Ethanol Stocks in India – Ethanol Stocks

Ethanol stocks in India represent shares of companies involved in ethanol production, typically used as a biofuel or blended with gasoline. These companies are part of the renewable energy and agriculture sectors.

The table below shows the ethanol stocks in India based on the highest market capitalisation and 1-year return.

Introduction to Best Ethanol Stocks

Praj Industries Ltd

The Market Cap of Praj Industries Ltd is Rs. 15,122.30 crores. The stock’s monthly return is 9.46%. Its one-year return is 29.15%. The stock is 3.93% away from its 52-week high.

Praj Industries Limited, headquartered in India, is a biotechnology company with various business segments. These include BioEnergy, Praj HiPurity Systems (PHS), Critical Process Equipment & Skids (CPES), Wastewater Treatment, and Brewery & Beverages. 

The BioEnergy division focuses on technology solutions for different types of biofuels, ranging from conventional ethanol to advanced biofuels like compressed biogas. The company’s subsidiary, PHS, provides high-purity water systems and modular process systems for various industries, including biopharmaceuticals and nutraceuticals.  

Balrampur Chini Mills Ltd

The Market Cap of Balrampur Chini Mills Ltd is Rs. 12,289.80 crores. The stock’s monthly return is -5.43%. Its one-year return is 29.91%. The stock is 13.65% away from its 52-week high.

Balrampur Chini Mills Limited, headquartered in India, is a sugar manufacturing company that is also involved in the production and sale of ethanol, ethyl alcohol, co-generated power, and agricultural fertilizers. 

The company operates through three segments: Sugar, Distillery, and Others. The Sugar segment focuses on selling sugar and its by-products, while the Distillery segment sells industrial alcohol, including ethanol to oil marketing companies, as well as other products to institutional buyers.  

Isgec Heavy Engineering Ltd

The Market Cap of Isgec Heavy Engineering Ltd is Rs. 10,829.43 crores. The stock’s monthly return is 6.37%. Its one-year return is 53.43%. The stock is 8.04% away from its 52-week high.

Isgec Heavy Engineering Limited, an India-based company involved in diversified heavy engineering activities, operates in two main segments: manufacturing of machinery and equipment, and engineering, procurement, and construction (EPC). 

The machinery and equipment segment focuses on producing process plant equipment, presses, castings, boiler tubes, and containers. The EPC segment undertakes projects and provides turnkey solutions for a variety of facilities including sugar plants, distilleries, power plants, boilers, air pollution control equipment, buildings, and factories.  

Shree Renuka Sugars Ltd

The Market Cap of Shree Renuka Sugars Ltd is Rs. 9,220.62 crores. The stock’s monthly return is -0.88%. Its one-year return is -15.16%. The stock is 31.49% away from its 52-week high.

Shree Renuka Sugars Limited, an agri-business and bio-energy company based in India, is involved in the production of sugar, ethyl alcohol, ethanol, and power generation.

Its business segments consist of Sugar milling, Sugar refinery, Distillery, Co-generation, Trading, Engineering, and Others, offering a range of products including sugar, ethanol, power, and organic manure. The company operates 11 mills across India and Brazil, with capabilities in ethanol and power co-generation.

Triveni Engineering and Industries Ltd

The Market Cap of Triveni Engineering and Industries Ltd is Rs. 8,844.65 crores. The stock’s monthly return is -3.78%. Its one-year return is 2.54%. The stock is 28.9% away from its 52-week high.

Triveni Engineering and Industries Limited is an India-based company involved in sugar production and engineering, including power transmission, water and wastewater treatment, and defense. The company operates in two main segments: Sugar and Allied Businesses, and Engineering Businesses. 

It produces white crystal sugar at around seven manufacturing plants in Uttar Pradesh, using molasses from sugar production as the primary raw material for ethanol and extra neutral alcohol. Its power transmission division specializes in high-speed and niche low-speed gears and gearboxes, supplying original equipment manufacturers (OEMs), offering aftermarket services, and retrofitting gearboxes to meet the needs of the power sector, other industries, and defense.  

