List of Best Sugar Stocks to Buy in India in 2024

The 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 this vital sector. In fact, investing in the best sugar company in India can yield significant returns. In the past year, numerous sugar manufacturers have recorded double-digit growth, further showcasing the immense potential of the industry. However, investing in sugar manufacturer 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 to buy in India, along with a curated list of the top 10 sugar manufacturers in India and 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 (in Cr.)	Close Price (in Rs.)	PE Ratio	5Y CAGR (%)	Debt to Equity	Net Profit Margin (%)	Total Revenue
Piccadily Agro Industries Ltd	6,802.66	720.7	61.98	154.65	0.51	13.56	809.63
Rana Sugars Ltd	290.86	18.93	10.40	46.55	0.68	1.74	1610.53
Triveni Engineering and Industries Ltd	8,267.80	377.5	20.92	42.70	0.49	7.48	5282.29
Kesar Enterprises Ltd	141.70	140.5	1.70	36.87	0.39	13.41	623.14
Dalmia Bharat Sugar and Industries Ltd	3,349.88	413.6	12.29	35.74	0.49	9.00	3027.98
Khaitan (India) Ltd	42.77	90	31.68	35.37	0.58	2.27	59.57
Kothari Sugars and Chemicals Ltd	392.27	47.3	13.31	35.12	0.25	5.70	517.13
E I D-Parry (India) Ltd	13,884.27	781.5	15.43	32.99	0.16	3.03	29716.92
Balrampur Chini Mills Ltd	10,896.42	539.4	20.39	29.74	0.59	9.22	5799.76
KCP Sugar and Industries Corp Ltd	491.56	43.33	7.43	26.36	0.33	15.67	422.31

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 18th November 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 list of sugar manufacturers, each focusing on innovation, sustainability, and diversification.

Piccadily Agro Industries Ltd

Piccadily Agro Industries Limited operates in the sugar and distillery sectors, producing sugar, molasses, bagasse, liquor, and malt. Over the last five years, the company has demonstrated impressive growth with a revenue CAGR of 16.33%, outperforming the industry average of 9.08%. This manufacturer of sugar maintains a debt-to-equity ratio of 64.88%, significantly lower than the industry average of 105.32%, indicating better financial leverage.

Rana Sugars Ltd

Rana Sugars Ltd is a major manufacturer of sugar and related products. Its financial stability is showcased by a debt-to-equity ratio of 65.81% over the last five years, compared to the industry average of 105.32%. Additionally, its current ratio of 104.59% surpasses the industry average of 102.56%, reflecting strong liquidity.

Triveni Engineering and Industries Ltd

Triveni Engineering operates across sugar manufacturing, power generation, and engineering services. This sugar manufacturer has achieved a revenue growth rate of 10.3% annually over the last five years, above the industry average of 9.08%. Its debt-to-equity ratio of 68.85% underscores robust financial management, making it one of the best sugar stocks to buy in India.

Kesar Enterprises Ltd

Kesar Enterprises focuses on sugar production, distilleries, and related activities. This sugar manufacturer boasts a strong net profit margin of 13.41% and a notable return on equity (ROE) of 66.48%, reflecting superior operational efficiency and shareholder returns.

Dalmia Bharat Sugar and Industries Ltd

Dalmia Bharat Sugar is positioned for revenue growth of 19.18% next year, significantly higher than its 3-year CAGR of 3.39%. This best sugar company in India has maintained a debt-to-equity ratio of 45.81% over the last five years, which is considerably lower than the industry average of 105.32%, demonstrating prudent financial management.

Khaitan (India) Ltd

Khaitan (India) Ltd is a prominent manufacturer of sugar and related products. Over the past five years, it has managed a debt-to-equity ratio of 74.42%, below the industry average of 105.32%. However, its net profit margin is relatively modest at 2.27%, highlighting areas for potential improvement.

Kothari Sugars and Chemicals Ltd

Kothari Sugars is well-known among sugar manufacturers for its financial stability. With a debt-to-equity ratio of 27.1% and a current ratio of 155.29% over the last five years, both figures outperform the industry averages of 105.32% and 102.56%, respectively.

