High Dividend Yield Sugar Stocks under Rs 500

The table below shows the high dividend yield sugar stocks under Rs 500 based on the Highest Market Capitalization.

What Are The High Dividend Yield Sugar Stocks under Rs 500?

High dividend yield sugar stocks under ₹500 refer to shares of companies in the sugar industry that offer significant dividend payouts relative to their share price. These stocks are attractive to investors looking for regular income through dividends while investing in a key agricultural sector. They provide an affordable way to benefit from steady dividend income, with the potential for growth driven by the cyclical nature of the sugar industry.

Features Of High Dividend Yield Sugar Stocks under ₹500

The main features of high dividend yield sugar stocks under ₹500 offer an intriguing investment opportunity, combining affordability with the potential for regular income. 

1. Consistent Dividend Payments: Sugar companies that offer high dividend yields typically have a history of consistent dividend payments, providing a reliable income stream to investors, especially during profitable seasons.
2. Affordability: Priced under ₹500, these stocks are accessible to a wide range of investors, allowing them to invest in the agricultural sector without needing significant capital outlay.
3. Cyclical Revenue Patterns: Sugar stocks often experience cyclical revenue patterns due to factors like harvest seasons and commodity price fluctuations. Companies that manage these cycles well can offer stable dividends even in off-peak periods.
4. Government Influence: The sugar industry often benefits from government policies, subsidies, and price controls, which can help stabilize company revenues and support sustained dividend payouts.
5. Domestic and Global Demand: Sugar is a staple commodity with consistent domestic demand, and opportunities for export during global shortages can boost revenues, further supporting high dividend yields. 

Best High Dividend Yield Sugar Stocks under 500

The table below shows the best high dividend yield sugar stocks under Rs.500 based on the highest day Volume.

Top High Dividend Yield Sugar Stocks under Rs 500 in India

The table below shows the top high dividend yield sugar stocks under Rs 500 in India based on 1-Year Return. 

Factors To Consider When Investing In High Dividend Yield Sugar Stocks under Rs 500

The factors to consider when investing in high dividend yield sugar stocks under ₹500 include understanding the cyclical nature of the sugar industry and the company’s ability to manage these cycles.  

1. Dividend Consistency: Evaluate the company’s history of dividend payments. Consistent dividends, even during low sugar price cycles, indicate a strong financial position and prudent management.
2. Sugarcane Supply: Assess the company’s access to a reliable and sufficient supply of sugarcane, as it directly impacts production and revenue, thereby influencing dividend sustainability.
3. Government Policies: Consider the impact of government regulations, subsidies, and pricing controls on the sugar industry. These factors can significantly influence profitability and the company’s ability to pay dividends.
4. Export Capabilities: Analyze the company’s ability to export sugar, especially during times of domestic surplus. Strong export capabilities can help maintain revenue and support consistent dividend payments.
5. Cost Management: Evaluate the company’s ability to manage production and operational costs effectively. Efficient cost management is crucial in an industry with fluctuating commodity prices, ensuring continued profitability and dividends.

How To Invest In High Dividend Yield Sugar Stocks Under 500?

To invest in high dividend yield sugar stocks under ₹500, start by conducting thorough research to identify companies that consistently pay dividends and have strong financials. Open a Demat account with a reliable broker, such as Alice Blue. Once your account is set up, analyze the financial health, market position, and dividend history of the selected stocks. Make your investment decisions based on your risk tolerance and financial goals.  

Advantages Of Investing In High Dividend Yield Sugar Stocks Under 500

The primary advantage of investing in high dividend yield sugar stocks under ₹500 is the potential for consistent dividend income, particularly in a sector that benefits from government support and essential demand.

1. Affordable Entry Point: Priced under ₹500, these stocks are accessible to a wide range of investors, allowing for diversification into the agricultural sector without a significant initial investment.
2. Regular Income Stream: High dividend yield sugar stocks can provide a steady income stream through dividends, particularly attractive for income-focused investors.
3. Government Support: The sugar industry often benefits from government subsidies and policies, providing a level of stability that supports regular dividend payouts.
4. Sector Resilience: Sugar is a staple product with consistent demand, which helps maintain steady revenue streams and supports reliable dividend payments.
5. Potential for Growth: Sugar companies involved in value-added products like ethanol or power generation may offer additional growth opportunities, potentially leading to higher dividends and capital appreciation.

Risks Of Investing In High Dividend Yield Sugar Stocks under ₹500

The main risk of investing in high dividend yield sugar stocks under ₹500 is the potential for dividend cuts during periods of low sugar prices or poor harvests, which can impact company profitability.

1. Cyclical Nature of the Industry: The sugar industry is highly cyclical, with prices influenced by factors like weather conditions and global demand. During downturns, companies may struggle to maintain dividends.
2. Regulatory Risks: Government policies, including price controls and export restrictions, can directly impact profitability, potentially leading to lower or suspended dividend payments.
3. Volatility in Sugar Prices: Fluctuations in sugar prices can significantly affect revenue and profitability, which may result in reduced dividends during periods of low prices.
4. Weather Dependency: Sugar production is heavily dependent on weather conditions. Poor monsoons or other adverse weather events can lead to lower production, affecting revenue and dividend payouts.
5. High Debt Levels: Some sugar companies operate with high levels of debt. In times of low profitability, servicing this debt can strain finances, leading to potential dividend cuts.

