Top 8 Best Ethanol Stocks in India: Biofuel Stocks and Largest Ethanol Producers
This post was most recently updated on January 2nd, 2024
As the world continues to grapple with environmental challenges, the focus on renewable energy sources has never been more critical. One such renewable source that has been gaining traction is ethanol. In India, the ethanol industry is booming, thanks to the government’s push for ethanol blending in petrol. This has opened up a plethora of opportunities for investors looking to capitalize on this growing industry.
In this blog post, we will delve into the Best Ethanol Stocks in India: Biofuel Stocks, providing a comprehensive guide for potential investors.
Consider reading: Best Biofuel Companies in India
Page Contents
List of Best Ethanol Stocks in India: Biofuel Stocks
| S.No. | Company Name |
|---|---|
| 1 | Shree Renuka Sugars |
| 2 | Bajaj Hindusthan Sugar |
| 3 | EID-Parry (India) |
| 4 | Dhampur Sugar Mills |
| 5 | Dwarikesh Sugar Industries |
| 6 | Dalmia Bharat Inds |
| 7 | Globus Spirits |
| 8 | Triveni Engg |
Consider reading: Most Expensive Stocks in India
The Rise of the Ethanol Industry in India
Ethanol, primarily a by-product of the sugar industry, is used in a variety of sectors, including plastics, polishes, plasticizers, medications, cosmetics, and alcoholic beverages.
With India being one of the largest importers of petroleum products globally, the government is exploring ways to reduce this dependency. One such strategy is increasing the use of ethanol as a substitute for gasoline.
As per the International Energy Agency, India is expected to surpass the United States and Brazil to become the third-largest economy for ethanol globally by 2026.
As per Niti Aayog’s report; Ethanol Blending in India is expected to reach 20% by FY 24–25. The table below gives an idea of Ethanol Production Projections.
Shree Renuka Sugars
Shree Renuka Sugars Limited, based in Mumbai, Maharashtra, is India’s largest producer of ethanol.
The company produces sugar, refines sugar, trades sugar, produces ethanol, and co-generates electricity.
With a 600-kiloliter-per-day distillery capacity, the company refines 4000 tonnes of sugar per day. In 2019, it contributed 20% of India’s sugar exports to other countries.
Here’s the key financial information for Shree Renuka Sugars:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 9,302 Cr. |
| Current Price | ₹ 43.7 |
| High / Low | ₹ 68.8 / 39.4 |
| Stock P/E | NA |
| Book Value | ₹ -4.14 |
| Dividend Yield | 0.00 % |
| ROCE | 8.84 % |
| Face Value | ₹ 1.00 |
| Sales (Mar 2023) | ₹ 2,328 Cr. |
| Operating Profit (Mar 2023) | ₹ 259 Cr. |
| Net Profit (Mar 2023) | ₹ 45 Cr. |
Bajaj Hindusthan Sugar
Bajaj Hindusthan Sugar Limited is India’s most prominent and fourth-largest integrated sugar producer.
The company operates 14 facilities in the northern Indian State of Uttar Pradesh with combined sugarcane crushing capacities of 800 kiloliters per day (KLD) and 136,000 tonnes crushed per day (TCD).
The company is a pioneer in the Asian and Indian sugar industries and one of India’s top producers of ethanol-based green fuel.
Here’s the key financial information for Bajaj Hindusthan Sugar Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 2,184 Cr. |
| Current Price | ₹ 17.1 |
| High / Low | ₹ 20.2 / 8.35 |
| Stock P/E | – |
| Book Value | ₹ 34.7 |
| Dividend Yield | 0.00 % |
| ROCE | 0.91 % |
| ROE | -4.03 % |
| Face Value | ₹ 1.00 |
| Sales (Mar 2023) | ₹ 2,054 Cr. |
| Operating Profit (Mar 2023) | ₹ 225 Cr. |
| Net Profit (Mar 2023) | ₹ 131 Cr. |
Bajaj Hindustan may be the Best Ethanol Stocks in India because it is the largest Ethanol producer in India.
