Hello dear readers, today we’ve created for you the Best 5 sugar stocks in India on our blog. Our blog will discuss the top five Sugar stocks from companies that contribute to the capabilities of the nation.
India is the largest sugar producer and consumer investing in the best sugar companies is a good opportunity for investors to capitalise on the industry’s future growth potential.
This industry is experiencing issues because of the current policies of the Government regarding Sugar industry. Since June 2022 it has been announced that the Government Of India has prohibited exports of sugar to ensure that the country’s consumption is met and to divert sucrose into the production of ethanol.
This year, the government will allow sugar mills to use additional B-heavy molasses into the production of ethanol.
The last month it was announced that the Central government voted to raise the Fair and Remunerative Price (FRP)which is the minimum amount that mills have to pay sugarcane farmers – from Rs 25 to 350 per quintal for the 2024-25 season that will begin in October 2024.
Sugar Industry in India- Overview
Within this segment, we’ll look at the growth of the sugar industry in India and how India is in the global sector.
The Indian sugar industry is the second largest agricultural sector, generating about 12% of the total employment opportunities for rural India. Around 525 mills produced over 30 million tonnes of sugar during the prior crushing season, which lasted from October through April. It is the largest sugar producer in the world and surpasses Brazil.
India is the world’s largest sugar production. India is the world’s biggest sugar production. It produced almost 37 million metric tonnes of sugar by 2022. It provides a livelihood for sugarcane farmers living in rural areas. It also employs more than 500 thousand people in sugar mills.
Additionally, the value of that sugar harvest was around 800 billion Indian rupees by 2020. Alongside being the world’s largest producer of sugar, India was the world’s third largest sugar exporter in 2022. India is expected to produce about 36 million metric tonnes of sugar during the fiscal year 2022/2023.
It’s no shock that India is among the top sugar consumers in the world. Consumption of ice cream as well as confectionery, baked goods, mithai (Indian sweets) as well as processed foods.
While the sugar industry’s growth prospects look promising, investors must be mindful of the risks, like fluctuations in commodity prices and changes to the regulatory framework, before investing in the best sugar stocks.
Top 5 Sugar Stocks in India
1. E.I.D.-Parry (India) Ltd
E.I.D.-Parry (India) Ltd is an Indian company that produces sweeteners as well as nutraceuticals. The business areas of the company include nutrients and related crops protection, business sugar, co-generation distillery, nutraceuticals, and co-generation. The goods offered by the company comprise a range of sweeteners such as refined sugars, white sugar high-quality pharmaceutical sugars, brown sugar jaggery, low-GI sugar and many more, all of which are available in bulk as well as retail packs.
Nutraceuticals and sugar are sold in both the foreign and domestic markets. The company sells its products to institutional, trade and retail clients through various channels, such as distributors, direct sales, as well as internet marketing. It provides a range of industries, including confectionary, pharmaceuticals soft drinks, beverage producers, dairy and food additives, in addition to.
E.I.D.- Parry (India) Ltd’s ratio of P/E for the industry is 14.38 and its ROE is 6.99 percent. The company’s revenue has increased by 35243.80 Cr in March 2023 from 23521.06 Cr in March 2022. Its market capitalization stands at 11062.01 Cr.
It is vital to inform readers about the shareholding percentage. The company is home to 42.23 percent stocks that are reserved for promoters 8.85 percent for foreign institutions-FII, 11.03% for mutual funds Retail and other are 37.05 percent, and the other domestic institutions have 0.84 percent.
2. Shree Renuka Sugars Ltd
Shree Renuka Sugars Ltd is an internationally recognized bioenergy and agricultural company. It’s involved in the distribution and production of power, sugar and alcohol. Narendra along with Vidya Murkumbi started the company in 1998.
The company is among India’s top producers of renewable energy and sugar. Shree Renuka Sugars owns the famous sugar brand Madhur that serves all markets in Europe as well as Africa. It also produces ethanol and bio-fertilizers.
