List of Top Sugar Stocks to Invest in India in 2024
Sugar Industry is the second largest agricultural industry and provides about 12% of rural employment. The scale of production and consumption of sugar in India offers investors a chance to benefit from the growth of the sugar industry. In the past year, numerous sugar sector sectors recorded double-digit growth, thus showcasing the growing potential of the sugar industry in India. However, investing in sugar stocks comes with challenges such as volatile prices and changing regulations.
Therefore, to navigate through the risks associated with sugar stocks, we have listed down essential factors to consider when investing in the best sugar stocks, along with a list of top 10 sugar companies in India, how to invest in them and much more.
List of Best Sugar Stocks in India 2024
Here is the list of the most popular sugar companies listed in NSE –
| Best Sugar Stocks in India | Market Cap (Rs. in cr.) | Share Price (Rs.) | 5Y CAGR (%) | Total revenue (Q) |
|---|---|---|---|---|
| E I D-Parry (India) Ltd | 10,966.15 | 617.75 | 25.22 | 7,811.32 |
| Shree Renuka Sugars Ltd | 9,376.00 | 44.05 | 32.22 | 3,062.10 |
| Triveni Engineering and Industries Ltd | 7,770.88 | 355.00 | 41.02 | 1,333.09 |
| Balrampur Chini Mills Ltd | 7,647.31 | 379.05 | 21.84 | 1,290.13 |
| Piccadily Agro Industries Ltd | 4,933.00 | 522.90 | 119.98 | 269.50 |
| Bajaj Hindusthan Sugar Ltd | 4,222.17 | 33.10 | 31.24 | 1,744.90 |
| Bannari Amman Sugars Ltd | 3,201.51 | 2,553.10 | 11.83 | 769.70 |
| Dalmia Bharat Sugar and Industries Ltd | 3,112.12 | 384.50 | 28.53 | 610.12 |
| Dhampur Sugar Mills Ltd | 1,496.72 | 228.90 | 1.39 | 380.68 |
| Dwarikesh Sugar Industries Ltd | 1,383.07 | 73.45 | 21.54 | 318.96 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in the list of sugar stocks is from 8th October 2024. This data is derived from Tickertape Stock Screener using the following parameters:
- Stock Sector > Consumer Staples > Sugar
- 5Y CAGR: Set to Positive, sorted from highest to lowest.
- Debt to Equity: Set to Low
- Net Profit Margin: Set to Positive
- Total Revenue
🚀 Pro Tip: You can use Tickertape’s Stocks Screener to research and evaluate stocks with over 200+ filters and parameters.
Top 10 Sugar Companies in India: An Overview
Here are the top sugar stocks in India from our curated sugar company share list, with a strong focus on innovation, sustainability, and diversification.
Piccadily Agro Industries Ltd
Piccadily Agro Industries Ltd, established in 1994, operates primarily in the agro-processing sector. The company is involved in the production of sugar and distillation of alcohol. It focuses on producing ethanol and by-products of sugarcane, including sugar and alcohol. The company is based in Haryana.
The company’s market capitalisation is Rs. 6,815.07 cr., with a close price of Rs. 718.90. The price-to-earnings (PE) ratio stands at 62.10. Its 5-year compound annual growth rate (CAGR) is 147.44%. The debt-to-equity ratio is 0.51. Piccadily Agro’s total revenue is Rs. 809.63 cr., and its net profit margin is 13.56%.
Rana Sugars Ltd
Rana Sugars Ltd, founded in 1992, is engaged in the production of sugar and its by-products, including ethanol and the cogeneration of power. The company is headquartered in Punjab, India, and has diversified its operations into alcohol and electricity generation from biomass.
Its market capitalisation is Rs. 340.00 cr., with a close price of Rs. 21.43. The price-to-earnings (PE) ratio is 12.15. The 5-year CAGR is 59.13%, and the debt-to-equity ratio is 0.68. Rana Sugars’ total revenue is Rs. 1,610.53 cr., and its net profit margin is 1.74%.
Magadh Sugar & Energy Ltd
Magadh Sugar & Energy Ltd, established in 1932, is engaged in the manufacturing of sugar, molasses, ethanol, and cogeneration of power. The company operates mainly in Bihar and is a significant player in the Indian sugar industry.
The market capitalisation of Magadh Sugar is Rs. 1,225.90 cr., with a close price of Rs. 882.75. The price-to-earnings (PE) ratio stands at 10.53. Its 5-year CAGR is 54.57%, and its debt-to-equity ratio is 0.85. The total revenue generated by Magadh Sugar is Rs. 1,098.15 cr., with a net profit margin of 10.60%.
Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd, founded in 1932, is a diversified company involved in sugar manufacturing, water treatment solutions, and engineering services. It is one of India’s largest integrated sugar producers and also focuses on cogeneration of power, distillation of ethanol, and engineering services.
The company has a market capitalisation of Rs. 10,113.09 cr., with a close price of Rs. 452.90. The price-to-earnings (PE) ratio is 25.59. The 5-year CAGR is 47.83%, and the debt-to-equity ratio stands at 0.49. The company has total revenue of Rs. 5,282.29 cr., with a net profit margin of 7.48%.
Indian Sucrose Ltd
Indian Sucrose Ltd, incorporated in 1990, is engaged in the production and processing of sugar. The company is based in Punjab and focuses primarily on sugar manufacturing, distillation, and cogeneration of power from renewable sources.
Indian Sucrose has a market capitalisation of Rs. 201.66 cr., with a close price of Rs. 123.60. Its price-to-earnings (PE) ratio is 6.16. The 5-year CAGR is 47.67%, and the debt-to-equity ratio is 0.97. The total revenue stands at Rs. 542.21 cr., and the net profit margin is 6.04%.
Ugar Sugar Works Ltd
Ugar Sugar Works Ltd, established in 1939, is one of the oldest sugar companies in India. It is engaged in the manufacture of sugar, ethanol, and generation of power through cogeneration plants. The company operates primarily in Karnataka and Maharashtra.
Ugar Sugar has a market capitalisation of Rs. 977.40 cr., with a close price of Rs. 84.04. The price-to-earnings (PE) ratio is 46.21. The 5-year CAGR is 46.75%, and the debt-to-equity ratio stands at 2.19. The company’s total revenue is Rs. 1,184.29 cr., with a net profit margin of 1.79%.
Dalmia Bharat Sugar and Industries Ltd
Dalmia Bharat Sugar and Industries Ltd, incorporated in 1951, is a leading player in the Indian sugar industry. The company operates in sugar manufacturing, ethanol production, and power generation through renewable sources. It has its presence across Uttar Pradesh and Maharashtra.
The company’s market capitalisation is Rs. 4,580.36 cr., with a close price of Rs. 571.00. The price-to-earnings (PE) ratio is 16.81. Its 5-year CAGR is 44.72%, and the debt-to-equity ratio stands at 0.49. Dalmia Bharat’s total revenue is Rs. 3,027.98 cr., with a net profit margin of 9.00%.
K M Sugar Mills Ltd
K M Sugar Mills Ltd, established in 1946, is engaged in the production of sugar, ethanol, and power cogeneration. The company operates in Uttar Pradesh and has a long-standing presence in the Indian sugar industry.
The company’s market capitalisation is Rs. 369.01 cr., with a close price of Rs. 38.63. The price-to-earnings (PE) ratio is 13.14. Its 5-year CAGR is 43.05%, and the debt-to-equity ratio is 0.96. K M Sugar Mills’ total revenue is Rs. 665.65 cr., and its net profit margin is 4.22%.
Kothari Sugars and Chemicals Ltd
Kothari Sugars and Chemicals Ltd, founded in 1961, is involved in sugar manufacturing and industrial chemicals. The company is part of the Kothari Group and operates primarily in Tamil Nadu.
Kothari Sugars has a market capitalisation of Rs. 463.02 cr., with a close price of Rs. 54.27. The price-to-earnings (PE) ratio is 15.71. Its 5-year CAGR is 40.82%, and the debt-to-equity ratio is 0.25. The company’s total revenue is Rs. 517.13 cr., with a net profit margin of 5.70%.
E I D-Parry (India) Ltd
E I D-Parry (India) Ltd, established in 1788, is one of the oldest companies in India and a leader in the sugar industry. It is involved in sugar production, bio-pesticides, and nutraceuticals. The company operates primarily in Tamil Nadu and Karnataka.
The company’s market capitalisation is Rs. 15,041.71 cr., with a close price of Rs. 822.70. The price-to-earnings (PE) ratio is 16.72. The 5-year CAGR is 39.66%, and the debt-to-equity ratio stands at 0.16. E I D-Parry’s total revenue is Rs. 29,716.92 cr., with a net profit margin of 3.03%.
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What are Sugar Stocks?
Sugar stocks are shares of companies that are engaged in the production, processing, and distribution of sugar and sugar-based products.
These stocks are not just limited to the domestic market but also have a global reach, providing ample diversification opportunities. Furthermore, the sugar industry is backed by strong fundamentals with factors such as increasing demand, government support, and technological advancements driving growth.
