Ethanol, a clean-burning biofuel derived from sugarcane, corn, or other biomass, is gaining traction as a renewable alternative to fossil fuels. This shift towards biofuels is driven by a confluence of factors including environmental concerns, energy security, and government support. Investing in ethanol stocks offers a potential way to capitalize on this growing trend. In this article, let’s find out what are the top ethanol stocks to buy in 2025?
What are Ethanol Stocks?
Ethanol stocks are shares in companies that make or use ethanol as fuel. The Indian ethanol market has grown a lot, reaching $6512.27 million in 2023 and expected to grow 8.84% annually until 2029. Bio-ethanol held the major share of 87.34% in the market in 2023.
This growth is driven by government actions like the E20 compliance for new vehicles from 2023 and promoting Flex Fuel Vehicles. Ethanol blending in fuel increased from 1.53% in 2013-14 to 15% in 2024, with a goal of 20% by 2025, showing strong government support for ethanol use in fuel.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Top 10 Ethanol Stocks to Buy in 2025
The Indian ethanol industry is booming, driven by government blending mandates and a growing focus on clean energy. Here are few of the top ethanol stocks to buy for investment in 2025:
- Shree Renuka Sugars Ltd.
- EID-Parry (India) Ltd.
- Balrampur Chini Mills Ltd.
- Triveni Engineering & Industries Ltd.
- Bajaj Hindusthan Sugar Ltd.
- Magadh Sugar & Energy Ltd.
- Kothari Sugars and Chemicals Ltd.
- Sakthi Sugars Ltd.
- Rajshree Sugars & Chemicals Ltd.
- Indian Sucrose Ltd.
Overview of Top Ethanol Stocks in India
The Indian ethanol sector is experiencing a surge, fueled by government policies and the growing demand for clean energy alternatives. The top 10 leading ethanol stocks to buy for investment in 2025:
1. Shree Renuka Sugars Ltd.:
The undisputed king of Indian ethanol production, Shree Renuka boasts a robust production capacity and a continuous push towards expanding their green energy portfolio. They are a major contributor to the government’s Ethanol Blending Program.
2. EID-Parry (India) Ltd.:
A diversified player with a strong presence in both sugar and ethanol sectors, EID-Parry is actively increasing its ethanol production capacity to keep pace with the growing demand.
3. Balrampur Chini Mills Limited:
A frontrunner in sugar production, Balrampur Chini has made significant investments in ethanol production. Their focus on innovation and efficiency positions them well to capitalise on the expanding ethanol market.
4. Triveni Engineering & Industries Ltd.:
Primarily known for sugar manufacturing, Triveni Engineering has strategically entered the ethanol space. While they experienced a decline in net profit in FY 2023-2024, their commitment to ethanol production suggests potential for future growth.
5. Bajaj Hindusthan Sugar Ltd.:
A prominent player in both sugar and ethanol production, Bajaj Hindusthan has a nationwide presence and is known for its large-scale operations.
6. Magadh Sugar & Energy Ltd.:
Renowned for their operational efficiency, Magadh Sugar & Energy is actively expanding their ethanol segment, making them a strong contender in the market.
7. Kothari Sugars and Chemicals Ltd.:
An established sugar producer, Kothari Sugars is strategically increasing its focus on ethanol production to diversify its revenue streams.
8. Sakthi Sugars Ltd.:
A South Indian sugar producer, Sakthi Sugars is making significant strides in expanding its ethanol capacity, positioning itself for future growth.
9. Rajshree Sugars & Chemicals Ltd.:
Recognizing the potential of ethanol, Rajshree Sugars is investing in ethanol production to diversify its revenue streams and stay competitive.
10. Indian Sucrose Ltd.:
A rising player in the sugar industry, Indian Sucrose is placing a strong emphasis on ethanol production, making it a company to watch in the developing ethanol market.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Latest Performance of Top Ethanol Stocks
*(As on March 3, 2025)
Overview of the Ethanol Industry in Indian Market
The Indian ethanol market has experienced significant growth in recent years, reaching a size of $6,512.27 million in 2023 and projected to grow at a CAGR of 8.84% until 2029 to $10,456.98 million. This growth is largely propelled by government initiatives, such as the introduction of E20 compliance for new vehicles from 2023 and the promotion of Flex Fuel Vehicles.
These efforts have led to a notable increase in ethanol blending percentage, rising from 1.53% in 2013-14 to 15% in 2022. The government aims to achieve a blending target of 20% by 2025, indicating a strong commitment to promoting ethanol usage in the country’s fuel industry. The rising focus on sustainability with biofuel demand, favourable government policies, and the Ethanol Blended Petrol (EBP) Programme will continue to drive this market.
Advantages and Risks Associated with Investing in Ethanol Stocks
The Indian government’s push for clean energy and blending mandates have made ethanol stocks an attractive investment option. However, like any investment, it’s crucial to understand both the potential benefits and the inherent risks involved.
Advantages:
- Strong Government Support: India targets 20% ethanol blending with petrol by 2025, boosting demand for domestic ethanol producers.
- Renewable Energy Play: Ethanol, a renewable alternative to fossil fuels, sees rising demand amid growing climate and energy security concerns.
- Hedging Against Oil Price Volatility: Ethanol prices typically follow crude oil prices, making ethanol more profitable and a hedge against rising oil costs.
Risks:
- Commodity Price Volatility: Fluctuations in feedstock prices like sugarcane and corn significantly affect ethanol producers’ margins.
- Government Policy Changes: Changes in policies such as blending mandates, subsidies, or import duties can negatively impact ethanol demand and profitability.
- Competition: Increasing competition, particularly from new sugar mills, can reduce prices and profitability in the ethanol industry.
Why should you invest in Ethanol stocks in India?
Investing in ethanol stocks in India is a lucrative opportunity due to the country’s growing focus on renewable energy sources and reduced reliance on fossil fuels. The Indian government has implemented policies to increase ethanol production and blending in auto fuels, making it an attractive investment option.
Ethanol is a clean-burning fuel that emits fewer greenhouse gases and pollutants, making it a sustainable choice for the future. Additionally, the demand for ethanol is expected to rise significantly in the coming years, driven by the increasing use of biofuels and the growth of the automotive sector.
How to Start Investing in Ethanol Stocks?
With SMC Global Securities, investing in ethanol stocks is easy. Follow these steps:
- Visit SMC Global Securities official website or download the SMC ACE app.
- Sign up for a free demat account.
- Start investing in ethanol stocks with confidence.
Conclusion
Investing in ethanol stocks can offer attractive opportunities, but careful consideration of both the advantages and risks is essential. With the ethanol sector poised for growth in India, SMC Global Securities can be your trusted partner on your investment journey. SMC Global Securities offer a streamlined account opening process, comprehensive research resources, a user-friendly trading platform, and dedicated support to empower you to make informed decisions and invest confidently in ethanol stocks.
Reference:
https://www.outlookbusiness.com/news/ethanol-market-in-india-set-to-hit-new-highs-news-416813
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
