The sugar industry is one of the top performing stock market sectors in the Indian economy. The highest sugar consumption country in the world is India. The products used for sugarcane processing are bagasse, molasses, and press mud. All the sugar industries use these products to make ethanol, power, and many other products. Today we are going to discuss the best sugar sector stocks in India.
From the last few months, sugar industry stocks have rallied more than 20%. It all happened because the government is giving double incentives for producing ethanol.
The government is showing a lot of interest in increasing ethanol production because, in the future, ethanol will be used in place of fuel in car engines to reduce air pollution.
Ethanol is an alcohol-based fuel made by fermenting sugarcane juice. It is used to produce drugs, plastics, polishers, cosmetics, etc.
Ethanol is the backbone of the sugar industry. As the petrol price increases day by day the government has decided to increase the combination of ethanol with petrol. Currently, the blending percentage of ethanol with petrol is 8.5%, and the government is targeting to increase the blending percentage of ethanol with fuel to 20% by 2023.
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EID Parry (India) Limited
EID Parry (India) Limited was established in the year 1788, and it is one of the best companies in India. EID Parry Limited has its headquarters in Chennai(Tamilnadu). The company is currently engaged in the business of Sugar and Nutraceuticals.
EID Parry started their first sugar plant at Nellikuppam in 1842. It was the first company in India to perform research and development. The company is part of the Murugappa group. Currently, the company has nine sugar plants in India, and these plants can crush 40000 tonnes of sugarcane per day.
Company Details:
| Founder | M M Murugappan |
| Founded | 1788 |
| Market Cap | Rs 9,025 Cr |
| P/E Ratio | 17.9 |
| ROE | 11.8% |
| ROCE | 27.5% |
| Dividend Yield | 1.08% |
Balrampur Chini Mills Limited
Shri Kamal Nayan Saraogi established Balrampur Chini Mills Limited in 1975. It is one of the largest sugar producers in the world. Currently, the company has ten sugar plants in India, and these plants can crush 75000 tonnes of sugarcane per day. The headquarters of Balrampur Chini Mills Limited is in West Bengal(Kolkata). The company is generating most of its income from the sugar business. The products of Balrampur Chini Mills are sugar, ethanol, alcohol, bagasse, molasses, and power.
Company Details:
| Founder | Shri Kamal Nayan Saraogi |
| Founded | 1975 |
| Market Cap | Rs 9,249 Cr |
| P/E Ratio | 21.9 |
| ROE | 18.8% |
| ROCE | 16.5% |
| Dividend Yield | 0.55 % |
Shree Renuka Sugars Ltd
Shree Renuka Sugars Ltd was one of the largest sugar refiners and ethonal producers in India. The company was established in the year 1998, and the headquarters is in Mumbai(Maharastra).
Shree Renuka Sugar Ltd has six mills and two port-based sugar refineries. Currently, the company can crush 36000 tonnes of sugarcane per day.Shree Renuka Sugar Ltd was engaged in sugar, ethanol, power, biofertilizers.
Company Details:
| Founder | Narendra M. Murkumbi |
| Founded | 1998 |
| Market Cap | Rs 7,248 Cr |
| P/E Ratio | – |
| ROE | – |
| ROCE | 15.7% |
| Dividend Yield | 0 |
Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd was established in the year 1932, and it is one of the largest sugar producers in India. The company manufactures and sells crystal sugar for FMCG companies, pharmaceutical companies, etc. It is also providing sugar under the brand shagun. Currently, the company can crush 60000 tonnes of sugarcane per day, and it is also producing potable alcohol and fuel-grade ethanol.
Company Details:
| Founder | Dhruv Manmohan Sawhney |
| Founded | 1932 |
| Market Cap | Rs 6,496 Cr |
| P/E Ratio | 17.8 |
| ROE | 20.5% |
| ROCE | 19.1% |
| Dividend Yield | 0.65% |
Dalmia Bharat Sugar and Industries
Dalmia Bharat Sugar was established in the year 1951, and it is one of the best companies in India. The company is engaged in manufacturing sugar, ethanol, alcohol, and power generation.
Dalmia Bharat Sugar has five manufacturing units in India. Currently, the company can crush 35000 tonnes of sugarcane per day. The company gets most of the revenue from sugar only. In the future, the company is planning to double the ethanol production.
Company Details:
| Founder | Jaidayal Dalmia |
| Founded | 1951 |
| Market Cap | Rs 3,856 Cr |
| P/E Ratio | 14.2 |
| ROE | 14.7 % |
| ROCE | 14.5% |
| Dividend Yield | 0.63% |
