In this article, we explore the top ethanol stocks listed on India’s National Stock Exchange (NSE) for 2024. Based on the latest data, we compare these companies, ranked according to key financial metrics, to offer insights into their market performance and growth potential.
This article guide you to choose best ethanol stocks. Let’s see the top Ethanol Stocks in India 2024 based on market capitalisation.
Table of Contents
Top 5 Ethanol Stocks in India in 2024
| # | Company | Market Cap | Debt to equity |
|---|---|---|---|
| 1. | EID-Parry (India) | ₹13.811 Cr | 0.25 |
| 2. | Shree Renuka Sugars | ₹9,840 Cr | -4.03 |
| 3. | Balrampur Chini Mills Limited | ₹9,903 Cr | 0.59 |
| 4. | Triveni Engg | ₹8,323 Cr | 0.49 |
| 5. | Bajaj Hindusthan Sugar | ₹5,061 Cr | 0.86 |
Key Insights:
- EID-Parry (India) Ltd show a balanced mix of moderate P/E ratios and high ROEs, making them strong contenders.
- Shree Renuka Sugars Ltd has a high debt-to-equity ratio, indicating higher leverage, which could be a risk factor despite its substantial market cap.
- Balrampur Chini Mills Limited presents a balanced financial profile with a market cap of ₹9,903 Cr, a P/E ratio of 18.53, and an ROE of 15.72%.
- Triveni Engg has a solid ROE of 13.62%, indicating effective management and good returns on equity.
Let’s deep dive into the fundamentals of these top ethanol stocks in India.
#1. EID-Parry (India)
EID-Parry Limited is a Chennai based Indian Manufacturing company. In 1942 EID Parry opened its first sugar factory plant. It produces nutraceuticals, super grains, sanitisers and sugars. Additionally, it is the portion of the billion Murugappa Group. It runs 6 sugar factories and one separate distillery in south India. Its advanced innovative technology provides three services:
- Sugar crushing
- Co-generation
- Distillation
Furthermore, EID produces microalgal and organic spirulina globally. Its nutraceuticals sector has manufacturing factories in Tamil Nadu and it has important international certificates. It also has many subsidiaries which are involved in agriculture materials and refined sugar.
Fundamental financial information of EID-Parry (India)
| Market Cap | ₹13.811 Cr |
| P/E ratio | 15.35 |
| P/B ratio | 1.95 |
| Industry P/E | 16.70 |
| Debt to equity | 0.25 |
| ROE | 12.75% |
| EPS (TTM) | 50.68 |
| Dividend yield | 0.51% |
| Book value | 398.40 |
| Face value | 1 |
Data updated as of August 2024
#2. Shree Renuka Sugars
Shree Renuka Sugars is the one of biggest ethanol production companies in India. It is renowned for its refined sugars and its green energy business. Additionally, it maintains 8 sugar plants.
To enhance the country’s energy security, Shree Renuka sugar producers manufacture a maximum of 1,250 kilolitres of ethanol. They are ready to produce more ethanol beyond their capacity by using their innovative technologies.
Furthermore, they manufacture ethanol for generating electricity and blending ethanol with petrol. So they are essential contributors for the Indian government’s ethanol blending plan.
Fundamental financial information of Shree Renuka Sugars
| Market Cap | ₹9,840 Cr |
| P/E ratio | -15.06 |
| P/B ratio | 0.00 |
| Industry P/E | 16.70 |
| Debt to equity | -4.03 |
| ROE | 43.62% |
| EPS (TTM) | -3.07 |
| Dividend yield | 0.00% |
| Book value | -11.88 |
| Face value | 1 |
Data updated as of August 2024
#3. Balrampur Chini Mills Limited
Balrampur Chini Mills Limited is an Indian company, founded in 1975, located in West Bengal. It produces organic manure, bagasse, molasses, ethanol, alcohol, sugar.
Additionally, Balrampur Chini Mills operate power plants while producing sugar to generate electricity for their manufacturing requirements. It is crushing 80,000 tonnes of sugarcane daily.
