The Indian government has been actively promoting the use of ethanol as a fuel additive for automobiles. This has led to significant growth in the country’s ethanol industry over the years.
Initially, the government mandated a blending target of just 1.5 percent from 2005 to 2014. However, this target was later increased to 10 percent during the 2014-2022 period. Now, the government has set a more ambitious target of 20 percent blending from 2025 onwards.
As a result of these policy changes, the demand for ethanol is expected to rise substantially, reaching around 1,016 crore litres. This, in turn, is expected to increase the worth of the ethanol industry in India from around Rs. 9,000 crore to over Rs. 50,000 crore, a jump of more than 500 percent, as per the projections of government.
The majority of ethanol in India is produced by sugar manufacturers, many of which are listed on stock exchanges. These ethanol stocks offer investors an opportunity to be a part of the country’s growing ethanol industry. The performance of these stocks is closely linked to the government’s ethanol blending program and sugar prices.
Following are the ethanol stocks with their total manufacturing capacity:
Shree Renuka Sugars Limited
With a market cap of Rs. 10,614.8 crore, the shares of one of India’s largest sugar and green energy producer grew by 1.3 percent to hit an intraday high at Rs. 51.45 on Friday, as against its previous closing price of Rs. 50.77.
Financially, the company experienced substantial growth in its revenue from operations, showing a notable year-on-year increase by 48.8 percent from Rs. 2,328.5 crore in Q4 FY22-23 to Rs. 3,466.3 crore in Q4 FY23-24.
However, the consolidated net profit of Shree Renuka Sugars declined from a profit of Rs. 44.6 crore to a loss of Rs. 111 crore, during the same period.
As of the latest data, Shree Renuka Sugars has a total ethanol production capacity of 1,250 KLPD, which was increased from 720 KLPD.
Over the past year, the stock has delivered positive returns of nearly 15.2 percent and so far in 2024, it has also shown gains of around 5.3 percent.
Shree Renuka Sugars Limited, a subsidiary of Wilmar Sugar and Energy Pte Ltd Singapore, is primarily engaged in the manufacturing and refining of sugar, ethyl alcohol, ethanol, generation and sale of power. It is a leader in the branded sugar segment in the country and the largest sugar refiner in India.
Balrampur Chini Mills Limited
With a market cap of Rs. 8,989 crore, the shares of one of the largest integrated sugar manufacturing companies in India grew by 1.6 percent to hit an intraday high at Rs. 451.95 on Friday, as against its previous closing price of Rs. 444.85.
Financially, the company experienced a fall in its revenue from operations, showing a year-on-year decline of 3.8 percent from Rs. 1,491.5 crore in Q4 FY22-23 to Rs. 1,434.3 crore in Q4 FY23-24.
Similarly, its after-tax profit decreased during the same period from Rs. 254.4 crore to Rs. 203.4 crore, indicating a decline of 20 percent.
Balrampur Chini Mills presently have an aggregate sugarcane crushing capacity of 80,000 TCD, distillery and co-generation operations of 1,050 KLPD (kilo litres per day) and 175.7 MW (saleable) respectively.
Over the past year, the stock has delivered positive returns of nearly 14.7 percent and so far in 2024, it has also shown gains of around 6.3 percent.
Balrampur Chini Mills Limited is mainly engaged in the manufacturing of sugar, whereas its allied business activities include the manufacturing and marketing of Ethyl Alcohol and Ethanol, generation and selling of power.
Triveni Engineering and Industries Limited
With a market cap of Rs. 9,375.4 crore, the shares of one of the largest integrated sugar producers in India grew by 4.3 percent to hit a new 52-week high at Rs. 433.65 on Friday, as against its previous closing price of Rs. 415.75.
Financially, the company experienced a fall in its revenue from operations, showing a year-on-year decline of 14.8 percent from Rs. 1,818.3 crore in Q4 FY22-23 to Rs. 1,548 crore in Q4 FY23-24.
Similarly, its after-tax profit also fell during the same period from Rs. 190.3 crore to Rs. 161 crore, indicating a decline of 15.4 percent.
Triveni Engineering recently commissioned a 200 KLPD multi-feed distillery at its sugar unit at Rani Nangal. This expansion has increased the company’s total distillation capacity to 860 KLPD.
Over the past year, the stock has delivered positive returns of nearly 54.8 percent and so far in 2024, it has also shown gains of around 24 percent.
Triveni Engineering & Industries Limited is engaged in diversified businesses, mainly categorised into two segments – Sugar & allied businesses and Engineering business.
Sugar & allied businesses primarily comprise the manufacturing of sugar and distillation of alcohol, while the Engineering business mainly comprises the manufacturing of high-speed gears, gearboxes and providing water/waste-water treatment solutions.
E I D-Parry (India) Limited
With a market cap of Rs. 14,172 crore, the shares of one of the largest manufacturers of Sugar in India grew by 3.3 percent to hit an intraday high at Rs. 807.2, as against its previous closing price of Rs. 781.65.
Financially, the company experienced a decline in its revenue from operations, showing a year-on-year drop of 19 percent from Rs. 6,860.3 crore in Q4 FY22-23 to Rs. 5,557 crore in Q4 FY23-24.
However, its after-tax profit expanded during the same period from Rs. 287 crore to Rs. 294.3 crore, indicating robust growth of 2.5 percent.
E I D-Parry presently have a distillery capacity of 417 KLPD, with 140 MW of co-generation capacity.
Over the past year, the stock has delivered positive returns of nearly 73.3 percent and so far in 2024, it has also shown gains of around 42.5 percent.
Incorporated in 1975, E.I.D. – Parry (India) Limited, a part of the Murugappa Group, operates through four operating segments: sugar, cogeneration, distillery, and nutraceuticals.
