Best Ethanol Manufacturers and Producers Stocks to Invest in India
Ethanol is a by-product of the sugar industry. A variety of plant sources, such as sugarcane, corn, and wheat, produce this renewable fuel. A blend of gasoline and a clean-burning fuel is used to reduce harmful emissions from vehicles. People consider ethanol a biofuel, and it is one of the most widely used alternative fuels in the world.
Additionally, ethanol producers primarily produce ethanol from sugarcane molasses in India and use it as a fuel additive to gasoline. Thus, due to the rising demand for cleaner energy sources and the government’s shift towards sustainable and green energy sources, the ethanol industry in India is slowly gaining momentum.
As a result, the stock market has shown a keen interest in ethanol stocks, and the ethanol share prices of ethanol-producing companies in India have risen significantly over the years. In this blog, we will explore ethanol stocks in India and how to invest in them.
Top 10 Ethanol Stocks in India Based on 1-yr Return
| Ethanol Stock Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) |
|---|---|---|---|---|
| Piccadily Agro Industries Ltd | 6,705.16 | 710.75 | 61.09 | 189.57 |
| Sir Shadi Lal Enterprises Ltd | 195.04 | 371.50 | -21.25 | 168.13 |
| Prudential Sugar Corp Ltd | 213.06 | 66.06 | 33.98 | 110.72 |
| SBEC Sugar Ltd | 293.17 | 61.52 | -24.19 | 75.77 |
| Khaitan (India) Ltd | 45.60 | 96.00 | 33.78 | 74.86 |
| Kesar Enterprises Ltd | 150.49 | 149.30 | 1.80 | 61.81 |
| E I D-Parry (India) Ltd | 14,434.43 | 812.90 | 16.04 | 56.87 |
| Balrampur Chini Mills Ltd | 13,086.46 | 648.65 | 24.49 | 54.13 |
| Bajaj Hindusthan Sugar Ltd | 4,937.77 | 38.71 | -57.14 | 53.00 |
| Indian Sucrose Ltd | 235.19 | 135.35 | 7.18 | 51.52 |
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 on this list of ethanol production companies in India is from 11th October 2024. The data on this list has been taken from the Tickertape Stocks Screener, using the following parameters:
- Sub-sectors: Consumer Staples > Sugar
- 1-yr Return: Sorted from highest to lowest
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Top Ethanol Stocks in India: An Overview
Piccadily Agro Industries Ltd
Piccadily Agro Industries Ltd, incorporated in 1994, operates in agro-based industries with a primary focus on sugar manufacturing and alcoholic beverages, particularly Indian Made Foreign Liquor (IMFL). The company runs a sugar mill and a distillery, contributing to both domestic and international markets. Additionally, Piccadily is involved in power generation through co-generation plants using bagasse, a by-product of sugarcane.
The company’s market capitalisation is Rs. 6,705.16 cr., and the stock price is Rs. 710.75. Its price-to-earnings (PE) ratio stands at 61.09. The 1-year return is 189.57%.
Sir Shadi Lal Enterprises Ltd
Sir Shadi Lal Enterprises Ltd, established in 1933, operates in the sugar industry and is involved in distillery operations. The company produces a wide range of sugar products and also engages in agricultural activities. It has a long history in sugar production, primarily serving the northern Indian market. The company has expanded its operations to include the manufacturing of alcohol as part of its distillery segment.
Sir Shadi Lal Enterprises Ltd has a market capitalisation of Rs. 195.04 cr., and the stock is trading at Rs. 371.50. It has a negative PE ratio of -21.25 and a 1-year return of 168.13%.
Prudential Sugar Corp Ltd
Prudential Sugar Corp Ltd, incorporated in 1990, is engaged in the production of sugar and related products. The company operates sugar mills and is involved in the processing of sugarcane to produce refined sugar. Prudential Sugar has focused on improving its production efficiency to meet domestic sugar demand, which is heavily influenced by agricultural conditions and government policies.
The market capitalisation of Prudential Sugar Corp Ltd is Rs. 213.06 cr., and the stock price is Rs. 66.06. The PE ratio is 33.98, and the company has delivered a 1-year return of 110.72%.