Shree Renuka Sugars Limited’s market capitalization was more than Rs10,000 crore as of 16 December 2023. Renuka Sugars’ share price has risen by more than 290% in the past three years.
The company operates eight sugar mills within the states that are rich in sugarcane, including Uttar Pradesh, Maharashtra, and Karnataka.
The company lost in the amount of Rs135.76 million in the FY23. The company’s revenue was increased by 9020.75 Cr in March 2023 from 6432.63 Cr in March 2022. The company is listed with the market cap in the range of 9503.71 Cr.
The company has 62.48 percent stocks dedicated to promoters 3.36 percent for foreign institutions-FII, 0.08% for mutual funds, Retail and others 24.07 percent, and other national institutions 10.01 percent.
3. Balrampur Chini Mills Ltd
Balrampur Chini Mills Ltd is one of the largest sugar factories located in India. It also boasts one the biggest supply chains in the country. The company, which was founded in the year 1975, started out as an industrial sugar producer. It was one of the first sugar companies to expand into co-generation and distillery operations.
Balrampur Chini Mills Limited’s current operations cover a variety of industries, which include sugar production and cogeneration of power. At present, it is working with alcohol, molasses the ethanol, as well as other agricultural inputs.
The company was established in the year 1975, with an 800-tonne daily capacity unit. The factory is now running at 12,000 tonnes per day because of the innovative scale-up and scoping method. The FY 23 fiscal year saw the company crushed 93.66 million tons of sugarcane, and produced 8.83 tonnes of sugar.
Balrampur Chini mills Ltd’s P/E ratio stands at 14.98, ROE is 9.78 percent. The company’s revenues fell by 4665.86 millions in March 2023, compared to 4846.03 million in the month of March. The company’s market capitalization is at 7984.23 Cr.
Balrampur Chini Mills Ltd has 42.9 percent of its shares are reserved for promoters. 11.27 percent for foreign institutions, 18.81% for mutual funds, Retail and Partners 25.07 percent, and for other institutions in India 1.95 percent.
4. Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd is an Indian company that produces sugar and offers the engineering services for power transmission as well as wastewater and water treatment and defense. Sugar and Allied Businesses and Engineering Businesses are two of Triveni’s divisions. It manufactures the white crystal sugar, and has around seven manufacturing facilities located in Uttar Pradesh. Molasses that is produced in the process of sugar production is the main raw material for the process of making alcohol, ethanol, and extra-neutral. The company’s power transmission business is focused on low-speed high-speed and specialty gearboxes and gears, which includes delivery to original equipment makers (OEMs) and aftermarket services, as well as retrofitting gearboxes to meet the requirements of the power industry and other industrial sectors, and also the military.
The Triveni Engineering and Industry Ltd’s ratio of P/E is 21.69 and its ROE is 86.83 percent. The company’s revenue was increased by 5616.83 Cr in March 2023 from 4290.94 Cr in March 2022. The company is listed with an estimated market capitalization at 7955.85 Cr.
Triveni Engineering and Industries Ltd has 60.98 percent of its profits dedicated to promoters and foreign institutions- FII 4.91 percent, Mutual funds 8.25%, Retail and other 25.52 percent, and other national institutions 0.35 percent.
5. Piccadily Agro Industries Ltd
Piccadily Agro Industries Ltd is an Indian company that has its headquarter in India that manufactures distilleries and sugar products. Distillery and sugar are among the company’s business areas. Molasses, sugar, bagasse, and power are only a few products offered by this segment. The Distillery segment’s merchandise includes malt, liquor carbon dioxide gas and alcohol.
Its Sugar Mill produced about 667800 quintals of sugar as well as 318982 quintals of Molasses. The Distillery division produced approximately 58,40,450 bottles of Malta and around 9121 barrels of Marshal Rum for the Country category of liquor.