E I D-Parry (India) Ltd

E I D-Parry is a leading manufacturer of sugar with diversified operations. The company’s revenue has grown at an annual rate of 12.26% over the last five years, surpassing the industry average of 9.08%. Its debt-to-equity ratio of 29.84% reflects solid financial health, marking it as one of the best sugar stocks to buy in India.

Balrampur Chini Mills Ltd

Balrampur Chini Mills, one of India’s largest sugar manufacturers, has maintained a debt-to-equity ratio of 55.29% over the last five years, staying well below the industry average of 105.32%. Its current ratio of 148.6% highlights robust liquidity management compared to the industry average of 102.56%.

KCP Sugar and Industries Corp Ltd

KCP Sugar specialises in sugar manufacturing and ethanol production. This sugar manufacturer showcases notable financial health with a debt-to-equity ratio of 64.16% and a current ratio of 195.86% over the last five years, both outperforming the industry averages of 105.32% and 102.56%.

What are Sugar Stocks?

All 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. 

Investing in the best sugar stocks in India 2024 can present significant growth potential alongside resilience during market uncertainties. Understanding which sugar stock is best to buy helps investors take advantage of this sector’s growth and stability.

Sugar Sector in India

The sugar sector in India 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. This demonstrates the high value generated by sugar listed companies. 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 manufacturing companies to promote the growth of the sector. However, the sector faces challenges like environmental concerns and competition from alternative sweeteners, impacting all sugar stocks.

Despite these challenges, the sugar sector in India has shown consistent growth over the years. This ongoing growth supports the promising outlook for the sugar stocks list in India, ensuring investors have diverse options when determining which sugar stock is best to buy.

Advantages of Investing in Sugar Stocks

Investing in sugar sector stocks can offer several advantages to investors, including:

• Diversification: Holding shares in sugar listed companies allows for portfolio diversification. This adds an element that isn’t directly correlated with broader market movements. Many sugar manufacturing companies in India are leaders in the sector and stand out on the sugar stocks list.
• Growth Potential: The sugar industry has significant growth potential due to increasing demand for sugar and sugar-based products. 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.

Identifying which sugar stock is best to buy from the sugar stocks list can help achieve long-term investment growth. 

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 only suit some investment thesis. Therefore, investing in the best sugar stocks to buy in India 2024 is suitable for investors with certain characteristics, such as:

1. Long-term Investors: Individuals seeking to capitalise on the growth potential of a staple industry could benefit from investing in sugar-related stocks. Regularly checking the sugar shares list and monitoring the best sugar company share prices can reveal valuable long-term prospects.
2. Agricultural Sector Enthusiasts: Investors with an interest or background in agricultural commodities and industries might find the best sugar companies in India appealing due to their impact on rural employment. Analysing the top 5 sugar companies in India can provide insightful perspectives.
3. 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 many options for investors looking to diversify.
4. Risk-Tolerant Investors: Those comfortable navigating the potential volatility associated with commodity prices and regulatory changes 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 the 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, including subsidies, tariffs, and trade agreements, can significantly affect the best sugar companies in India. 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 the 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. Analysing these metrics helps investors choose the best sugar company share.
• Dividend Yield: Some sugar companies on the sugar shares list offer high dividend yields, which may provide a steady stream of income for investors.
• Expert Analysis and Recommendations: Analysts and financial advisors can provide insights on the best sugar stocks based on their research and analysis. They can provide up-to-date sugar stocks news, helping investors make informed decisions.

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 and 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 in 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 the 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, investors need 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.
• Volatility of Sugar Prices: One of the principal risks of investing in any manufacturer of sugar is the volatility of sugar prices, which are subject to various factors such as supply and demand, geopolitical events, and weather conditions.

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 seems promising. Hence, investing in sugar stocks can be a rewarding experience for investors who take the time to understand the sector and the factors that drive its performance. 

Moreover, you can save a lot of your time by investing in modern investment products like smallcases. Since these are ready-made investment portfolios, you can begin investing in them with just a few clicks. However, it is always advisable to conduct your own research and due diligence before making any investment decisions.

FAQs About Sugar Stocks in India

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