Moreover, it has a distillery capacity of 1,050 kilolitres of ethanol per day with a 175.7 megawatts saleable co-generation capacity.
It has factories in 10 locations across the country with 24 innovative technologies. Further, it uses various composting technologies to create bio-composts to work with different brands such as, Devdoot, Jaiv-Shakti and Paudh-Sakti.
Fundamental financial information of Balrampur Chini Mills Limited
| Market Cap | ₹9,903 Cr |
| P/E ratio | 18.53 |
| P/B ratio | 2.91 |
| Industry P/E | 16.70 |
| Debt to equity | 0.59 |
| ROE | 15.72% |
| EPS (TTM) | 26.49 |
| Dividend yield | 0.61% |
| Book value | 168.57 |
| Face value | 1 |
Data updated as of August 2024
#4. Triveni Engg
Triveni Engg is one of the largest sugar manufacturing companies in India, located in uttar pradesh, established in 1932. It has 7 sugar plants across the country which produce white crystal sugar.
Additionally, Triveni Engg decided to use almost 12% of its sugar production, which is 4.5 million tonnes of sugar, to produce ethanol. It increased its production of ethanol from 660 kilolitres to 1,100 kilolitres per day.
Further, it operates different engineering businesses such as,
- Power transmission
- Water and wastewater treatment solutions
- Defence sector
Fundamental financial information of Triveni Engg
| Market Cap | ₹8,323 Cr |
| P/E ratio | 23.20 |
| P/B ratio | 2.87 |
| Industry P/E | 16.70 |
| Debt to equity | 0.49 |
| ROE | 13.62% |
| EPS (TTM) | 16.39 |
| Dividend yield | 1.51% |
| Book value | 132.52 |
| Face value | 1 |
Data updated as of August 2024
#5. Bajaj Hindusthan Sugar
Bajaj Hindusthan Sugar Limited (BHSL) is one of the best ethanol and sugar manufacturers in India, located in Maharashtra. It maintains 14 sugar factories in Khambharkhera, Palia Kalan, Budhana, Thana Bhawan, Gola Gokaran Nath, and others. These factories have the capacity to distil 800 kilolitres of alcohol per day and crush 136,000 tonnes of sugarcanes daily.
Furthermore, Bajaj Hindusthan Sugar produces 38 millions of ethanol annually. They also have plans to increase the production of ethanol around 218 million litres every year.
Moreover, it generates 430 megawatts of power from its sugar bagasse. It has 5 coal fired power plants to generate extra 450 megawatts.
Fundamental financial information of Bajaj Hindusthan Sugar
| Market Cap | ₹5,061 Cr |
| P/E ratio | -58.26 |
| P/B ratio | 1.16 |
| Industry P/E | 16.70 |
| Debt to equity | 0.86 |
| ROE | -1.93% |
| EPS (TTM) | -0.68% |
| Dividend yield | 0.00% |
| Book value | 34.28 |
| Face value | 1 |
Data updated as of August 2024
What is Ethanol?
Ethanol is a renewable and sustainable biofuel. It can be made from biomass such as food grains, trees, grass, sawdust, forestry residues, and other agricultural materials. These materials are used to produce ethanol biofuel.
Additionally, sugar makers also produce ethanol by using crops with high sugar content like corn, sugarcane, sugar beets and barley. It is the easiest way of biofuel production. In India the production of ethanol is 3.51% increased since 20171.
What are ethanol stocks?
Ethanol stocks refer to companies and sugar makers leading in the production of ethanol, a clean-burning biofuel derived from sugarcane, corn, and other plant materials.
The Ethanol Industry in India is getting popular among the investors who want to work with the green energy market. Its ethanol stocks play an important role among investors and they become a significant part of the ethanol growth industry.
When ethanol stocks are moving upward, the oil marketing companies have increased their biofuel purchases. Moreover, ethanol stocks attract foreign investments, benefiting the government and the economy. Because it is opted for ESG (Environment, Social, Governance) compliance. It is the perfect replacement for traditional fossil fuels.