Hence, investing in sugar sector stocks can offer significant growth potential along with resilience in uncertain market conditions.
Sugar Sector in India
The sugar sector is an essential part of the Indian economy, with India being the world’s second-largest producer of sugar after Brazil.
Sugarcane significantly contributes 1.1% to India’s GDP, a noteworthy figure given it is cultivated in just 2.57% of the total cropped area. In India, sugar is a crucial commodity with an annual domestic demand of approximately 25 million tonnes. Additionally, the sugarcane industry supports about 7.5% of the rural population, providing vital employment opportunities and playing a substantial role in the country’s economic framework.
The government also provides several incentives and subsidies to sugar companies to promote the growth of the sector. However, the sector also faces challenges, such as environmental concerns and competition from other sweeteners.
Despite these challenges, the sugar sector in India has shown consistent growth over the years. The outlook for sugar stocks in India appears promising, fueled by rising demand for sugar-based products and technological innovations that are driving industry growth.
Advantages of Investing in Sugar Stocks
Investing in sugar sector stocks can offer several advantages to investors, including:
Diversification
Investing in sugar manufacturing companies can help diversify an investor’s portfolio by adding exposure to an industry that is not directly correlated to the broader market. This can help reduce overall portfolio risk and potentially enhance returns. Many listed sugar companies in India are strong players in this sector.
Growth Potential
The sugar industry has significant growth potential due to increasing demand for sugar and sugar-based products. Rising population, urbanisation, and changing consumer preferences are driving the demand for sugar-based products, providing a growth opportunity for manufacturers of sugar. Investors can explore the sugar sector stocks list to identify companies poised to benefit from this growth.
Resilience
The sugar sector is relatively resilient, with demand for sugar remaining stable even during economic downturns. This makes sugar-related stocks a potential investment option to mitigate risk. The consistency of demand provides some level of security when investing in sugar stocks on NSE.
Value Opportunities
Some sugar stocks may be undervalued, providing investors with an opportunity to invest in quality companies at attractive valuations. Tracking the sugar factory share price and the sugar company share price can reveal such opportunities, which can potentially lead to significant capital appreciation over the long term.
Defensive Characteristics
The sugar stocks can provide investors with defensive characteristics, making them a suitable investment option during times of economic uncertainty. As an essential commodity, sugar has inelastic demand, which can provide a stable source of revenue for sugar manufacturing companies even during challenging economic conditions.
How to Invest in Sugar Sector Stocks?
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Who Should Invest in Sugar Sector Stocks?
The sugar industry is driven by seasonal production cycles and regulatory changes, which might not suit every investment thesis. Therefore, investing in the best sugar stocks is suitable for investors with certain characteristics, such as:
- Long-term Investors: Individuals seeking to capitalise on the growth potential of a staple industry with long-term horizons could benefit from investing in sugar-related stocks, given India’s leading role in the global sugar market. Monitoring the sugar mills share price list can help identify long-term opportunities.
- Agricultural Sector Enthusiasts: Investors with an interest or background in agricultural commodities and industries might find sugar stocks appealing due to their significance in the Indian economy and their impact on rural employment. Exploring the list of sugar industry in India can provide valuable insights into the sector’s major players.
- Investors Looking to Diversify Portfolio: Those looking to diversify their portfolios by including emerging market assets might consider Indian sugar stocks as a way to tap into the economic growth of one of the largest markets in Asia. The sugar share list offers a wide range of options for investors looking to diversify.
- Risk Tolerant Investors: Those comfortable navigating the potential volatility associated with commodity prices and regulatory changes, and are capable of managing such risks through strategic investments, might find sugar stocks a rewarding opportunity. Keeping track of the sugar sector stocks list and the sugar company share price can aid in managing these risks.
How to Identify Best Sugar Stocks in India?
To choose the best sugar stocks in India, investors can consider the following factors:
- Demand and Supply: The demand and supply of sugar play a crucial role in the price and profitability of sugar stocks. Investors should consider factors such as consumer preference, global economic conditions, agricultural practices, government policies, and weather conditions that can affect the supply of sugar.
- Regulation: Government policies and regulations can significantly impact the sugar industry. Investors should consider factors such as import and export policies, subsidies, and taxes that can affect the profitability of sugar companies.
- Global Demand: The global demand for sugar is strong, particularly in emerging markets. Investors should consider the potential for growth in these markets and the ability of sugar companies to capitalise on this demand.