EID-Parry (India)
EID–Parry (India) Limited is an Indian company that specializes in producing nutraceuticals and sugar.
The company has been operating for over 225 years and has accomplished numerous firsts, including the first fertilizer production in the Indian subcontinent.
It provides specialized pharmaceutical sugar grades for use in various pharmaceutical applications.
Here is the key financial information for EID Parry (India) Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 8,287 Cr. |
| Current Price | ₹ 467 |
| High / Low | ₹ 673 / 433 |
| Stock P/E | 8.90 |
| Book Value | ₹ 343 |
| Dividend Yield | 2.36 % |
| ROCE | 39.4 % |
| ROE | 16.3 % |
| Face Value | ₹ 1.00 |
| Sales (Mar 2023) | ₹ 6,860 Cr. |
| Operating Profit (Mar 2023) | ₹ 615 Cr. |
| Net Profit (Mar 2023) | ₹ 287 Cr. |
EID Parry is one of the Best Ethanol Stocks in India.
Dhampur Sugar Mills
Dhampur Sugar Mills Limited is an integrated sugarcane processing business based in India.
The company produces and sells sugar, power, and chemicals. Founded in 1933, Dhampur Sugar Mills produces plantation white sugar, ethanol, chemicals, and sugar.
Here is the key financial information for Dhampur Sugar Mills Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 1,789 Cr. |
| Current Price | ₹ 270 |
| High / Low | ₹ 295 / 196 |
| Stock P/E | 11.4 |
| Book Value | ₹ 157 |
| Dividend Yield | 2.23 % |
| ROCE | 15.0 % |
| ROE | 16.3 % |
| Face Value | ₹ 10.0 |
| Sales (Mar 2023) | ₹ 671 Cr. |
| Operating Profit (Mar 2023) | ₹ 104 Cr. |
| Net Profit (Mar 2023) | ₹ 61 Cr. |
Dwarikesh Sugar Industries
Dwarikesh Sugar Industries Limited is an integrated conglomerate company specializing in the production of sugar and related goods.
The company’s sugar manufacturing facilities have a combined production capacity of about 21,500 tonnes of sugarcane per day.
Here is the key financial information for Dwarikesh Sugar Industries Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 1,698 Cr. |
| Current Price | ₹ 90.2 |
| High / Low | ₹ 120 / 75.0 |
| Stock P/E | 16.2 |
| Book Value | ₹ 39.3 |
| Dividend Yield | 2.22 % |
| ROCE | 15.5 % |
| ROE | 14.9 % |
| Face Value | ₹ 1.00 |
| Sales (Mar 2023) | ₹ 533 Cr. |
| Operating Profit (Mar 2023) | ₹ 86 Cr. |
| Net Profit (Mar 2023) | ₹ 47 Cr. |
Looking at the financial metrics, Dwarikesh Sugar Industries is one of the Best Ethanol Stocks in India
Dalmia Bharat Inds
Dalmia Bharat Sugar and Industries Limited is a company that produces sugar. The company also has refractory products, industrial alcohol, sugar, power, and other commodities.
The Dalmia Bharat Group, founded in 1939, holds leadership positions in critical industries like sugar, cement, and refractories after over 80 years in business.
Here is the key financial information for Dalmia Bharat Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 40,245 Cr. |
| Current Price | ₹ 2,147 |
| High / Low | ₹ 2,289 / 1,415 |
| Stock P/E | 36.5 |
| Book Value | ₹ 834 |
| Dividend Yield | 0.42 % |
| ROCE | 8.52 % |
| ROE | 6.97 % |
| Face Value | ₹ 2.00 |
| Sales (Mar 2023) | ₹ 3,912 Cr. |
| Operating Profit (Mar 2023) | ₹ 707 Cr. |
| Net Profit (Mar 2023) | ₹ 609 Cr. |
Globus Spirits
Globus Spirits Limited is one of the key players in the alcohol sector in North India.