Ethanol used for different application sectors,
- Cosmetics
- Polishes
- Plasticisers
- Plastics
- Automotive gasoline
- Alcoholic beverages
Ethanol Industry in India – A Brief Overview
Moreover, the Ethanol industry has experienced constant growth over the past years by government plans encouraging renewable sources and biofuel sustainability. Additionally, the Indian government’s main motives are:
- Increasing ethanol production
- Blending ethanol with petrol and diesel to reduce carbon emissions
- Reducing the dependency of imported fossil fuels
- Making different ethanol production plants across the country
According to the report, from 2023 to 2029 India’s ethanol industry will experience rapid growth in the global market, valued at USD 4.15 billion with a CAGR of 9.16%. There are many factors that will increase the growth of ethanol projects. These are:
- Increase the usage of ethanol based biofuel
- To expand the agricultural sector for the ethanol production
- Government started to invest in an ethanol project.
When the government mandated blending with automobiles, the ethanol production started to grow.
- From 2005 to 2015 – 1.5% blending target
- During 2014 to 2022 – 10% blending target
- Now 2024 to 2025 -20% blending target
As per the government report, when the demand of ethanol is increased to 1,016 litres and the ethanol industry produces rapidly 500% of ethanol to the worth of around Rs.9000 to 50,000.
Factors to Consider Before Investing in Ethanol Sector Stocks in India
Before decide to invest in ethanol sector stocks in India, consider these basic factors:
- Evaluate the market positions
- Consider industry dynamics
- Analyse the technological advancements
If an ethanol-producing company generates higher profits and revenue, its stock prices are likely to rise.
When ethanol stocks are appealing more investments, considering the influential factors will help investors to make informed decisions.
Let’s have a quick look to explore some of the important factors while investing top ethanol stocks in India.
Government biofuel Plan: The Indian government provides tax incentives and subsidies to the ethanol manufacturing companies. It will positively affect the stock prices of ethanol. Our government’s ethanol blending plan and National biofuel program will increase the stock price of ethanol. Additionally, sugar manufacturing companies will get more investment.
Weather Condition: The production of ethanol depends on crops like sugarcane and corn. If it is affected through the severe climate like floods and droughts, it will affect the production and stock prices.
Capacity of ethanol production: If sugar manufacturing companies boosts its production, it will meet the demand of requirement. It is a positive sign of ethanol stocks.
Analyse financial performance: Before investing check PE ratio, balance sheet, cash flow statements of the company.
Supply chain reliability: To avoid the production interruption, consider the companies that have a consistent supply of raw materials like sugar cane.
Why Should You Invest in Top Ethanol Stocks in India?
Ethanol stocks have potential growth due to increasing demand for biofuel and renewable energy. However, government policies, commodity prices, market dynamics, technological advancements, and regulatory changes can impact the ethanol stocks performance.
In India, the ethanol production industry provides promising investment possibilities across the country. To reduce carbon emission, the usage of renewable sources should be increased to enhance the country’s security.
FAQs
Which is the best ethanol stock in India?
#1. EID-Parry (India)
#2. Shree Renuka Sugars
#3. Balrampur Chini Mills Limited
#4. Triveni Engg
#5. Bajaj Hindusthan Sugar
What is the target of ethanol 2025?
In New Delhi Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, said the country reached 15% ethanol blending in May and is on toward to meet the 20% goal by 2025.
What is the bioethanol production in India in 2024?
FAS New Delhi expects India’s ethanol production in 2024 to reach approximately 6.35 billion litres (BL).
What is the future of ethanol in India?
India’s ethanol market was estimated at USD 6512.27 million in 2023 and is expected to grow at an 8.84% CAGR through 2029.
Disclaimer: Any stocks mentioned are not recommendations, so it is important to do your own research before investing. Market investments come with risk; please read the documents carefully before making a decision. Risk Disclosure Document should be read before making an investment in Equity Shares, Derivatives or other instruments like Mutual Funds etc as they are subject to market risks and there is no guarantee that objectives will be achieved. Senthilstocktrader does not guarantee any returns and past performance may not necessarily be indicative of future results.
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