Best Sugar Stocks in India (2024): Based on Fundamental Factors

Last Updated on Sep 16, 2024 by Anjali Chourasiya

Sugar sector stocks represent shares of companies involved in producing and selling sugar and related products. India is the second-largest producer of sugarcane and the largest producer of sugar in the world. Given its status, the country plays a crucial role in the global sugar market. This makes investing in sugar stocks an intriguing opportunity for those looking to benefit from the long-term growth prospects of the sugar industry in India.

The Indian sugar industry is not just a major agricultural sector; it is also the second-largest agro-based industry in the country, contributing significantly to the economy and providing around 12% of rural employment. Despite the promising outlook for the industry, investing in sugar stocks comes with its own set of challenges. Fluctuating commodity prices, changes in government policies, and global market dynamics can all impact the performance of these stocks. Keeping an eye on sugar stocks news and industry trends is essential for navigating these risks.

In this blog, we will explore sugar stocks list, factors influencing sugar production and supply, and identify the best sugar stocks in India based on various fundamental factors.

Best Sugar Stocks Based on the Market Cap

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	1Y Return (%)	ROCE (%)
E I D-Parry (India) Ltd	14,390.60	810.50	16.00	56.02	20.33
Balrampur Chini Mills Ltd	11,243.49	557.30	21.04	34.08	20.82
Triveni Engineering and Industries Ltd	10,373.57	473.90	26.25	33.53	17.59
Shree Renuka Sugars Ltd	9,935.79	46.68	-15.84	-11.09	20.97
Piccadily Agro Industries Ltd	7,143.37	757.20	65.09	602.41	37.40
Bajaj Hindusthan Sugar Ltd	4,902.05	38.43	-56.73	48.95	0.71
Bannari Amman Sugars Ltd	4,205.44	3,353.70	27.61	23.78	13.71
Dalmia Bharat Sugar and Industries Ltd	3,755.18	463.95	13.78	8.90	11.61
Avadh Sugar & Energy Ltd	1,475.26	736.95	11.52	11.03	20.32
Dhampur Sugar Mills Ltd	1,390.86	212.71	10.35	-24.29	17.05

Note: The data is from 13th September 2024. The list of top 10 sugar companies in India are derived using the following filters on the Tickertape Stock Screener – 

• Sector: Consumer Staples > Sugar
• Market Cap: Sort from highest to lowest

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Disclosures for aforementioned smallcases.

Overview of the Best Sugar Stocks in India Based on Market Cap

Here is a brief overview of the top 10 sugar mills in India sorted according to their market cap:

E I D-Parry (India) Ltd

Founded in 1788, E I D-Parry (India) Ltd is one of the oldest companies in India and a leading player in the sugar industry. It operates under the Murugappa Group and is involved in the production of sugar, biopesticides, and nutraceuticals. The company is also engaged in the manufacture of alcohol and has investments in renewable energy.

As of the 13th September 2024, the company has a market capitalisation of Rs. 14,390.60 cr. and a stock price of Rs. 810.50. The PE Ratio stands at 16.00. The 1-year return is 56.02%, and the Return on Capital Employed (ROCE) is 20.33%.

Balrampur Chini Mills Ltd

Established in 1975, Balrampur Chini Mills Ltd is one of the largest integrated sugar manufacturing companies in India. The company is engaged in the production of sugar, ethanol, and power generation. It operates 10 sugar mills across Uttar Pradesh. The company’s market cap is Rs. 11,243.49 cr., with a closing price of Rs. 557.30. It has a PE Ratio of 21.04. The 1-year return is 34.08%, and ROCE is 20.82%.

Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd, founded in 1932, is a diversified industrial conglomerate primarily involved in the sugar and engineering sectors. The company operates a number of sugar mills and is also engaged in the manufacturing of gears and water treatment equipment. The market cap of the company is Rs. 10,373.57 cr., with a stock price of Rs. 473.90. The PE Ratio is 26.25. Triveni’s 1-year return is 33.53%, while the ROCE stands at 17.59%.

