Best Sugar Stocks to Buy in India – List of Top 10 Sugar Industry Shares of 2023Last Updated Date: Aug 30, 2023
Check out the list of Best Sugar Stocks to Buy in India. Sugar is an integral part of our daily meals.
Whether you take it in your tea or use it to enhance the taste of the curry you are preparing, sugar is one of the inevitable ingredients in our kitchen.
So, in this article, we will talk about the Sugar Companies in India which are providing the best returns to the shareholders.
This article will cover the Top Sugar Stocks to buy, the parameters we have evaluated for finding these stocks, then many other details to help you choose the sugar stocks wisely.
Moreover, we will also talk about the sugar sector to give you an idea about how the sector is going to perform in the upcoming days.
Know about Sugar Sector in India
To understand which sugar sector stocks to buy, you need to first understand how the sector is performing.
As per a report in recent times, the Indian sugarcane sector can grow at 4.3% CAGR between the period 2020-2025.
This period will witness a surge and also a peak of sugar production in the country.
In 2021-2022, sugar production is expected to grow by 3% than the previous season.
The estimate is around 34.7 million metric tons of sugar production in this period. The central government is highly supportive of the sugar industry which is another benefit to the sector.
It has been implementing and increasing the fair and remunerative price (FRP), Minimum support price to promote the sugar industry and help the sugar producers.
So, all this government’s assistance, and the anticipated growth in this sector suggest that this is a good time to invest in sugar stocks in India.
So, let us find out in the upcoming sections which are the top sugar companies in India, where you can invest your money and earn good returns.
Best Sugar Stocks in India – List of Top 10 Sugar Sector Stocks to Buy Today
Check out the Sugar Share Price & Ranking of Best Sugar Shares to buy Today or Tomorrow or for Long Term –
According to our research and rankings, we have found that the ten best sugar shares in India are as given in the table above.
As you can see the first stock is E.I.D Parry (I) which has the highest market capitalization in the sector. It also provided a huge return in a short period.
Then there is Balrampur Chini Mill which comes second in our rankings as per the market capitalization.
Shree Renuka Sugar is the third-best sugar share to buy in India as per its market capitalization and other factors.
We will be discussing each of these ten sugar stocks and also some others in detail below.
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E.I.D. Parry (I) – Best Sugar Stocks in India
E.I.D. Parry (India) is a company that is engaged in the sugar and nutraceuticals business. It is a part of Murugappa Group which is one of the leading business houses in the country.
It was founded in 1788 which makes it a company with more than 200 years of experience. Parry is a brand in India and around the world when it comes to the sugar business.
This is our first pick as the best sugar stocks in India.
Why you should buy E.I.D. Parry (I)?
E.I.D. Parry (I) is the topmost sugar share to buy because of the following factors –
- The net cash flow of the company is increasing which primarily indicates growth in production and sales. Moreover, it is clearer as the cash flow from the operating activity is increasing which directly indicates the growth in production and revenue.
- On the technical front, RSI Indicator indicates price strength and thus it is a good buy at present.
- It has a good EPS of 26.87 for the premium 12 months and the TTM PE is also high at 18.92 which also indicates that the price of the stock is going to increase in the future.
- The TTM PE is also higher than the sector PE which is 16.35. This means E.I.D Parry (India) is having the power to beat the market returns as well.
- The stock has returned 41.82% in the last year which is way higher than market return/ sector return.
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Balrampur Chini Mill – Best Sugar Shares to Buy
The second-best sugar shares to buy are Balrampur Chini Mill stocks.
It is one of the leading sugar manufacturers in the country. It has a capacity of producing 76500 tonnes of cane per day.
The company has 10 sugar plants spread across the eastern and central regions of UP.
It is also into producing Ethanol which is a green fuel produced for use in vehicles by mixing with petroleum.
It also produces some other products like Bagasse which are by-products of sugar production.
Why should you buy Balrampur Chini Mills stocks?
The reasons for buying these sugar stocks in India can be the following –
- The first reason should be its market or sector beating PE. While the Sector PE is 16.35, Balrampur Chini Mill has a TTM PE of 21.35 which certainly suggests the potential of price increase for the shares.
- The second factor is the TTM EPS which is also high and standing at 20.70.
- The company has returned a whopping 136.8% return in just one year (past 1 year).
- If you look at its strengths, then it has a high Piotroski Score which suggests the fundamental analysis of the company are super strong.