The company manufactures, markets, and sells industrial alcohol, which includes rectified spirits, extra-neutral alcohol country liquor, and foreign liquor made in India (IMFL).
Here is the key financial information for Globus Spirits Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 3,600 Cr. |
| Current Price | ₹ 1,250 |
| High / Low | ₹ 1,328 / 700 |
| Stock P/E | 29.5 |
| Book Value | ₹ 308 |
| Dividend Yield | 0.48 % |
| ROCE | 18.5 % |
| ROE | 14.7 % |
| Face Value | ₹ 10.0 |
| Sales (Mar 2023) | ₹ 541 Cr. |
| Operating Profit (Mar 2023) | ₹ 73 Cr. |
| Net Profit (Mar 2023) | ₹ 36 Cr. |
Triveni Engg
Triveni Engineering & Industries Limited is an Indian conglomerate with diverse engineering and sugar businesses.
Founded in 1932, the company works in ethanol production, sugar and alcohol production, power co-generation, power transmission, industrial gears and gearboxes, defense, water purification technologies, and FMCG brands.
It is India’s second-largest producer of sugar.
Here is the key financial information for Triveni Engineering and Industries Ltd:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹ 6,150 Cr. |
| Current Price | ₹ 281 |
| High / Low | ₹ 311 / 216 |
| Stock P/E | 11.6 |
| Book Value | ₹ 122 |
| Dividend Yield | 1.16 % |
| ROCE | 17.5 % |
| ROE | 23.2 % |
| Face Value | ₹ 1.00 |
| Sales (Mar 2023) | ₹ 1,583 Cr. |
| Operating Profit (Mar 2023) | ₹ 263 Cr. |
| Net Profit (Mar 2023) | ₹ 190 Cr. |
Triveni Engg is one of the Best Ethanol Stocks in India.
Consider reading: Best Chemical Stocks in India
Final Thoughts on Best Ethanol Stocks in India – Biofuel Stocks
Investing in the ethanol industry in India presents a promising opportunity, given the government’s push towards ethanol blending and the increasing global focus on renewable energy sources.
However, as with any investment, it is crucial to conduct thorough research and due diligence before making any decisions.
The companies listed above provide a good starting point for anyone looking to invest in the burgeoning ethanol industry in India.
Consider reading: Best Renewable Energy Stocks in India
FAQs on Best Ethanol Stocks in India: Biofuel Stocks
Which is the best ethanol stock in India?
The best ethanol stocks in India for 2023 include Shree Renuka Sugars, Bajaj Hindusthan Sugar, EID-Parry (India), Dhampur Sugar Mills, Dwarikesh Sugar Industries, Dalmia Bharat Inds, and Globus Spirits. These companies have shown strong performance in the ethanol market and offer potential investment opportunities.
Which is the No. 1 ethanol company in India?
Bajaj Hindusthan Limited is the number one ethanol company in India. With its headquarters located in Mumbai, the company has been a pioneer in the Indian sugar industry since its establishment in 1931. Bajaj Hindusthan Sugar Ltd holds the distinction of being the largest sugar and ethanol manufacturer in the country
Which company is the largest producer of ethanol in India?
Bajaj Hindusthan Sugar Company, headquartered in Bombay, is the leading producer of ethanol in India. Established in 1931, it has become a pioneer in the country’s sugar industry, setting a benchmark for ethanol production as well. With its extensive experience and expertise, Bajaj Hindusthan Sugar Company holds the top position in ethanol production in India.
Is it good to Invest in the Best Ethanol Stocks in India?
Investing in ethanol stocks can be favorable when crude oil and other non-renewable fuel prices are high. It’s essential to monitor the cost of agricultural commodities, such as corn, which is directly linked to ethanol prices due to its widespread use in production. Stay informed for optimal investment opportunities in ethanol.