- Financial Ratios: Financial ratios such as Price to Book Value Ratio (P/BV), Price to Earnings Ratio (P/E), and Return on Capital Employed (ROCE) can provide insights into the financial health and profitability of sugar companies.
- Dividend Yield: Some sugar companies offer high dividend yields, which can provide a steady stream of income for investors.
- Market Capitalisation: Larger, more established sugar companies may have a lower risk profile compared to smaller, less established companies.
- Expert Analysis and Recommendations: Analysts and financial advisors can provide insights and recommendations on the best sugar stocks to invest in based on their research and analysis.
Factors to Consider While Investing in Sugar Stocks
Here are some factors that you should consider while investing in sugar sector stocks:
- Market Conditions: The performance of the sugar sector share is closely tied to global commodity prices and demand dynamics. Understanding the broader economic environment is crucial to making informed investment decisions.
- Supply and Demand Dynamics: Sugar prices can be highly volatile due to fluctuations in supply and demand. Understanding the factors that influence these dynamics is critical to predicting the future of sugar stocks in India sugar share price movements.
- Government Policies: It can have a significant impact on the sugar industry, particularly in terms of subsidies, tariffs, and trade agreements. Hence, understanding the regulatory environment is quite important when investing in penny sugar stocks India.
- Financial Performance: Like any other stock, it’s essential to evaluate a sugar company’s financial performance before investing. This includes factors like revenue growth, profit margins, and debt levels of the sugar stocks.
- Competitive Landscape: The sugar industry is highly competitive, with many players vying for market share. Understanding a company’s competitive position relative to its peers is crucial to making informed investment decisions.
It is advisable, to conduct due diligence or consult a financial advisor before investing in stocks.
Risks Associated with Investing in Best Sugar Stocks in India
Investing in sugar stocks in India comes with several risks that investors should be aware of before making any investment decisions. These risks include:
Weather Risk
Weather is the biggest risk as far as sugar stocks are concerned. Of the total annual crop losses in the sector, many are due to direct weather risks.
Commodity Prices
Sugar is a commodity, and its prices can fluctuate depending on supply and demand. Therefore, it’s important for investors to keep an eye on international market trends to understand how they might affect their investments.
Government Regulations and Support
The government plays a major role in the sugar industry with its policies and regulations. Investors should be aware of any changes in government policy that could impact demand for products like ethanol or table sugar, as well as any government support programs such as subsidies to ensure sustainable long-term returns.
Competition
The sugar sector is highly competitive, and companies must invest in innovative strategies to stay ahead of their rivals. Investors should be aware of any new competitors entering the market, as this could affect the profits of existing players.
Technological Development
Technology plays an important role in the production and sale of sugar, with many companies investing heavily in research and development activities to increase efficiency and reduce costs. Investors should look out for any technological advancements that might give existing players a competitive edge over their competitors.
Volatility of Sugar Prices
One of the principal risks of investing in sugar stocks is the volatility of sugar prices, which are subject to various factors such as supply and demand, geopolitical events, and weather conditions.
Long-term Wealth Creation
Sugar stocks have not been consistent wealth creators in the long run. Investors will be better off investing in great companies that consistently create wealth over time.
Therefore, investors should carefully consider these risks and conduct thorough research before investing in sugar stocks in India.
To Wrap It Up…
As we have mentioned above, the future of sugar stocks in India outlook seems promising. Hence, investing in sugar stocks to buy can be a rewarding experience for investors who take the time to understand the sector and the factors that drive its performance.
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FAQs About Sugar Stocks in India
Based on the market capitalisation, E I D-Parry (India) Ltd is the largest sugar company in India. It has a market cap of Rs. 15,041.71 cr.
Based on 1-month return, following are the top-performing sugar industry stocks in September 2024 –
– Prudential Sugar Corp Ltd
– Dollex Agrotech Ltd
– Dalmia Bharat Sugar and Industries Ltd
– Indian Sucrose Ltd
– Balrampur Chini Mills Ltd
Sugar stocks began a remarkable surge in 2021, which is ongoing. Uttam Sugar, for instance, has seen its stock price soar by an impressive 270% over the past three years. As temperatures rise, there’s heightened demand for sugar from ice-cream and soft drink manufacturers.
Statistical projections indicate that the sugar market is projected to achieve a 2.34% CAGR between 2022 and 2028. Investors should comprehend both the growth potential and challenges confronted by sugar companies.
Sugar stocks to buy embarked on a remarkable rally in 2021, and this momentum endures. This is good news for sugar penny stocks. Investors must consider their investment goals and risk appetite before investing in paper stocks.
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