India ranks first globally in sugar production, with 37 metric tons of sugar produced in 2022. In addition to this, the demand for sugar is constantly on the rise, providing opportunity for growth. But what are the best sugar stocks in India? Read on to find out.
Best Sugar Stocks in India
Sugar stocks are the stocks of companies involved in the business of production and sale of sugar and sugar-based products.
Some of the best sugar stocks to buy in India are as under:
- Shree Renuka Sugars
- EID Parry (India)
- Balrampur Chini Mills
- Dalmia Bharat Sugar and Industries
- Triveni Engineering and Industries
1. Shree Renuka Sugars
Shree Renuka Sugars Ltd is a leading player in the Indian sugar industry and also one of the largest producers of sugar globally. The company has 11 mills out of which 4 are in Brazil and 7 in India.
The company’s product line includes sugar, ethanol, organic manure, and electricity.
- Shree Renuka Share Price: ₹46.60
- Market Cap: ₹9,969 Cr
2. EID Parry (India)
EID Parry (India) Ltd is an Indian company involved in the business of sugar and nutraceuticals. The company came into existence in 1,788 and has its headquarters in Chennai. It has 6 sugar plants and 1 distillery in South India.
EID Parry (India) Ltd is the first company to start sugar manufacturing in India. It is one of the best sugar stocks to buy in 2024.
- EID Parry India Share Price: ₹565.25
- Market Cap: ₹10,020 Cr
3. Balrampur Chini Mills
Balrampur Chini Mills Ltd leads in sugar manufacturing in India. The company came into existence in 1975. It has diversified its business from sugar to distillery and cogeneration.
The company has created a variety of co-products like molasses, alcohol, ethanol, and bagasse for power generation.
- Balrampur Chini Share Price: ₹396.25
- Market Cap: ₹7,836 Cr
4. Dalmia Bharat Sugar and Industries
Dalmia Bharat Sugar and Industries Ltd started its first sugar manufacturing unit in 1994 at Ramgarh village in Uttar Pradesh. The company has been a supplier of sugar to brands like Dabur, PepsiCo, D-Mart, Britannia, and many others.
Dalmia Bharat presently has a total cane-crushing capacity of 35,500 tons of cane per day. It is one of the best sugar stocks to invest in 2023.
- Dalmia Bharat Sugar Share Price: ₹2,320.05
- Market Cap: ₹42,020 Cr
5. Triveni Engineering and Industries
Triveni Engineering and Industries Ltd is a renowned sugar manufacturer in India. The company was founded in the year 1932.
It is involved in varied areas from the production of sugar, alcohol, and ethanol to power generation and even purification of water. Triveni Engineering and Industries Ltd has its headquarters in Noida.
- Triveni Engineering Share Price: ₹336.45
- Market Cap: ₹7,326 Cr
Factors That Affect Sugar Stocks
Factors that one needs to consider before investing in sugar stocks are as under:-
1. Global Sugar Demand and Supply
The supply and demand of sugar is affected by various factors like weather conditions, economic policies, government regulations, etc. These things need to be kept in mind while investing in sugar stocks.
2. Weather Conditions
Sugar crops are very sensitive to weather conditions. Drought, floods, natural disasters etc can affect sugar production. This impacts the stock price of sugar companies.
3. Financial Performance
Before investing in sugar companies, it is advisable to go through their financial performance. Go through the revenues, EBITDA, profit, etc. of the company. Strong financials represent the growth of the company.
The sugar industry consists of a lot of regulations. This includes environmental laws, food safety parameters, labor laws, and more.
The sugar industry in India faces tough competition. You should invest in companies that have competitive advantages.
How to Trade & Invest in the Best Sugar Stocks?
There are multiple ways to trade and invest in sugar stocks. For long-term investors, sugar companies are commonly found in the portfolio of mutual funds.
While they may be in conjunction with stocks of other companies, investors can buy and sell the best sugar stocks individually via a demat account with a broker such as Dhan.
If you wish to trade, you can opt for futures and options of sugar stocks in addition to trading individual stocks. In any case, it is important to ensure that you have a battle-tested strategy to lean on.
In this blog, you have come across the five best sugar stocks to buy in 2024. As the consumption of sugar is forecasted to increase, sugar stock investments are becoming more and more likely. However, don’t forget to conduct your research before investing in sugar stocks.
Disclaimer: Our blogs are not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your due diligence before trading and investing.
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