Add some sweetness to your investing portfolio in 2024 with sugar stocks! The sugar market is one to watch because of rising global demand and a move towards sustainable sweeteners. It is attracting the attention of savvy investors due to the growing demand for sweeteners worldwide.
What are Sugar Stocks?
Sugar stocks represent shares of such companies that cultivate, refine, and distribute sugar and its derivative products. Their influence extends beyond local markets, presenting a compelling avenue for diversification on a global scale.
Top 10 Sugar Stocks in India to Invest in 2024
Here is a list of the top 10 sugar stocks in India to Buy in 2024:
- Shree Renuka Sugars Ltd
- E I D-Parry (India) Ltd
- Balrampur Chini Mills Ltd
- Triveni Engineering and Industries Ltd
- Bajaj Hindusthan Sugar Ltd
- Dalmia Bharat Sugar And Industries Ltd\
- Bannari Amman Sugars Ltd
- Piccadily Agro Industries Ltd
- Dhampur Sugar Mills Ltd
- Dwarikesh Sugar Industries Ltd
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Overview of Best Sugar Stocks to Buy in India
Shree Renuka Sugars Ltd
Shree Renuka Sugars Ltd, an Indian multinational agribusiness and bio-energy corporation, is a best stock in sugar industry. With a manufacturing capacity of 2.4 million tons and a global reach, it reported a profit revenue of INR 2564 crore in FY2023.
E I D-Parry (India) Ltd
E I D-Parry (India) Ltd. produces a lot of biopesticides in addition to sugar, which helps support sustainable agriculture. It has demonstrated a dedication to environmentally friendly methods by cutting its water consumption in operations by 15% while maintaining a strong focus on environmental responsibility.
Balrampur Chini Mills Ltd
Balrampur Chini Mills is one of India’s top integrated sugar production firms. Across Uttar Pradesh, it runs several sugar mills with a significant daily output capacity of 76,500 metric tonnes of sugar. The stock exchange-listed company has exhibited solid financial success, with a total income of INR 4,665 crore reported in FY2023.
Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd. is an Indian industrial conglomerate with a diverse focus. The company outperformed its five-year average of 35.55% in ROE, delivering 67.22% in the year that ended on March 31, 2023, which makes it an excellent option for investors.
Bajaj Hindusthan Sugar Ltd
Bajaj Hindusthan Sugar is a single holding company for sugar products. Along with alcohol, it also creates sugar and power. The company, which operates many sugar mills, saw yearly revenue growth of 13.42%, exceeding its three-year compound annual growth rate of -1.61%.
Dalmia Bharat Sugar And Industries Ltd
With a strong production capacity, Dalmia Bharat Sugar and Industries Ltd, reported a consolidated revenue of INR 13540 crore in the latest fiscal year, underlining its significant presence and contribution to the industry.
Bannari Amman Sugars Ltd
Bannari Amman Sugars Ltd (BASL) y is a strong option as the best stock in sugar industry, having reported a net profit of 48.81 crores in the most recent quarter.
Piccadily Agro Industries Ltd
With operations in several industries, including sugar, Piccadily Agro Industries Ltd. substantially contributes to India’s agricultural scene. The stock has increased by 250.8% in the last six months, and net profit has increased for the last three quarters, from 4.72 Cr to 11.1 Cr (in ₹), with an average growth of 29.1% per quarter.
Dhampur Sugar Mills Ltd
The Dhampur sugar mill became the first in the private sector to create surplus power from cogeneration, which was delivered to the state power system. The company has implemented the typical double sulphation method. Under the Dhampure brand, the company also introduced Sulfur-Free Sugar in 1 kg in 200001.
Dwarikesh Sugar Industries Ltd
Dwarikesh Sugar Industries Ltd produces sugar, ethanol, and electricity. Working with roughly 1.54 lakh farmers, the company cultivates cane on more than 1.17 lakh hectares spread across three regions. The amount of sugarcane that the company acquires is roughly 382 lakh quintals.