SBEC Sugar Ltd
SBEC Sugar Ltd, founded in 1991, is part of the UK-based SBEC Group and operates in sugar manufacturing. The company specialises in processing sugarcane to produce high-quality refined sugar. SBEC Sugar uses modernised techniques and technologies to improve sugar production. It also produces by-products, such as molasses, which are used in distillery operations.
SBEC Sugar Ltd has a market capitalisation of Rs. 293.17 cr., with a stock price of Rs. 61.52. The company has a negative PE ratio of -24.19, and the 1-year return is 75.77%.
Khaitan (India) Ltd
Khaitan (India) Ltd, incorporated in 1936, is involved in sugar production and distillery operations. The company produces sugar, molasses, and alcohol using sugarcane as its primary raw material. Khaitan has a long-established presence in the Indian sugar industry and has expanded its business to include ethanol production, which is in line with the government’s push for ethanol blending in fuels.
The company’s market capitalisation is Rs. 45.60 cr., and the stock price is Rs. 96.00. Its PE ratio is 33.78, and the 1-year return is 74.86%.
Kesar Enterprises Ltd
Kesar Enterprises Ltd, founded in 1933, is primarily engaged in sugar production, distillery operations, and power generation. The company produces sugar from sugarcane and has diversified into ethanol production, which plays a key role in fuel blending in India. Kesar Enterprises also generates electricity through co-generation plants using bagasse, which is a by-product of sugarcane processing.
The company has a market capitalisation of Rs. 150.49 cr., and the stock price is Rs. 149.30. Its PE ratio is 1.80, and the 1-year return is 61.81%.
E I D-Parry (India) Ltd
E I D-Parry (India) Ltd, incorporated in 1788, is one of the oldest companies in India and a leading player in the sugar industry. It is part of the Murugappa Group and operates multiple sugar mills across India. E I D-Parry is also involved in ethanol production and contributes to the government’s ethanol-blending programme. Additionally, the company has diversified into the production of nutraceuticals and bio-products, making it a multi-segment player in the agro-business sector.
E I D-Parry (India) Ltd has a market capitalisation of Rs. 14,434.43 cr., with a stock price of Rs. 812.90. The PE ratio stands at 16.04, and the company’s 1-year return is 56.87%.
Balrampur Chini Mills Ltd
Balrampur Chini Mills Ltd, founded in 1975, is one of India’s largest integrated sugar companies. The company operates ten sugar mills across Uttar Pradesh and produces sugar, ethanol, and electricity through its cogeneration plants. Balrampur Chini is also a key player in ethanol production, benefiting from the Indian government’s focus on increasing ethanol blending in fuel.
The company’s market capitalisation is Rs. 13,086.46 cr., and the stock is trading at Rs. 648.65. The PE ratio is 24.49, and the 1-year return is 54.13%.
Bajaj Hindusthan Sugar Ltd
Bajaj Hindusthan Sugar Ltd, incorporated in 1931, is the largest sugar producer in India and one of the largest in Asia. The company operates several sugar mills and is also involved in ethanol production and power generation through cogeneration. Bajaj Hindusthan plays a crucial role in ethanol blending, supporting the government’s efforts toward cleaner fuel alternatives.
The company’s market capitalisation is Rs. 4,937.77 cr., with a stock price of Rs. 38.71. It has a negative PE ratio of -57.14, and the 1-year return is 53.00%.
Indian Sucrose Ltd
Indian Sucrose Ltd, incorporated in 1990, is engaged in the production of sugar and related by-products. The company operates primarily in northern India and focuses on producing high-quality refined sugar. Indian Sucrose also generates electricity through co-generation using bagasse, a by-product of sugarcane processing. The company is focused on enhancing operational efficiency and increasing production capacity.
Indian Sucrose Ltd has a market capitalisation of Rs. 235.19 cr., and the stock price is Rs. 135.35. The PE ratio is 7.18, and the 1-year return is 51.52%.
How to Invest in Ethanol Stocks in India?
Investors like you who are interested in sustainable and alternative energy sources are choosing to invest in ethanol company shares, making it a popular choice. Thus, there are several ways to invest in the top ethanol stocks in India, including:
- Online Brokerage: Many online brokerage platforms offer access to a range of ethanol stocks in India, including producers and manufacturers. Before making investment decisions, you can research and compare different top ethanol stocks in India.
