Best Sugar Stocks in India (2024)

Last Updated on May 24, 2024 by Aishika Banerjee

Sugar sector stocks are stocks of a company involved in producing and selling of sugar products. As India is the world’s largest consumer and producer of sugar, investing in the best sugar stocks presents an enticing opportunity for investors to tap into the long-term growth prospects of the sugar industry.

The Indian sugar industry is the second largest agro-based industry in the country, providing approximately 12% of the overall employment opportunities in rural India. Although the sugar industry’s growth prospect is positive, investors must navigate the risks, including fluctuating commodity prices and regulatory shifts, while investing in the best sugar stocks.

In this blog, we will explore sugar stocks, 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

Note: The data is from 3rd May 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.

Confused about which sugar stocks to choose? Consider exploring smallcase

Let’s learn about what a smallcase is first. 

smallcases are modern investment products that help investors easily build a low-cost, long-term and diversified portfolio. A smallcase is a basket of stocks/ETFs that collectively represent a theme, idea or strategy. Investors looking to align their investments sector-wise can consider smallcases. Every smallcase is created and managed by SEBI-registered managers.

Some of the popular smallcases amongst new investors have been included below.

House of Tata smallcase by Windmill Capital

Value & Momentum smallcase by Windmill Capital

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

E.I.D.- Parry (India) manufactures and markets sugar, biopesticides, and nutraceuticals. India’s biggest sugar company’s revenue has grown at a yearly rate of 17.85% over the last five years, higher than the industry average of 9.46%. Furthermore, the company’s market share has increased from 25.87% to 36.69% over the last five years. On the Tickertape Scorecard, the company has acquired high scores of 6.7/10 in profitability. 

Shree Renuka Sugars Ltd

Shree Renuka Sugars Limited is an agribusiness and bioenergy company that produces integrated sugar and bioenergy. On the Tickertape Scorecard, the company shows good signs of profitability and efficiency. The smallcap ethanol-making company has acquired high profitability scores of 6.3/10. 

Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited is an integrated sugar manufacturing company that produces sugar, ethanol, and power. Its current ratio has been 147.29% over the past five years. Additionally, the stock displays positive profitability scores of 7.1/10 on the Tickertape Scorecard. 

Triveni Engineering and Industries Ltd

Triveni Engineering & Industries Limited is engaged in the manufacture of sugar. The company has observed revenue growth at a yearly rate of 15.89% over the last 5 years. This is higher than the industry average of 9.46%. Furthermore, the company’s market share has increased from 5.64% to 7.36%, over the last 5 years. 

Piccadily Agro Industries Ltd

Piccadily Agro Industries Limited is an ethanol-making company in India that manufactures sugar and distillery products. The sugar segment includes products such as sugar, molasses, and bagasse, while the distillery segment includes products such as liquor and malt. Upon evaluating this small-cap ethanol stock on the Tickertape Scorecard, this Indian sugar company recorded a quite high profitability score. Further analysis of the scorecard shows that the stock has been one of the top-performing stocks, with a score of 10 in annualised returns and 10 in absolute returns. 

Bajaj Hindusthan Sugar Ltd

Bajaj Hindusthan Sugar Limited, formerly Bajaj Hindusthan Limited, is a holding Indian sugar company that manufactures sugar, alcohol, and power. The Tickertape Scorecard depicts a positive score of 6.6/10 in terms of profitability.

Bannari Amman Sugars Ltd

Bannari Amman Sugars Limited is engaged in five divisions, which include sugar division, co-generation of power, distillery division, granite division and windmill. The company’s revenue has grown at a yearly rate of 11.53%, over the span of the last 5 years. This is higher than the industry average of 9.46%. Additionally, the Indian sugar company’s market share increased from 2.46% to 2.65% during this time. 

Dalmia Bharat Sugar and Industries Ltd

Dalmia Bharat Sugar and Industries Limited is engaged in sugar manufacturing and other related downstream businesses, such as ethanol, co-generation and distillery. The company has had a current ratio of 180.92% over the last 5 years, which is greater than the industry average of 97.98%. 

Uttam Sugar Mills Ltd

Uttam Sugar Mills Limited is a sugarcane processing company that produces sugar, ethanol, and power. Over the last five years, the company’s revenue has grown at a yearly rate of 10.51%, greater than the industry average of 9.46%. Furthermore, the company’s market share increased from 2.08% to 2.14% in the same period. 

Top 10 Best Sugar Stocks Based on the Net Profit Margin

Note: The data is from 3rd May 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

Note: The data is from 3rd May 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)

Note: The data on the best sugar stocks in India for long-term is from 3rd May 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 Indian Sugar Mills Association (ISMA), sugar production in India rose by 3.69% to 120.7 lakh tonnes during the October-December quarter of the current year. In the same period last year, it stood at 11.64 mn tonnes.

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 Invest in Sugar Stocks?

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!

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.

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.

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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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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