.
EID Parry (India) Ltd
E.I.D – Parry (India) Limited focuses majorly on manufacturing sugar and nutraceuticals. The company also manufactures and markets pharmaceutical sugar used as an input in the Pharma industry. Manufacturing of sugar takes places in nine sugar plants scattered across southern part of the country.
E.I.D – Parry (India) posted Revenue at Rs. 727.42 crore, while the Net Profit at Rs. 15.78 crore in the October-December quarter of FY23.
Balrampur Chini Mills Ltd
Balrampur Chini Mills Limited is a sugar manufacturing company that also carries out ethanol production. The allied businesses of the company comprise of manufacturing and marketing of ethanol, ethyl alcohol, agriculture fertilizers and the generation and sale of energy. Ethanol produced by the company is sold to Oil Marketing Companies (OMCs).
Balrampur Chini Mills posted Revenue at Rs. 981.16 crore, while the Net Profit at Rs. 44.41 crore in the October-December quarter of FY23.
Dalmia Bharat Sugar and Industries Ltd
Dalmia Bharat Sugar and Industries Limited carries out manufacturing of sugar, industrial alcohol, refractory products, and power generation. The company is also use the generated power for captive consumption. Ethanol production is also an essential part of the business. The company also manufactures organic manure and hand sanitizers.
Dalmia Bharat Sugar and Industries posted Revenue at Rs. 599.99 crore, while the Net Profit at Rs. 64.91 crore in the October-December quarter of FY23.
Dwarikesh Sugar Ltd
Dwarikesh Sugar Industries Limited operates primarily in three segments, namely, sugar, co-generation, and distillery. The company has processing capacity of nearly 21500 tons of sugarcane each day. The company’s manufactures approximately 130 kilolitres of industrial alcohol each day and generates more than 91 megawatts through renewable sources of energy. The company has three sugar plants in Uttar Pradesh.
Dwarikesh Sugar posted Revenue at Rs. 383.84 crore, while the Net Profit at Rs. 10.52 crore in the October-December quarter of FY23.
Dhampur Sugar Mills Ltd
Dhampur Sugar Mills Limited focuses majorly on manufacturing and marketing of Sugar, but also carries out power generation and manufacturing of chemicals. It also produces fuel ethanol, ethyl acetate, alcohol, alcohol-based chemicals, hand sanitizers, and bio-fertilizers.
Dhampur Sugar Mills posted Revenue at Rs. 643.51 crore, while the Net Profit at Rs. 46.01 crore in the October-December quarter of FY23.
Bannari Amman Sugars Ltd
Bannari Amman Sugars Limitedmanufactures sugar, industrial alcohol, granite products, and also generates power. The company operated five sugar factories with total sugar crushing capacity of 23700 metric tonnes (MT). Meanwhile, power generation capacity stands at more than 129 megawatts (MW). Three sugar factories of the firm are operating in Tamil Nadu while the remaining two operate in Karnataka.
Bannari Amman Sugars posted Revenue at Rs. 932.36 crore, while the Net Profit at Rs. 40.85 crore in the October-December quarter of FY23.
Avadh Sugar & Energy Ltd
Avadh Sugar & Energy Limited primarily manufactures and markets sugar, molasses and bagasse. The firm’s sugar mills are located in Uttar Pradesh with crushing capacity if nearly 31200 tons of cane each day. The company also produces and sells ethanol through two distilleries of aggregate capacity of 200 kilo litres per day. The company also has a co-generation capacity of 74 megawatts (MW).
Avadh Sugar & Energy posted Revenue at Rs. 674.55 crore, while the Net Profit at Rs. 17.74 crore in the October-December quarter of FY23.
DCM Shriram Industries Ltd
DCM Shriram Industries Limited is a company with a diverse portfolio that includes sugar, alcohol, organic and inorganic chemicals, co-generation of power, drug intermediates, engineering projects, etc. The sugar segment of the company carries out activities such as manufacturing of pharmaceutical grade sugar, sugarcane research farm, setting up distillery, etc. The company provides inputs for oil and gas, logistics, and defense sector.
DCM Shriram Industries posted Revenue at Rs. 574.33 crore, while the Net Profit at Rs. 11.03 crore in the October-December quarter of FY23.
Above, we have summarized information regarding the top 10 best sugar stocks in India. Investing in sugar stocks that are currently in focus will surely lead to good profitability on your investment.