WHY SMC
- 20 Lac+ unique clients
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Latest Performance of Top 10 Sugar Stocks in India
|
Company Name |
CMP Rs. | Mar Cap Rs.Cr. | 1Yr return % | ROCE % | CMP / BV | Debt / Eq | ROE % | EPS 12M Rs. | P/E | Div Yld % |
| Shree Renuka Sugars Ltd | 51.2 | 10,898 | 9.64 | 9.41 | 22.75 | 10.44 | 0.00 | 0.64 | 0.00 | 0.00 |
| E I D-Parry (India) Ltd | 601 | 10,664 | 15.11 | 27.4 | 2.88 | 0.18 | 16.2 | 11.09 | 12.4 | 1.58 |
| Balrampur Chini Mills Ltd | 392 | 7,904 | 7.88 | 10.4 | 2.78 | 0.65 | 10.0 | 13.51 | 13.5 | 0.77 |
| Triveni Engineering and Industries Ltd | 358 | 7,839 | 35.00 | 17.5 | 2.24 | 0.31 | 23.3 | 80.08 | 18.5 | 0.91 |
| Bajaj Hindusthan Sugar Ltd | 36.2 | 4,618 | 162.91 | 0.91 | 0.36 | 0.96 | -4.04 | -1.19 | 0.00 | 0.00 |
| Dalmia Bharat Sugar And Industries Ltd | 407 | 3,291 | 18.37 | 12.3 | 4.63 | 0.00 | 10.5 | 10.41 | 11.05 | 0.98 |
| Bannari Amman Sugars Ltd | 2,375 | 2,978 | -14.44 | 11.9 | 2.20 | 0.37 | 9.64 | 114.3 | 19.4 | 0.53 |
| Piccadily Agro Industries Ltd | 317 | 2,988 | 638.23 | 12.8 | 1.86 | 0.67 | 10.2 | 2.62 | 62.3 | 0.06 |
| Dhampur Sugar Mills Ltd | 257 | 1,707 | 20.45 | 15.2 | 1.43 | 0.70 | 16.6 | 22.64 | 12.0 | 1.94 |
| Dwarikesh Sugar Industries Ltd | 84.8 | 1,597 | -4.56 | 15.5 | 2.17 | 0.50 | 14.9 | 5.57 | 14.9 | 2.36 |
Overview of the Sugar Industry in the Indian Market:
The Indian sugar industry, contributing 1.1% to the national GDP and providing widespread employment, thrives on just 2.57% of the gross cropped area. Ranging from large corporations to small listed companies, the sector, backed by government incentives, faces challenges like environmental concerns and competition from alternative sweeteners. Fueled by rising demand and technological advancements, the future of the best stocks in sugar industry appears promising, underscoring its pivotal role in the nation’s economic landscape.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Advantages and Risks Associated with Investing in Sugar Stocks
Best Stocks in the sugar industry can provide investors several benefits.
- By offering a non-correlated asset, sugar stocks lower the total risk of a portfolio.
- Rising urbanisation, population expansion, and shifting consumer tastes will all increase the demand for sugar and related products.
- he sugar industry is a defensive investment option since it is comparatively steady throughout economic downturns.
- There is a chance for long-term capital growth with inexpensive sugar stocks.
- Sugar’s inelastic demand makes it a necessary good, guaranteeing a steady income stream even in an uncertain economic climate.
Investing in sugar stocks also involves risks such as price volatility, competition from alternatives, regulatory changes, weather dependency, global market dynamics, environmental concerns, input cost fluctuations, and debt levels, emphasising the need for careful consideration and extensive research before investing in this sector.
Why Should You Invest in Sugar Stocks in India?
Investing in Indian sugar sector stocks holds promise due to the nation’s significant sugar consumption. With a burgeoning population and rising per capita consumption, domestic demand remains robust.
How do you Start Investing in Sugar Stocks?
By providing a cutting-edge online trading platform, SMC allows you to participate in the sugar market and profit from its volatile price swings. Just familiarise yourself with these brief instructions to go out on this successful journey:
- Go to the official website of SMCtradeonline.com or simply download the app
- Open a free demat account
- Start investing.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Conclusion
The Indian sugar sector stands as a sweet spot for investors, offering promising opportunities fueled by domestic demand, technological advancements, and resilient market dynamics. As the industry evolves, staying informed and conducting thorough research remain crucial to unlocking the sweet rewards of investing in sugar stocks.
References:
https://www.businesstoday.in/markets/stock-picks/story/sugar-stocks-sharekhan-says-lower-ethanol-production-may-hit-fy25-earnings-retains-buy-on-these-4-shares-409070-2023-12-