- It has the highest recovery from a 52-week low as well.
- Another added benefit is that there is no threat analyzed or found in its SWOT analysis which can be beneficial for the company and its shareholders.
Shree Renuka Sugar – Top Sugar Sector Stock
As per our rankings, the third top sugar sector stock is Shree Renuka Sugar. It is a global agribusiness corporation that is also into bio-energy production.
It is one of the largest sugar producers across the globe and undoubtedly one of the leading in India.
Apart from sugar, it produces ethanol and power from bagasse. The mills of this company have a total capacity of producing 7.1 MTPA or 35000 TCD.
The sugar this company produces mainly gets supplied to the food and beverage industry.
Why should you buy Shree Renuka Sugar Stocks?
The reasons for choosing this stock can be –
- The sugar share price has been dipping in recent times but it showcases growth in its net profit with the increasing profit margin on a quarter on quarter basis. This suggests that the stock has the potential to grow in the future and the dip is temporary. Instead, this price dip can be beneficial for the investors of these stocks as they can purchase the shares at a lower price and then sell it for a high price.
- There has been positive growth after negative growth which is indicating the potential of the stock again.
- The company provided a huge 172.8% return in the last year even after negative returns for a few months in between.
- It has the third-largest share market capitalization in the sugar market.
Triveni Engineering & Industries – Top Sugar Companies in India
Triveni Engineering & Industries is our fourth pick for top sugar companies in India. It is the fourth largest company at present by market capitalization in the sugar sector.
It has 7 state-of-the-art FSSC 22000 certified sugar units. The mills are based in Uttar Pradesh.
It produces sugar and other products such as ethanol, potable alcohol, and bagasse for power as well.
They have 195k hectares of land under their sugarcane production units. A network of 300k+ farmers and they have a production capacity of 61000+ tonnes a day.
Why should you buy Triveni Engineering & Industries stocks?
The factors which make this stock a good buy are –
- This sugar share price has been steadily going up for the last 6 months. It has returned 23.9% in the last six months. In the past year, the return has been 238.03%, the highest in the market at present.
- It has a TTM PE of 17.65 which is more than the sector PE of 16.35.
- The EPS or Earnings per Share is also high at 15.08
- This company has a high Piotroski score which signifies the strong fundamentals of the company. Strong fundamentals in turn suggest the potential for growth of the company and so is the share price.
- There is a positive breakout first resistance which indicates a share price surge shortly.
- Another factor that makes it a good buy is its integrated operations capacity. They invest in advanced technologies as well.
Bannari Amman Sugars Ltd. – Sugar Share Price
Bannari Amman Sugars Ltd. is our fifth pick according to the market capitalization of the company.
This company is one of the largest sugar producers in the country and especially In the southern part of India.
It has a net worth of $270 and a sales turnover of around $570.
It established its first sugar mill back in 1986 which makes it a company with more than three decades of market presence.
The present capacity of the first unit is 4000 TCD. It has five plants in total across the country having a total of 17600 TCD in a day.
Why should you buy Bannari Amman Sugars Ltd. stocks?
The factors which make this stock an interesting buy are as follows –
- The first reason is the growth in its net profit which has increased along with the increase in profit margin on quarter to quarter analysis.
- Then there is another technical analysis factor that suggests potential growth in the sugar share price is the highest recovery from the 52 week low.
- It has a whopping TTM PE way too higher than the sector PE. PE Ratio of this company is 45.67 while the sector PE is only 16.35.
Similarly enough the TTM EPS is also quite high at 63.75. It is one of the highest in the sector as well making it one of the top sugar stocks in India.
Dalmia Bharat Sugar – Top 10 Sugar Stocks
In the sixth position, we have got Dalmia Bharat Sugar as per our research and rankings. It started its journey back in 1994 in Uttar Pradesh with its first unit of sugar production.
It has a present capacity of 2500 TCD in this unit. At present, the total capacity of cane crushing in this company is 35500 TCD, one of the highest in the sector.
It is one of the top 10 sugar stocks and the company supplies sugar to some of the biggest brands in the country such as Coca-Cola, Mondelez, Britannia, Wal-Mart India, and others.
It also has export facilities to many countries like the Middle East, Nepal, Bhutan, Sri Lanka, Malaysia, and others.
Why should you buy Dalmia Bharat Sugar stocks?
The factors for which you must keep an eye on this sugar share price are –
- It’s high TTM EPS which is 33.67 at present. This suggests the earning potential of the shareholders is quite high.
- Then there is the TTM PE which is also high but lower than the sector PE. It is 14.08 while the sector average is 16.35. It is a bit lower but a positive PE always indicates the growth potential of the company and the share price.
- The high Piotroski score suggests the strong fundamentals of the company which can help in its growth in the future.
- It has the highest recovery from 52 weeks low as well which is a positive factor
- It has returned 196.65% in the past year which is the second-highest return in the sugar industry.
- As per all major Intraday Indicators, Dalmia Bharat has shown good movement for traders.
Dhampur Sugar Mills – Best Sugar Stocks to Buy
The sugar shares in India which made up to the 7th position in our list is Dhampur Sugar Mills.
Dhampur Sugar is one of the most popular sugar companies in the country having more than 45000 metric tonnes of the capacity of crushing sugar in a day.
It has a capacity of producing 1700 MT of refined sugar per day. You can find the packets of five kg of Dhampur sugar in your nearby supermarkets.
It started its journey back in 1933 which is close to a century and now it is one of the top sugar companies by market share.
Why should you buy Dhampur Sugar Mills stocks?
Dhampur Sugar is one of the best sugar stocks to buy in India because –
- It has a positive TTM PE of 11.74. This suggests potential growth in the share price as the intrinsic value of the share is yet to be reached.
- The TTM EPS is another factor suggesting the growth potential of the shareholders in their investment. The TTM EPS is 32.55 which is quite a good metric.
- The company has been on recommendation list of all top brokers in India. They also keep this stock in their share market tips list to their clients which also suggest the strong potential of price rise.
- The high Piotroski score indicates the strong fundamentals of the company and thus suggests growth as well.
Bajaj Hindustan Sugar – Top Sugar Stocks to Buy
Bajaj Hindustan Sugar is the eighth pick for top sugar stocks to buy in 2022. This company is Asia’s number one and World’s number four integrated sugar company.
The capacity of crushing sugarcane per day is around 136000 tonnes per day which is one of the highest in the market at present.
It has plants in fourteen different locations. This company is also the largest producer of ethanol in India.
Moreover, it has pioneered India’s Fuel ethanol program. Bagasse is also produced in the sugar mills of this company.
Other by-products are also used across different sectors which are produced and sold by this company.
Why should you buy Bajaj Hindustan Ltd. stocks?
The reason for buying this sugar stock can be the following –
- The increasing investment from FII and FPIs. This is an indicator that the company has huge potential for growth otherwise attracting foreign investment is not an easy thing.
- Then there is the highest recovery from the 52 week low.
- This sugar stock has provided a whopping return of 144.78% in the last year even after the negative return in the last six months.
- Bajaj Hindustan Ltd. has the eighth highest market cap amongst the sugar companies in India.
Dwarikesh Sugar Industries – Best Sugar Companies in India
Dwarikesh Sugar Industries is the 9th pick in our list of best sugar companies in India. This company has a combined capacity of producing 21500 tonnes of sugar per day.
It has multiple plants across the country, especially in Uttar Pradesh.
Apart from sugar, their products include ethanol, bagasse for power, and hand sanitizers which are some of the most important products in the market in recent times.
In 1993, this company was established and in 2021, it has multiple plants and set up a huge 175 KLPD distillery as well.
Why should you buy Dwarikesh Sugar Industries Ltd. stocks?
If you are thinking of these sugar stocks to buy, then you can look at the factors to keep in mind –
- A high Piotroski score indicates its strong fundamentals. If the company has strong fundamentals, the share price is having the potential to shoot up. So, this can be a good buy for your portfolio.
- Secondly, the company is having high TTM EPS growth
- Then there is growth in the net profit of the company along with an increase in the profit margin
- The strong cash-generating ability from the core business is another important factor to consider if you want to buy this stock.
- Book value per share has been improving for the last two years as well.
- It has provided a huge 181.67% return in the past year which is the third-highest in the sector.
Avadh Sugar & Energy – Top 10 Sugar Shares to Buy
Our tenth pick out of the top 10 sugar shares to buy is Avadh Sugar & Energy. It has its registered office in Kolkata and has multiple plants across the country.
Why should you buy Avadh Sugar & Energy stocks?
This is the tenth sugar share to buy in our list for reasons which includes –
- The high TTM EPS which is at present 52.21
- It has a TTM PE of 11.78 which is also on the higher side but lower than the sector average.
- There is growth in the net profit of the company.
- The cash flows are improving from operations for the last two years.
- The stock price increased by 20% in the last month and by 139.98% in the past one year.
- The price is trading above short-term investment, medium-term investment, and long-term investment moving averages which signal price rise.
DCM Shriram Industries Ltd. – Sugar Sector Stock to Buy
The eleventh sugar sector stock to buy which is our first honorable mention as well is DCM Shriram Industries Ltd.
This company is focused on energy-intensive products and agri-business products. This stock can be a good buy because of its high TTM PE and TTM EPS.
Then the high Piotroski score suggests great fundamentals of the company. The rising net cash flow and cash from operating activities suggest growth in production and sales.
The company is having low debt which is another great reason for investing in it.
Uttam Sugar Mills – Sugar Companies Stocks to Buy
In our second honorable mention for sugar companies stocks to buy we have Uttam Sugar Mills.
Its primary business is manufacturing and marketing of sugar which has two varieties that are double sulfated and pure white sulphurless.
The reasons for buying this stock can be its increasing book value per share, high Piotroski score, rising net cash flow, improving RoCE, and similar factors.
This stock has gained over 20% in the last month and around 106.76% in the past year.
The technical analysis points out that the price is already moving over the short, medium as well as long-term moving averages which is a great sign of price rise and staying there.
Also, FII and FPI are increasing in this company which is another signal for growth and sustainability.
Vishwaraj Sugar Industries Ltd. – Sugar Companies Shares to Buy
In our list of sugar companies shares to buy, we have Vishwaraj Sugar Industries Ltd. in the thirteenth position and 3rd in the honorable mentions because of its market capitalization, increasing FII and FPI investment in the company.
The other reasons include strong annual EPS growth, improving ROE, and RoCE for the past two years, and even strong cash flow from core business operations.
All these suggest a great potential for this firm and thus it is on our list. The company was established in 1995 and it has been producing sugar as its primary product.
Apart from that, there are other by-products like ethanol, bagasse, and others.
Rana Sugars – Sugar Companies in India
The fourteenth place has been taken by Rana Sugar in the list of top sugar companies in India.
It has returned a whopping 328.06% to the shareholders which is one of the highest returns in the market.
Rana Sugars started its journey back in 1992 by collaborating with Punjab Agro Corporation. The reason for buying this stock can be the low debt ratio in the company.
Then the improving book value per share of the firm.
Then there is zero promoter pledge. One of the crucial factors is the increasing FII and FPI in the shareholding of the company which signifies the potential of the business.
Also on the technical front, the price is above the short, medium, and long-term MA.
Upper Ganges Sugar – Sugar Stock in India
The last but not the least sugar stock in India on our list is Upper Ganges Sugar which has returned 297.9% in the last year.
It is engaged in the production and manufacturing of sugars, ethanol, other industrial alcohol, and fertilizers.
The revenue of the company has been growing over the past years. The price is also above the short, medium, and long-term moving averages signifying price rise.
How to find Sugar Stocks for Trading?
If you want to do online trading in sugar stocks, then you have to first analyze the sugar industry as a whole.
You need to understand how the industry is performing.
As stated above, the sector is expected to grow at a CAGR of 4% + in the upcoming five years.
Now, once you are sure about the sector, it is time to find out the stocks.
So, the factors you need to consider while choosing sugar stocks are –
- Market capitalization
- Price to Earnings ratio or PE ratio
- Price trends, whether above or below moving averages of different span
- The return provided by the stocks in 1 year, 6 months and also in last 3 and 5 years.
- You must also look into its announcements, shareholding patterns, and other factors.
How to Invest in Sugar Sector Stocks in India?
To invest in sugar stocks you need to have a Demat account.
You have to do your analysis and choose the stocks you want to buy.
Then you can place your order using your trading terminal or the mobile app of your brokerage house that you are using.
You need to input the price at which you want to buy and the number of stocks you want to buy.
Then make the payment for the same and then the shares will be transferred to your Demat account.
Best Sugar Stocks to buy in India – Conclusion
To conclude, we hope the article above can help you find the top sugar companies in India.
We have provided all the details, from fundamentals to technical of the stocks so that you can make a wise decision in choosing the sugar stocks to buy.
Always check and compare all the factors before buying any stocks.
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