- Direct Investment: You can also consider investing directly in ethanol listed companies in India through private equity or venture capital firms. This option is typically reserved for high-net-worth individuals and institutional investors.
- ETFs: Another way to invest in the top ethanol stocks India is through exchange-traded funds (ETFs) that specialise in alternative energy or renewable energy stocks. These funds typically hold a diversified portfolio of ethanol stocks, offering you exposure to portfolio investing and management.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Ethanol Sector in India
The use of ethanol as a fuel dates back to the early 20th century when it was first used in the United States as a fuel additive to increase octane ratings and reduce air pollution. In the 1970s, India started producing ethanol from sugarcane primarily for industrial purposes. However, the Indian government recognised the potential of ethanol as a renewable fuel in the early 2000s, and since then, the production and use of ethanol have been steadily increasing, with numerous ethanol manufacturers in India ramping up production.
The International Energy Agency states that India is predicted to become the world’s third-largest ethanol economy by 2026, surpassing the United States and Brazil. Currently, ethanol company stocks in India are on the rise, with several ethanol manufacturing companies in India involved in the production and sale of ethanol. The Indian government has set a target of achieving 20% ethanol blending with petrol by 2025, which is expected to boost the demand for an ethanol production company in India in the coming years. This has led to a surge in the ethanol share prices of ethanol-producing companies in India, with investors showing keen interest in this sector. Many investors are now looking for the best ethanol stocks in India to capitalise on the rising demand.
What are Ethanol Stocks?
Ethanol stocks are shares in companies that produce, manufacture or distribute ethanol fuel. Ethanol is mainly derived from corn, sugarcane, and other plant materials and is commonly blended with petrol to create a cleaner-burning fuel. These companies can include agricultural firms growing raw materials, manufacturers operating ethanol plants, and energy firms distributing the final product. Several top ethanol companies in India are involved in this supply chain, contributing to the growing list of ethanol company stocks in India.
Investing in ethanol company stocks means buying shares in companies that could benefit from increasing ethanol fuel demand. Government policies, global energy needs, and environmental concerns often influence this demand. The price of ethanol and its related products also impacts the value of these stocks. Investors looking for ethanol penny stocks or other promising investments often focus on the ethanol manufacturers in India, particularly those listed in the ethanol share list.
Why Invest in Ethanol Stocks?
Investing in ethanol stocks offers several compelling benefits. Firstly, it provides an opportunity to diversify your investment portfolio, mitigating the impact of market volatility and risk by adding a different asset class to your holdings. Additionally, ethanol, being a commodity, can serve as a hedge against inflation. As the prices of commodities like ethanol tend to increase with inflation, investing in the top ethanol stocks in India can help protect your capital’s purchasing power during times of rising prices. Investors may focus on finding the best ethanol stocks in India or even explore ethanol-based stocks that are more niche, such as ethanol penny stocks.
The rise of ethanol production company in India has been significant, with some ethanol companies’ stock in India seeing impressive growth. Companies involved in the ethanol sector, whether it be ethanol banane wali companies or large-scale ethanol manufacturing companies in India, offer a wide range of investment opportunities. Whether looking for the top 8 ethanol stocks or emerging ethanol production companies in India, the ethanol sector is an exciting avenue for potential growth. Investors are advised to keep a close eye on ethanol companies in India to maximise their returns as the country progresses toward its ethanol-blending targets.
Performance Parameters for Ethanol Shares in India
Here are some of the main factors that may affect the performance of ethanol sector stocks in India:
Government Policies
Governments can provide subsidies and tax incentives to ethanol-producing companies, which can increase ethanol share prices. In India, the government has introduced policies like the National Biofuel Policy and the Ethanol Blending Program. These aim to promote the use of biofuels and reduce dependence on crude oil.
Crude Oil Prices
Ethanol is often used as a substitute for gasoline. So when crude oil prices rise, ethanol becomes more popular, which can increase the ethanol making company share prices in India. The inverse is also true. When crude oil prices fall, the decrease in demand leads to a decline in the share prices of ethanol related stocks in India.
Weather Conditions
Ethanol is produced from crops like corn, sugarcane, and wheat. These crops are highly susceptible to weather conditions. Droughts, floods, and other extreme weather events can reduce crop yields, leading to a decrease in ethanol production and lower stock prices.