Shree Renuka Sugars Ltd

Incorporated in 1998, Shree Renuka Sugars Ltd is a leading integrated sugar manufacturing company with a strong presence in ethanol and power generation. It is one of the largest sugar refiners in the world and has operations spread across India and Brazil. The company has a market cap of Rs. 9,935.79 cr. and a stock price of Rs. 46.68. It currently has a negative PE Ratio of -15.84. The 1-year return is -11.09%, and the ROCE is 20.97%.

Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd, established in 1994, is a company engaged in the production of sugar, alcohol, and power. The company has diversified into distilleries and has a significant presence in the agro-based industry in India. The company has a market cap of Rs. 7,143.37 cr. and a closing price of Rs. 757.20. The PE Ratio is 65.09. The 1-year return is 602.41%, and the ROCE stands at 37.40%.

Bajaj Hindusthan Sugar Ltd

Founded in 1931, Bajaj Hindusthan Sugar Ltd is the largest sugar and ethanol manufacturing company in India. It operates 14 sugar mills and has a strong presence in the power and alcohol segments. The company has a market cap of Rs. 4,902.05 cr. and a stock price of Rs. 38.43. The PE Ratio is -56.73. The 1-year return is 48.95%, and the ROCE is 0.71%.

Bannari Amman Sugars Ltd

Bannari Amman Sugars Ltd, established in 1983, is an industrial conglomerate in South India with interests in sugar, alcohol, granite, and power generation. The company operates an integrated business model. The company’s market cap is Rs. 4,205.44 cr., with a stock price of Rs. 3,353.70. It has a PE Ratio of 27.61. The 1-year return is 23.78%, and the ROCE is 13.71%.

Dalmia Bharat Sugar and Industries Ltd

Founded in 1951, Dalmia Bharat Sugar and Industries Ltd is a sugar manufacturing company that also engages in ethanol production and power generation. The company operates five integrated plants. The market cap is Rs. 3,755.18 cr., with a closing price of Rs. 463.95. The PE Ratio stands at 13.78. The 1-year return is 8.90%, and the ROCE is 11.61%.

Avadh Sugar & Energy Ltd

Avadh Sugar & Energy Ltd, part of the KK Birla Group, was established in 2015 and focuses on the production of sugar, ethanol, and power. It operates four sugar mills in Uttar Pradesh. The company has a market cap of Rs. 1,475.26 cr. and a stock price of Rs. 736.95. The PE Ratio is 11.52. It has a 1-year return of 11.03% and a ROCE of 20.32%.

Dhampur Sugar Mills Ltd

Established in 1933, Dhampur Sugar Mills Ltd is one of India’s oldest sugar manufacturing companies. It is engaged in the production of sugar, ethanol, chemicals, and power generation. The market cap of the company is Rs. 1,390.86 cr., and the closing price is Rs. 212.71. The PE Ratio is 10.35. The 1-year return is -24.29%, and the ROCE is 17.05%.

Top 10 Best Sugar Stocks Based on the Net Profit Margin

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	Net Profit Margin (%)
KCP Sugar and Industries Corp Ltd	637.90	56.26	9.64	15.67
Piccadily Agro Industries Ltd	7,143.37	757.20	65.09	13.56
Kesar Enterprises Ltd	162.84	161.55	1.95	13.41
Ponni Sugars (Erode) Ltd	403.48	469.25	8.61	10.67
Magadh Sugar & Energy Ltd	1,193.63	847.05	10.25	10.60
Sakthi Sugars Ltd	451.63	38.00	3.49	9.85
Balrampur Chini Mills Ltd	11,243.49	557.30	21.04	9.22
Dalmia Bharat Sugar and Industries Ltd	3,755.18	463.95	13.78	9.00
Triveni Engineering and Industries Ltd	10,373.57	473.90	26.25	7.48
Bannari Amman Sugars Ltd	4205.44	3,353.70	27.61	6.84

Note: The data is from 13th September 2024. The list of top 10 sugar stocks in India are derived using the following filters on the Tickertape Stock Screener – 