Piccadily Agro Industries Ltd

The Market Cap of Piccadily Agro Industries Ltd is Rs. 7,184.41 crores. The stock’s monthly return is 3.2%. Its one-year return is 234.23%. The stock is 19.59% away from its 52-week high.

Piccadily Agro Industries Limited, headquartered in India, specializes in the manufacturing of sugar and distillery products. The company has two main divisions: Sugar and Distillery. The Sugar segment includes sugar, molasses, power, and bagasse among its products. The Distillery segment offers liquor, malt, carbon dioxide gas, and ethanol. 

In terms of production, the Sugar Mill has generated about 667,800 quintals of sugar and approximately 318,982 quintals of molasses.  

Bannari Amman Sugars Ltd

The Market Cap of Bannari Amman Sugars Ltd is Rs. 4,412.34 crores. The stock’s monthly return is -1.23%. Its one-year return is 39.38%. The stock is 13.48% away from its 52-week high.

Bannari Amman Sugars Limited, an India-based company, is involved in the manufacturing of sugar, power generation through co-generation, production of industrial alcohol, and granite products. 

The company operates in segments including Sugar, Power, Distillery, and Granite Products. It operates five sugar factories with a combined capacity of 23,700 metric tons (MT) of sugarcane crushing per day and 129.80 megawatts (MW) of Cogen power. Three of its sugar factories are located in Tamil Nadu, while the other two are in Karnataka. The company also has two distillery units with a total production capacity of 217.50 kiloliters per day (KLPD), in addition to agri-natural fertilizer and granite processing units.  

Bajaj Hindusthan Sugar Ltd

The Market Cap of Bajaj Hindusthan Sugar Ltd is Rs. 4,407.13 crores. The stock’s monthly return is -2.83%. Its one-year return is 3.75%. The stock is 33.43% away from its 52-week high.

Bajaj Hindusthan Sugar Limited is a sugar and ethanol manufacturing company based in India. The company’s operations are divided into segments including Sugar, Distillery, Power, and Others. 

They are involved in the production of sugar, industrial alcohol, and electricity generated from bagasse. The company offers sugar products in various sizes and grades such as large, medium, and small. Byproducts from their sugar manufacturing process include molasses, bagasse, fly ash, and press mud.  

Globus Spirits Ltd

The Market Cap of Globus Spirits Ltd is Rs. 2,634.91 crores. The stock’s monthly return is -15.62%. Its one-year return is 8.86%. The stock is 50.08% away from its 52-week high.

Globus Spirits Limited, located in India, focuses on manufacturing and selling a variety of alcoholic beverages, including Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol, Hand Sanitizer, and Franchise Bottling. 

The company is divided into manufacturing and consumer business segments. Its consumer products include popular brands like Ghoomar, Heer Ranjha, Shahi, Goldee-Blue and Red, Globus Special Series GR8 Times, Rajputana, Globus Spirits Dry Gin, White Lace, and TERAI India Dry Gin. Manufacturing products consist of grain-neutral alcohol, bioethanol, special denatured spirits, technical alcohol, and fusel oil. 

Dhampur Sugar Mills Ltd

The Market Cap of Dhampur Sugar Mills Ltd is Rs. 1,224.84 crores. The stock’s monthly return is -6.33%. Its one-year return is -30.95%. The stock is 52.25% away from its 52-week high.

Dhampur Sugar Mills Limited, an Indian company, is involved in the comprehensive processing of sugarcane. The company manufactures and sells sugar, chemicals, ethanol, and generates power through co-generation. 

Additionally, it utilizes by-products such as bagasse and molasses in its distillery and power generation operations. The company’s business segments include Sugar, Power, Ethanol, Chemicals, Potable Spirits, and Others. Within these segments, the company is engaged in various activities such as sugar production, power generation and sales, ethanol production and sales, manufacturing, and selling of ethyl acetate, production and sale of country liquor, as well as selling petrol and agricultural products.  

What are Ethanol Stocks?

Ethanol stocks represent shares in companies that produce or distribute ethanol, a renewable fuel made from plant materials, primarily corn. These stocks are an investment opportunity in the growing biofuel industry, which seeks to reduce reliance on fossil fuels and lower greenhouse gas emissions.  