Introduction to High Dividend Yield Sugar Stocks under ₹500 

Balrampur Chini Mills Ltd

The Market Cap of Balrampur Chini Mills Ltd is Rs. 9718.26 crore. The stock’s monthly return is 12.10%. Its one-year return is 17.44%. The stock is 4.26% 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.  

Triveni Engineering and Industries Ltd

The Market Cap of Triveni Engineering and Industries Ltd is Rs. 8,709.95 crores. The stock’s monthly return is 0.87%. Its one-year return is 23.61%. The stock is 16.25% away from its 52-week high.

Triveni Turbine Limited, headquartered in India, specializes in manufacturing industrial steam turbines. The company focuses on producing and supplying power generation equipment and solutions, with manufacturing facilities based in Bengaluru, Karnataka. 

Triveni has provided approximately 6,000 steam turbines to various industries in more than 75 countries worldwide, spanning regions such as Europe, Africa, Central and Latin America, Southeast Asia, and South Asia. 

Dalmia Bharat Sugar and Industries Ltd

The Market Cap of Dalmia Bharat Sugar and Industries Ltd is Rs. 3,208.03 crores. The stock’s monthly return is -3.13%. Its one-year return is 3.90%. The stock is 28.74% away from its 52-week high.

Dalmia Bharat Sugar and Industries Limited, an Indian company, is primarily involved in the production of sugar, generation of power, manufacturing of industrial alcohol, and production of refractory products. 

The company operates across four segments. The Sugar Manufacturing Segment focuses on the production and marketing of sugar. The Power Generation Segment involves generating and selling power, with some of it being used for internal consumption. The Distillery Segment is responsible for manufacturing and selling ethanol, extra-neutral alcohol, and sanitizer.  

Uttam Sugar Mills Ltd

The Market Cap of Uttam Sugar Mills Ltd is Rs. 1247.69 crore. The stock’s monthly return is -7.06%. Its one-year return is -14.84%. The stock is 71.15% away from its 52-week high.

Uttam Sugar Mills Limited, an India-based company, specializes in the production of sugar, industrial alcohol, and power generation. The company is divided into three segments: Sugar, Cogeneration, and Distillery. 

Its industrial product range includes Liquid Sugar, Pharma Sugar, Natural Brown, Sulphur-free Sugar, Double Refined Sugar, Invert Sugar Syrup, Plantation White Sugar, Sulphur-free Bura, and more. Additionally, it offers consumer products like Superfine Sugar, Mishri Candy Sugar, White Sugar Sachet, Brown Sugar Sachet, Table Sugar, Brown Sugar Cubes, and others.  

Dhampur Bio Organics Ltd

The market cap of Dhampur Bio Organics Ltd is Rs. 884.15 crore. The stock’s monthly return is -6.69%. Its one-year return is -23.67%. The stock is 49.13% away from its 52-week high.

Dhampur Bio Organics Ltd. is an Indian company that integrates sugarcane processing operations. The company focuses on producing sugar, chemicals, ethanol, and power generation, among other related products. 

Its business segments include Sugar, Bio Fuels & Spirits, and Country Liquor. The Sugar segment involves manufacturing and selling various types of refined sugar and its byproducts, as well as producing power through co-generation. The Bio-Fuels & Spirits segment focuses on industrial alcohol sales, primarily ethanol, to both public and private oil marketing companies and other institutional buyers.  

Kothari Sugars and Chemicals Ltd

The Market Cap of Kothari Sugars and Chemicals Ltd is Rs. 486.31 crores. The stock’s monthly return is -0.56%. Its one-year return is 20.24%. The stock is 30.62% away from its 52-week high.

Kothari Sugars and Chemicals Limited, an India-based company, specializes in the production of sugar, alcohol, and power. The company operates in three main segments: Sugar, Cogeneration of Power (Cogen), and Distillery. 

It runs two sugar factories with the ability to crush 6400 tons of cane daily and produce 33 MW of power, and a distillery with a capacity of 60 KLPD. The company’s facilities are located in Tamil Nadu, specifically the Kattur and Sathamangalam units. Its business spans across Asia and India, catering to both local and international markets.

Mawana Sugars Ltd

The Market Cap of Mawana Sugars Ltd is Rs. 446.13 crore. The stock’s monthly return is -7.86%. Its one-year return is 3.78%. The stock is 27.64% away from its 52-week high.

Mawana Sugars Limited is an Indian company that manufactures and markets sugar, ethanol, and power in its facilities. The company is organized into segments focused on sugar, power, chemicals, and distillery operations. 

Its product range includes various types of sugar catering to different industries, along with ethanol production from molasses. The company’s ethanol plant in Nanglamal has a daily capacity of 120,000 liters and can produce rectified spirit, denatured spirit, and fuel ethanol.  

Vishwaraj Sugar Industries Ltd

The Market Cap of Vishwaraj Sugar Industries Ltd is Rs. 320.54 crore. The stock’s monthly return is -2.40%. Its one-year return is -0.98%. The stock is 24.61% away from its 52-week high.

Vishwaraj Sugar Industries Limited is a fully integrated company that derives its operations from sugarcane. The company is involved in the production of sugar, electricity generation, and the manufacturing of rectified spirit, neutral spirit, and ethanol through its molasses/sugarcane syrup-based distillery. 

Its business segments consist of Sugar, Co-Generation, Distillery, and Vinegar. The company has established an integrated facility spanning approximately 132.85 acres, accommodating manufacturing, packing, and storage units. It operates a single-location sugar unit with a licensed crushing capacity of about 11,000 tons of cane per day (TCD). 

Top High Dividend Yield Sugar Stocks under Rs 500 – FAQs

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.