• Sector: Consumer Staples > Sugar
• Net Profit Margin: Sort from highest to lowest

Top 10 Best Sugar Stocks Based on Return on Equity

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	Return on Equity (%)
Sakthi Sugars Ltd	451.63	38.00	3.49	241.77
Kesar Enterprises Ltd	162.84	161.55	1.95	66.48
Piccadily Agro Industries Ltd	7,143.37	757.20	65.09	38.43
Uttam Sugar Mills Ltd	1,297.27	340.15	9.81	20.78
Indian Sucrose Ltd	200.96	115.65	6.14	18.00
Balrampur Chini Mills Ltd	11,243.49	557.30	21.04	16.98
Magadh Sugar & Energy Ltd	1,193.63	847.05	10.25	16.81
KCP Sugar and Industries Corp Ltd	637.90	56.26	9.64	16.31
Triveni Engineering and Industries Ltd	10,373.57	473.90	26.25	14.20
Avadh Sugar & Energy Ltd	1475.26	736.95	11.52	13.35

Note: The data is from 13th September 2024. The list of top 10 sugar stocks in India are derived using the following filters on the Tickertape Stock Screener – 

• Sector: Consumer Staples > Sugar
• Return On Equity: Sort from highest to lowest

Best Sugar Stocks in India for Long-Term (5-yr CAGR)

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	5Y CAGR (%)
Piccadily Agro Industries Ltd	7,143.37	757.20	65.09	150.15
Sir Shadi Lal Enterprises Ltd	207.01	394.30	-22.55	66.90
Gayatri Sugars Ltd	135.30	20.88	19.25	66.74
Magadh Sugar & Energy Ltd	1,193.63	847.05	10.25	55.12
Rana Sugars Ltd	335.24	21.83	11.99	54.25
SBEC Sugar Ltd	310.94	65.25	-25.68	53.13
Triveni Engineering and Industries Ltd	10,373.57	473.90	26.25	52.58
Indian Sucrose Ltd	200.96	115.65	6.14	46.06
Ugar Sugar Works Ltd	934.09	83.03	44.16	44.02
Shree Renuka Sugars Ltd	9935.79	46.68	-15.84	42.84

Note: The data on the best sugar stocks in India for long-term is from 13th September 2024. The list of the best sugar stocks for long-term are derived using the following filters on the Tickertape Stock Screener – 

• Sector: Consumer Staples > Sugar
• 5-yr CAGR: Sort from highest to lowest

What are Sugar Stocks?

Sugar stocks are stocks of companies that produce and/or distribute sugar. These companies can cultivate, process, refine, and market sugar products.

Overview of the Indian Sugar Industry

According to the latest data from the Indian Sugar Mills Association (ISMA), India’s gross sugar production for the 2024-25 season is estimated to be around 333 lakh tonnes. This projection is based on satellite images of sugarcane acreage, which covers approximately 56.1 lakh hectares. The production forecast has taken into account factors like improved rainfall and expected sugar recovery rates, particularly in key sugar-producing states like Uttar Pradesh, Maharashtra, and Karnataka.

Compared to last year, sugarcane cultivation areas in Maharashtra and Karnataka have reduced due to poor rainfall; however, the current season’s above-normal rainfall is expected to enhance sugarcane productivity and mitigate the impact of reduced acreage. Overall, the positive conditions have led ISMA to project a relatively stable sugar production outlook for the current season.

The majority of sugar is produced through sugarcane. The production of sugar includes 80% from sugarcane extraction and 20% from sugar beet. The prices of sugar are significantly affected by the volatility of its production. The factors influencing sugar production and supply are

• Dependence on the monsoon season.
• Payment delays to farmers lead to a shift towards other crops.
• Drought conditions make farmers less inclined to grow water-intensive sugarcane.
• Government policies and initiatives aimed at enhancing sugar production and stabilising domestic prices.
• Price of ancillary products like animal feed and ethanol.
• Competition and export opportunities.

How to Identify the Best Sugar Stocks to Invest In?