Ethanol Production Capacity
Ethanol production capacity is a critical factor affecting ethanolshare prices. Thus, an ethanol-producing company has a higher production capacity and can meet the demand for ethanol, leading to an increase in ethanol share prices.
Exchange Rates
Many ethanol blending companies in India export their products to other countries, and fluctuations in exchange rates can affect their revenue. Thus, a decrease in the local currency makes exports more competitive and boost revenue. Leading to an increase in ethanol share prices.
Advantages of Investing in Ethanol Stocks
Investing in ethanol stocks in India can offer you several benefits. Ethanol, a renewable fuel produced from plant matter, has gained popularity as an alternative to fossil fuels. Some of the advantages of investing in the top ethanol stocks in India include:
- Environmentally Friendly: Ethanol is a clean-burning fuel that emits fewer greenhouse gases and pollutants than traditional gasoline. As a result, ethanol shares are popular among investors who are environmentally conscious. Also, who wants to support ethanol making companies in India that promote sustainable practices.
- High Demand: Experts expect the demand for ethanol stocks to increase significantly in the coming years due to the rising need for alternative fuels. Ethanol producers in India and other countries are in an ideal position to benefit from this trend. Thus, this makes investing in ethanol stock a potentially lucrative opportunity.
- Government Support: To promote the use of ethanol as a fuel source many governments around the world offer incentives and subsidies. Thus, government support can help reduce the risks associated with investing in ethanol stocks and make them a more attractive option for you.
Challenges Associated with Ethanol Stocks Investing
Investing in ethanol stocks can offer lucrative opportunities for you, but there are several challenges associated with it. Some of the significant challenges that you might face while investing in ethanol stocks in India include:
- Fluctuating Prices: The commodity price of corn highly influences ethanol stocks since it is the primary source of ethanol production. The prices of corn and ethanol are volatile and can fluctuate significantly, thus, making it challenging for you to predict future returns of even the largest producer of ethanol in India.
- Competition from Alternatives: Other alternative sources of fuel, such as electric vehicles and hydrogen fuel cells, intensely compete with ethanol producers and manufacturers in India. This competition can limit the demand for ethanol shares and simultaneously impact the growth potential of even the largest ethanol producing company in India.
- Political and Regulatory Risks: Ethanol stocks are also vulnerable to political and regulatory risks. Changes in government policies and regulations can have a significant impact on even the biggest ethanol producers in India. Ethanol investors need to keep track of changing regulations, tax incentives, and subsidies that may impact the industry and thereby even the biggest ethanol producer in India.
To Wrap It Up…
To conclude, the ethanol companies have played a crucial role in the Indian economy as well as lifestyle. Thus, these companies have expanded their production capacities and increased their market presence. India is home to several leading ethanol companies, making a significant mark in the global ethanol industry in India. Rising global demand has driven the Indian ethanol market to new heights, with an anticipated CAGR of 9.16%. By 2029, the market is projected to reach $4.15 billion. Investors should conduct thorough research into this promising industry before making any investment decisions.
Frequently Asked Questions About Ethanol Stocks in India
Compared to crude oil and other fuels, Ethanol stands as a more environmentally friendly energy source, leading to higher demand, particularly in nations like China with a growing preference for biofuels.
The future of ethanol sector in India is bright. Government policies, demand for eco-friendly fuel, and increasing use of excess grains and sugarcane are driving the growth of ethanol sector in India.
Here is an ethanol stocks list in India consisting of the top 5 ethanol stocks in India based on their 1-yr returns:
1. Piccadily Agro Industries Ltd
2. Sir Shadi Lal Enterprises Ltd
3. Prudential Sugar Corp Ltd
4. SBEC Sugar Ltd
5. Khaitan (India) Ltd
Note: The data on this list of top ethanol producing companies in India was taken on 11th October 2024.
If you have the financial resources to support yourself, Ethanol stocks can be a great investment. However, one must evaluate their investment goals and risk appetite before investing.
Ethanol, as a more environmentally friendly energy source compared to crude oil and other fuels, experiences increased demand. However, investors must evaluate both growth potential and challenges before investing in an ethanol making company.
Discover Other Collections:
Keep yourself informed and up-to-date on a variety of thematic sectors by reading the articles below:
