5 Best Sugar Stocks in India

sugar stocks

Sugar Stocks in India: An Overview

Sugar stocks in India refer to the stocks of the companies that cultivate, process and market sugar. Diversifying your stock portfolio by investing in the best sugar stocks is a great idea given the fact that India is the largest producer and second-largest exporter of sugar. 

The Popularity of Sugar Stocks in India

What can be the reasons for the popularity that the sugar stocks in India enjoy? Investors prefer to invest in stocks from the sugar stocks list because the sugar industry is a crucial part of the Indian economy and the demand for sugar increases proportionately with the population. Governmental support, expanding product lines of the sugar companies and diversification into ethanol production in tandem will contribute to the growth of the sugar industries and their stocks too. 

Though sugar stocks in India are highly volatile, they still find a lot of takers. Use these simple factors to zero in on the best sugar stocks on the sugar stocks list. 

The 5 Best Sugar Stocks in India:

1. EID Parry (India) Limited (EID Parry)

The biggest sugar company in India, with its headquarters in Chennai, has a net profit of Rs. 1,656Cr and a net cash flow (CF) of Rs. -501 crores. The company, established in 1975, has a Piotroski score of 4 and has now diversified into sugar products such as low glycemic sugar, organic and industrial sugar.

The earnings per share (EPS) of this top stock on the sugar stock list is pegged at Rs. 11.09 and the face value is 1. The 52-week highs and lows of the company with six sugar plants and one distillery are between Rs. 452. 35 and Rs. 663.

2. Shree Renuka Sugars Ltd (SRSL)

SRSL with a net profit of Rs.-135.73 crores and an EPS of 0.64 paise operates 8 sugar mills in Maharastra, Karnata and Uttar Pradesh. The company produces sugar, ethanol and power and has a Piotroski score of 6 and the 52-week low and high of the stocks lie between Rs.39.3 and Rs. 57.25.

Recognised as the largest exporter of refined sugar, the net cash flow of the company is Rs.856.65 and the face value of the stock is 1. 

3. Triveni Engineering and Industries Limited (Triveni):

Triveni operates 7 state-of-the-art sugar factories in Uttar Pradesh, boasting a net profit of Rs. 1924.01 crores and EPS of Rs.80.08. The company’s stocks, with a face value of 1 and 52 weeks low/high between Rs. 261.10 and Rs. 416.50, produce refined, white and pharmacy-grade sugars in addition to ethanol and potable alcohol.

The company consists of both sugar and engineering segments and its stock has a steady Piotrwski score of 6 and a net CF of Rs. 856.65 crores

4. Balrampur Chini Mills Limited (BCML)

Established in the year 1975, BCML has a net profit of Rs.275.53 crores and an EPS of Rs. 13.51. The company, with its headquarters in Kolkata, has a net CF of Rs. 452.92 crores and a Piotroski score of 5.

The company operates 10 sugar mills in Uttar Pradesh. The face value of the stock is 1 and the 52-week low and high are between Rs. 343.50 and Rs. 485.90.

5. Bajaj Hindusthan Sugar Limited (BHSL):

Based in Mumbai, BHSL is the country’s leading manufacturer of sugar and Ethanol. Its net profit is Rs. -91.53 crores and the net CF is Rs. 659.74. BHSL operates 14 sugar plants with an EPS of Rs.0.71 and a face value of 1. The 52-week low and high of the company. which has a crushing capacity of 136,000 tonnes of canes per day, are between Rs. 13.15 and Rs. 40.5 and the Piotroski score is 4. 

Here is a quick overview of the significant financials of the best sugar stocks in India:

 

EID PARRY

SRSL

TRIVENI

BCML

BHSL

Dividend Yield (%)

1.52

1.19

0.94

0.80

0.31

Return on Equity (ROE) (%)

14.90

-27.9 %

17.76

12.90

-2.96

Return on Capital Employee (ROCE(%)

 

27.36

8.91 %

17.53

10.42

0.78

Market Cap (in crore)

Rs.10787.74 

Rs. 8929.01

Rs.7538.85

Rs.7552.48

Rs.4081.17

Book Value

Rs.374.78

Rs. 0.65

Rs.122.95

Rs.156.03Rs.33.12

Total Debt (in crore)

Rs.1,191

Rs.5,568.65

Rs.911 

1879.614,303.29

Debt to Equity

0.13

-6.3

0.15

0.17

0.97

Stocks P/E

12.56

-18.93

3.64

13.53-46.95

Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.

Sugar Stocks in India: Factors to Ride the Sugar Wave

Here is a list of factors that you need to consider before investing in sugar stocks in India:

  • Understand the market conditions which can impact the price of the sugar industry and subsequently, the price of the sugar stocks in India
  • Assess the financial strengths of the sugar company 
  • Keep an eye out for the governmental policies and subsidies that can influence the prices of sugar stocks
  • Choosing a market leader in the sugar industry will augur well for your investments

Final Thoughts

Who can make use of this sweet opportunity and add the best sugar stocks in India to their portfolio? Anyone! If you wish to diversify your stock portfolio with stocks that have a high growth potential and stable profits, you should look at sugar stocks in India. 

Remember that any stock investment carries an inherent financial risk and sugar stocks in India are not in any way different. Research thoroughly and make your decision based on the financial metrics given above. Weigh the risks with the rewards that you might get if you invest in these best sugar stocks.

However, if you are still in a dilemma about whether or not to invest in sugar stocks in India, consult with financial experts like LenDen, who will guide you in the right direction. 

Frequently Asked Questions (FAQs)

1.List the risks associated with Investing in the best sugar stocks in India.

In addition to the financial risks, sugar stocks in India are affected by low sugar production due to unfavourable weather, sugar price fluctuations and withdrawal of governmental subsidies. 

2. How will the changing diet preferences of the Indian population affect the growth prospects of the sugar stocks in India? 

The significant shift to sugar-free or sugar-less products will affect the profitability of the sugar industries and subsequently the sugar stocks in India in the long run. However, this can be offset if the sugar companies innovate, find healthier alternative sugar products, or tap into the global export markets.  

3. How will fluctuations in the global prices of sugar cause an impact on the sugar stocks in India? 

Due to the interconnected nature of the sugar market, the sugar stocks in India will be impacted by any global sugar price fluctuations. High international prices will increase the profits of Indian sugar companies while the converse is also true. When the companies concentrate more on exports, the demand and prices in the local markets increase. All these fluctuations will have an impact on the stock market sentiments of the investors.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.

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