Piccadily Industries Ltd’s P/E ratio is 67.69 as well as the ROE is 11.3 percent. It has set aside 70.97 percent for promoters, mutual funds 0%, foreign institutions- FII zero, 28.93% for Retail and others, as well as other institutions in the country 0.1 percent.
Conclusion
Exports of sugar have been prohibited since June 2022 to ensure local demand and to allocate sucrose to the production of ethanol. The Government is contemplating allowing sugar mills to use surplus B-heavy molasses to boost the production of ethanol in this year. It was decided by the Central Government consented to increase the Fair and Remunerative amount (FRP) the amount that mills have to pay sugarcane farmers by a sum of Rs 25 to 334 per quintal in the 2024-25 season that starts in the month of October 2024. The Government’s changes will determine what role they play in Sugar Stocks in India, the time will reveal.
We believe that this blog has provided you an understanding of the sugar industry and top Indian enterprises’ stock prices. We don’t recommend any kind of selling or buying on this blog. Always consult your Financial advisor before investing. For the most up-to-date information about the upcoming Stocks visit our website.
Before taking any decision regarding this We suggest to our potential readers consult with their financial advisor.
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Disclaimer We do not advise any selling or buying through this blog. Always consult your Financial advisor before investing.
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Frequently Asked Questions
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What makes the sugar industry important to India’s economy?
Sugar production is vital for India’s economy since it is the biggest sugar producer and consumer. It has a significant impact on rural employment, providing more than 12 percent of all job jobs in rural India. The sugar production in India is greater than 37 million tons of metric tonnes annually and is a crucial industry that can contribute to the growth of agriculture and stability in the economy.
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What are the current policies of the government affecting sugar production in India? Indian sector of sugar?
Recently in the last few months, in recent months, the Indian government has introduced measures to limit sugar exports as well as ensuring that the country has enough supply and encouraging ethanol production from sugarcane. Its fair as well as Remunerative Price (FRP) of sugarcane growers has been raised to Rs.340 per quintal in the 2024-25 season which will begin in October 2024. These policies are designed to stabilize prices and aid farmers.
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Who are the most powerful players in the sugar industry of India?
The most prominent corporations in India’s sugar sector include:
- E.I.D.-Parry (India) Ltd: Known for a variety of sweeteners and nutraceuticals.
- Shree Renuka Sugars Ltd: Major producer of sugar as well as power and ethanol, with a substantial footprint across Maharashtra, Karnataka, and Uttar Pradesh.
- Balrampur Chini Mills Ltd: One of India’s largest sugar producers, operating across multiple states, and diversifying into cogeneration and distillery.
- Triveni Engineering and Industries Ltd: Producer of sugar and engineering solutions focusing on the production of ethanol and transmission of power.
- Piccadily Agro Industries Ltd: Engaged in sugar distillery and production operations that produce a variety of sugar products as well as Ethanol.
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How do you know the finance indicators and the market positions of these leading sugar companies?
- E.I.D.-Parry (India) Ltd: P/E ratio of 14.38, ROE of 6.99 percent, and an market capitalization in the range of Rs11,062.01 Cr.
- Shree Renuka Sugars Ltd: P/E ratio not stated, ROE not specified, with an estimated market capitalization of Rs9,503.71 Cr.
- Balrampur Chini Mills Ltd: P/E ratio of 14.98, ROE of 9.78 for the market cap at Rs7,984.23 Cr.
- Triveni Engineering and Industries Ltd: P/E ratio of 21.69, ROE of 86.83 percentage, and an estimated market capitalization at Rs7,955.85 Cr.
- Piccadily Agro Industries Ltd: P/E ratio of 67.69, ROE of 11.3 percentage, with an unspecified market cap.
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What are the issues and the future for investors in the sugar sector of India?
Investors who invest in the Indian sugar market should take into account the potential risks of fluctuations in commodity prices as well as regulatory changes and the effect of policies by the government on ethanol production and exports. Despite these issues however, the sector has potential for growth driven by growing domestic consumption as well as potential expansions into renewable energy industries such as the production of ethanol.