Investing in ethanol stocks can be influenced by various factors, including government policies promoting renewable energy, advancements in production technologies, and changes in agricultural markets. As the demand for cleaner energy sources increases, these stocks may present a potential for growth and returns in the sustainable energy sector.

Features of Top Ethanol Stocks in India

The key features of ethanol stocks in India involve favorable government policies. Companies in this sector are positioned to benefit from increasing ethanol blending requirements and supportive regulations, which enhance their growth prospects.

1. Expanding Production Capacity: Leading ethanol companies are investing in expanding their production facilities. This increased capacity allows them to meet growing demand and capitalize on opportunities in both domestic and international markets.
2. Technological Advancements: Top ethanol stocks are involved in adopting advanced technologies for efficient production. Innovations in ethanol extraction and processing enhance productivity and reduce costs, giving these companies a competitive edge.
3. Strong Market Demand: Rising demand for ethanol, driven by government mandates for ethanol-blended fuels and increasing environmental awareness, supports the growth of these stocks. This demand stability contributes to their financial performance.
4. Strategic Partnerships: Companies in the ethanol sector often form strategic alliances with energy firms and agricultural producers. These partnerships enhance their supply chain, secure raw materials, and provide market access, boosting their overall performance.

Ethanol Stocks To Buy In India 2024 Based on 6 Month Return

The table below shows the ethanol stocks to buy in India in 2024 based on a 6-month return.

List Of The Best Ethanol Stocks In India Based on 5 Year Net Profit Margin

The table below shows the list of the best ethanol stocks in India based on 5-year net profit margin.

Best Ethanol Stocks in India Based on 1M Return

The table below shows the best ethanol stocks in India based on a 1-month return.

High Dividend Yield Ethanol Stocks List

The table below shows the high dividend yield ethanol stocks list.

Historical Performance of Ethanol Companies Stock in India

The table below shows the historical performance of ethanol companies stock in India.

Factors to consider when investing in Top Ethanol Stocks in India

The factor to consider when investing in top ethanol stocks in India is the sector’s growth potential.  

1. Government Policies: Supportive policies and incentives for biofuels, such as subsidies and blending mandates, boost ethanol production. These measures can lead to increased revenue and stock appreciation for companies operating in this sector.
2. Raw Material Availability: Ethanol production relies on the availability of feedstock like sugarcane and corn. Consistent supply and favorable agricultural conditions are crucial for maintaining production levels and profitability, impacting stock performance.
3. Technological Advancements: Innovations in ethanol production technology can enhance efficiency and reduce costs. Companies investing in modern technologies may gain a competitive edge, leading to higher stock values and investor interest.
4. Market Demand: Growing demand for ethanol as a renewable fuel and blending component in gasoline drives revenue growth. Higher consumption rates in both domestic and international markets can positively influence stock performance.
5. Financial Health: Assess the financial stability of ethanol companies, including revenue, profit margins, and debt levels. Strong financial performance and low debt can indicate robust growth prospects and contribute to favorable stock performance.

How to invest in Ethanol Stocks in India?

To invest in ethanol stocks in India, first, research companies involved in ethanol production. Open a brokerage account like Alice Blue and track these companies on stock exchanges like NSE or BSE. Analyze their financial performance, ethanol production capacity, and market trends before purchasing shares through your broker.

Impact of Government Policies on Best Ethanol Stocks In India

Government policies significantly impact the ethanol industry in India by influencing production incentives and regulatory frameworks. Supportive policies, such as subsidies and blending mandates, encourage investment in ethanol production, making it an attractive sector for investors. 

Tax incentives and favorable trade policies further boost ethanol stocks by improving profit margins and market stability. Conversely, restrictive regulations or abrupt policy changes can create uncertainty and affect stock performance.

Investors should closely monitor government announcements and policy shifts to assess potential impacts on the ethanol sector and adjust their investment strategies accordingly.

How Ethanol Related Stocks In India Perform in Economic Downturns?

During economic downturns, ethanol-related stocks in India often face mixed performance. The sector can be resilient due to government support and increasing ethanol blending mandates, which ensure steady demand. This stability helps mitigate the impact of broader economic challenges.