You can go through the following steps to get an understanding of how you may approach sugar company stock investments:

1. Research the Sugar Stocks that Interest You: Investors can examine the top 10 ethanol stocks listed above in the three lists based on specific factors like net income, market cap, net profit margin and return on equity. 

2. Evaluate the Stock Price and Analytics: Investors can look at the ethanol company list and their share prices to get an idea of their different market valuations and trends that might be significant for investors. 

3. Selection of Stock Types: Investors may choose ethanol stocks in India based on their investment objectives and risk appetite. Sugar Industry shares in India can range mostly from mid-cap to high-cap with differing potential returns and risk profiles. Furthermore, as seen in the three lists above, you can choose your preferred ethanol share accordingly based on different factors. 

4. Analysing Financial Health and Position: Analysing financial reports, market performance, and future growth prospects of chosen ethanol companies in India provides insights into their stability and growth potential. This analysis enhances comprehension of the ethanol company share portfolio’s performance and outlook.

5. Use Advanced Tools: Tickertape Stock Screener empowers you to craft a personalised ‘Custom Universe’ for streamlined analysis of sugar industry stocks. With over 200 filters, tailor your criteria to refine your list effortlessly. Additionally, investors may use the ‘Custom Filter’ option to craft their unique parameters. Begin building your ethanol company stocks universe today, and use Tickertape for insightful analysis!

How to Invest in the Best Sugar Stocks for Long Term?

To invest in the best sugar stocks of India, follow these steps.

Step 1: Launch Tickertape Stock Screener.

Step 2: Go to ‘Sectors’ and Select -> Consumer Staples > Sugar

Step 3: Add over 200 filters to narrow down the sugar shares list. 

You can choose fundamental filters like ROE, Net Profit Margin, or Debt-to-Equity Ratio. You can also select technical filters like RSI. The selection criteria of filters depend on your preference. While thorough research on sugar company shares is important, it is worthwhile to consult a professional before investing.

Benefits of Investing in Sugar Stocks

• Array of Complementary Products and Services: The sugar sector offers a broad spectrum of products and services, encompassing table sugar, white refined sugar, jaggery, ethanol, and power generation. This diversity offers investors a plethora of investment avenues to explore.
• Long-term Growth Potential: Investors venturing into sugar sector stocks stand to capitalise on long-term growth prospects fueled by escalating demand for sweeteners. With prudent management, this uptick in demand could yield sustainable returns.
• Steady Profits: Because of their extensive array of products and services, sugar sector stocks frequently deliver consistent profits to investors. This reliability may appeal to individuals seeking stable returns over time.
• Portfolio Diversification: Including sugar sector stocks in an investment portfolio can enhance diversification, mitigating risks associated with other stock market investments. For instance, these sugar stocks may hedge against inflation, appealing to those keen on broadening their investment portfolio.
• Risk-reward Balance: Ultimately, the best sugar stocks in India offer investors an enticing risk-reward balance. Despite inherent risks, the potential for returns may surpass that of alternative investments, making them attractive.

Risks of Investing in Sugar Stocks

Investing in sugar stocks in India may offer growth opportunities but also comes with risks. Understanding these can help you make informed decisions.

1. Cyclicality of the Sugar Industry

The sugar industry is cyclical, driven by fluctuating supply and demand. Weather conditions and government policies can lead to volatile sugar share prices, making this sector unpredictable.

2. Impact of Government Regulations

Government policies on sugarcane pricing, export restrictions, and ethanol blending significantly impact sugar companies. Changes in these regulations can affect profitability and stock performance.

3. Weather-Related Risks

Sugarcane production is highly dependent on weather, especially monsoons. Poor weather conditions can affect crop yields, impacting company revenues and stock prices.

4. Global Market Volatility

India is one of the largest sugar-producing countries, and global sugar prices affect domestic companies. Changes in international demand, competition, and trade policies can lead to price fluctuations.

5. Fluctuating Demand for Ethanol

Sugar companies have diversified into ethanol, but its demand depends on government mandates and oil prices. A dip in crude oil prices can impact ethanol sales and company profitability.

