Understanding Block Deals in Stock Trading: Key Rules, Interpretation, and Differences

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Ethanol stocks have been making a buzz in India for some time now. And, why should that not be the case? Ethanol is a by-product of the sugar manufacturing process; it is a renewable source of energy. It is often blended with gasoline to reduce pollution emitted by vehicles. In India, ethanol is mainly produced using sugarcane molasses. 

The demand for clean energy is rising worldwide due to concerns about climate change and pollution. Besides, India is a growing economy and its fuel requirements are expected to grow at a significant rate. This is where ethanol can play a huge role in driving India’s economy by reducing the harmful impact of carbon emissions. 

Now, let us talk about the best ethanol stocks in India.

Highlights

  • Triveni Engineering and Industries Ltd.
  • Balrampur Chini Mills Ltd.
  • Dwarikesh Sugar Industries
  • E I D-Parry (India) Ltd.
  • Shree Renuka Sugars

Triveni Engineering and Industries Ltd.

Triveni Engineering is one of the leading sugar manufacturing enterprises in the country. Its seven plants in Uttar Pradesh manufacture white crystal sugar. It is one of the largest ethanol manufacturers and it is growing rapidly. Between FY 2018-19 and FY 2022-23, its revenue grew at a compounded annual growth rate (CAGR) of 19% and its net profit grew by more than seven times. Aside from sugar, its other business verticals are: defense, power transmission, and water solutions. Performance-wise, It is one of the best ethanol stocks in India for investors.

Balrampur Chini Mills Ltd.

Established in 1970s, Balrampur Chini Mills Ltd. is a large sugar manufacturing company. Apart from sugar, it also manufactures alcohol, ethanol, molasses, and power. In other words, it is a diversified sugar manufacturer. With a cane crushing capacity of 80,000 tonnes/day, it is a major player in the industry. That said, the company’s financial performance has not been impressive recently. Between 2018-19 and 2022-23, its net sales have grown at a CAGR of 2.1%, while its net profit has declined at a CAGR of 16.2%.

Dwarikesh Sugar Industries

This is a diversified company, which manufactures sugar, power, ethanol, bagasse, sanitiser, pesticides, fertilisers, etc. While its main manufacturing units are located in Uttar-Pradesh, it also has operations in Delhi, Rajasthan, and Maharashtra. In the three years between FY 2019-2020 and 2022-23, the company has increased its ethanol manufacturing capacity from 30 kilo litres per day (KLPD) to 337.5 KLPD. Over four years from 2018-19 to 2022-23, the company’s earnings per share increased from Rs. 5.05 to 5.57, while its net profit margin decreased from 8.5% to 5%. 

E I D-Parry (India) Ltd.

This company is a part of Murugappa Group and is based out of Chennai. It manufactures sugars, super grains, sanitisers, and nutraceuticals. It is one of the leading ethanol manufacturers in the country. Besides, it is a global leader in organic spirulina and microalgal products. It is one of the oldest sugar manufacturers in India. It has also gained recognition for its efforts. For example, it is the first company in Asia to be conferred the Bonsucro International Certification for sustainable cultivation of sugarcane. The company has doubled its biofuel (ethanol) manufacturing capacity from 297 KLPD in December 2022 to 582 KLPD in April 2024.

Shree Renuka Sugars

Shree Renuka Sugars is one of the best ethanol stocks in India. The company’s main operations include the manufacturing of sugar, power, and ethanol. Its brand – Madhur Sugar – is the largest-selling sugar brand in the country. In FY 2022-23, the company reported its highest-ever ethanol production at 196 million litres; its ethanol production increased by 19% in the year. Between FY 2018-19 and 2022-23, its revenue and operating profit grew at a CAGR of 19% and 16%, respectively.

Sources:

1.   https://groww.in/blog/best-ethanol-stocks-in-india

2.  https://www.smallcase.com/collections/ethanol-stocks-in-india/#triveni-engineering-and-industries-ltd

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

7.5 Lacs+ Users

icon-with-text

4.3+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4300 Cr MTF Book

icon-with-text