However, economic slowdowns can reduce industrial activity and consumer spending, potentially affecting ethanol demand. Investors should evaluate each company’s exposure to economic fluctuations and government policies to gauge how well ethanol stocks might weather downturns and adjust their investment strategies accordingly.

Advantages of investing in Ethanol Stocks?

The primary advantage of investing in ethanol stocks is the sector’s robust growth potential driven by government policies promoting ethanol use. These policies include blending mandates and incentives and creating a supportive environment for investment.

1. Government Support: With favorable policies and subsidies, the ethanol industry benefits from steady demand and financial incentives. This backing ensures a stable investment environment and potential for long-term growth.
2. Sustainable Energy Demand: Ethanol as a renewable energy source aligns with global sustainability goals, driving increased demand. This trend supports long-term investment potential and reduces dependency on fossil fuels.
3. Diversification: Investing in ethanol stocks provides diversification in energy portfolios, mitigating risks associated with traditional energy sectors. Diversification can stabilize returns and offer protection against market volatility.
4. Economic Resilience: The ethanol sector often shows resilience during economic downturns due to government mandates ensuring consistent demand. This stability can help protect investments from severe economic fluctuations.
5. Technological Advancements: Ongoing innovations in ethanol production technology improve efficiency and reduce costs. Investing in companies embracing these advancements can enhance profitability and attract investor interest.

Risks of investing in Ethanol Stocks?

The main risk of investing in ethanol stocks is the sector’s vulnerability to fluctuating government policies. Sudden regulatory changes or reduced incentives can impact profitability and create investment uncertainty.

1. Regulatory Changes: Shifts in government policies or reductions in subsidies can adversely affect ethanol production and market stability. Investors must stay informed about policy developments to anticipate potential impacts on their investments.
2. Market Volatility: Ethanol prices can be volatile due to factors like feedstock costs and global market conditions. This volatility can lead to unpredictable returns and increased risk for investors in the ethanol sector.
3. Technological Risks: Reliance on specific technologies for ethanol production poses risks if these technologies fail or become outdated. Investments in companies with outdated or unproven technologies may face higher risks and reduced returns.
4. Economic Dependence: The ethanol sector’s performance is closely tied to economic conditions and fuel prices. Economic downturns or declines in fuel prices can negatively impact ethanol demand and investor returns.
5. Environmental Concerns: Environmental regulations and concerns about the sustainability of ethanol production can pose risks. Changes in environmental policies or negative perceptions of ethanol’s impact can affect market performance and investment attractiveness.

Ethanol Stocks India GDP Contribution

Ethanol stocks in India contribute to the GDP by supporting the country’s renewable energy sector and enhancing agricultural value chains. As the government promotes ethanol blending and production, the industry stimulates economic growth through job creation and increased investment in infrastructure.

Moreover, the ethanol sector helps stabilize rural economies by providing additional income sources for farmers and boosting local industries. This economic contribution aligns with India’s broader goals of energy independence and sustainable development, further integrating ethanol’s role in national economic performance.

Who Should Invest in Top Ethanol Stocks?

Investing in top ethanol stocks can be a strategic move for those seeking growth in the renewable energy sector. Ethanol stocks offer potential benefits due to government policies and market trends favoring sustainable energy solutions.

1. Renewable Energy Enthusiasts: Investors passionate about green energy and sustainability will find ethanol stocks appealing, as they align with global trends towards renewable energy sources and reduced carbon emissions.
2. Long-Term Investors: Those with a long-term investment horizon may benefit from the growth potential of ethanol stocks, driven by government mandates and increasing demand for biofuels over time.
3. Diversification Seekers: Investors looking to diversify their portfolios can consider ethanol stocks to spread risk across different sectors, balancing traditional investments with renewable energy opportunities.
4. Risk-Tolerant Investors: Given the volatility in commodity prices and regulatory risks, individuals who can tolerate higher risk may find ethanol stocks attractive for their potential high returns. 

What Is The Current Ethanol Production Capacity In India?

India’s ethanol production capacity is approximately 1,623 crore liters annually. This includes 1,016 crore liters needed for ethanol blending with petrol to meet the country’s 20% blending target by 2025. The production is split between 875 crore liters from molasses-based distilleries and 505 crore liters from grain-based sources​.

Best Ethanol Stocks In India – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.