6. Financial Health of Sugar Companies

Many sugar companies carry high debt, which can be risky during downturns. Assessing a company’s financial stability and debt levels is crucial before investing.

7. Competition from Alternative Sweeteners

Rising health consciousness has increased demand for alternative sweeteners. This shift may reduce traditional sugar demand, impacting sugar companies’ sales over time.

8. Operational and Management Risks

Operational inefficiencies and poor management decisions can affect a company’s performance. Evaluating management quality and operational efficiency is important when investing.

Factors to Consider Before Investing in Sugar Stocks

There are a few factors that you should consider before investing in sugar stocks. Some of them are enumerated below.

• Global Sugar Demand and Supply: Sugar supply and demand are affected by various factors, such as economic conditions, government policies, and changes in consumer preferences. To invest in sugar sector stocks, you must gauge the demand and supply of sugar products.
• Weather Conditions: Sugar crops are sensitive to weather conditions, which can impact their production and distribution. For instance, drought, floods, or other natural disasters can negatively impact sugar production and may affect the stock prices of sugar companies.
• Government Policies: New government rules, regulations, and policies may affect the profitability of sugar companies and the overall future of sugarcane stocks in India. Hence, you must keep track of new government regulations if you want to invest in sugar sector stocks.
• Enhancing Profitability: Ethanol may be found in molasses, a by-product of the sugar industry. When ethanol is blended with petrol, it produces a cheaper and cleaner source of energy. To promote this, the Indian government aims to achieve 20% blending of ethanol in petrol by 2025, compared to the present levels of 10%. 
• A Surge in Soft Drink Consumption: In February 2024, soft drink and juice makers reported a 30-35% year-on-year jump in sales. This is unusual for February, as traditionally, sales start increasing in March-April. However, due to unusually high temperatures in February this year, sales of summer products, such as appliances and beverages, have jumped.

Before investing in sugar stocks, you must consider the factors mentioned above, as well as each company’s performance, industry competition, and sugar price volatility.

Who Can Invest in the Best Sugar Stocks in India?

Investing in the best sugar stocks in India can be a suitable option for a range of investors, particularly those aiming to benefit from one of the largest agro-based sectors in the country. Staying updated with the latest sugar stock news and sugar industry news is crucial for making informed decisions. Here’s a look at who might consider investing in sugar stocks:

1. Long-Term Investors Seeking Growth Potential

Investors looking for long-term growth opportunities might find sugar stocks appealing due to India’s position as the largest sugar-producing country. The sector’s growth prospects are influenced by increasing demand and favourable market dynamics.

2. Value Investors Searching for Undervalued Stocks

Value investors may find opportunities in the sugar sector, especially during market downturns when sugar share prices may not reflect the companies’ true potential. Keeping up with the latest sugar stocks news can help spot undervalued investments.

3. Investors Focused on Sector Diversification

Diversifying into sugar industry stocks can provide exposure to the agriculture and consumer goods sectors. The sugar industry in India is deeply integrated into the economy, making it a viable choice for diversification.

4. Commodity Investors Monitoring Global Trends

Those focused on commodities might consider sugar stocks, as India is a significant player in global sugar markets. Monitoring sugar industry news and market trends can help these investors make better-informed decisions.

5. Retail Investors Following Market Trends

Retail investors who actively track market movements might benefit from investing in top sugar stocks. Awareness of sugar stock news helps in identifying investment opportunities that align with market conditions.

6. Income-Oriented Investors Seeking Dividends

Some sugar companies offer attractive dividends, which can be appealing for income-focused investors. By investing in sugar sector stocks, investors can potentially earn regular dividends while benefiting from the industry’s growth.

To conclude

The sugar industry is a prominent agro-based industry in India. The government’s focus on increasing production and blending of ethanol for cleaner energy can significantly impact the industry’s overall growth. However, sugar is a cyclical product and may be subject to high market volatility. Hence, a thorough analysis of the sector and stocks you are interested in can be a wise decision. With Tickertape stock screener, you can screen sugar stocks and identify the best sugar stocks in India that aligns with your investment goals. Try it now!

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