Best Sugar Stocks in September 2024 – Based on 5yr CAGR

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The sugarcane and sugar industry in India is the 2nd largest agro-based sector, after cotton. India leads the world in sugar production, with ~34 million metric tons produced in 2023-2024. This sector supports the livelihoods of sugarcane farmers in rural areas and employs around 5,00,000 workers in sugar mills. There are several companies contributing to this sector. In this article, check the best sugar stocks in India for September 2024, based on the 5-yr CAGR. 

Best Sugar Stocks in September 2024 – Based on 5yr CAGR

Note: List of stocks in sugar sector provided here is as of September 11, 2024. The stocks selected have a market cap of more than ₹5,000 crore and are sorted as per their 5-yr CAGR.

Overview of the 5 Best Sugar Stocks in September 2024

• Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd (PAIL) is the largest independent manufacturer and seller of malt spirits in India and also manufactures ethanol, Extra Neutral Alcohol (ENA), CO2 and White crystal sugar. In FY 2024, the company’s total income was ₹82,894.14 lakh, compared to ₹63,634.75 lakh in FY 2023. The net profit for the year ended March 31, 2024, was ₹11,037.50 lakh, up from ₹2,329.57 lakh in FY 2023.

Key metrics:

• Return on Capital Employed (ROCE): 37.40%
• Return on Equity (ROE): 38.43%

• Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is one of the largest Indian integrated sugar manufacturers. The company is also involved in engineering businesses, spanning power transmission, water and wastewater treatment solutions, and defence. In FY 2024, the company’s total income was ₹6,21,342 lakh, compared to ₹6,39,051 lakh in FY 2023. The net profit for the year ended March 31, 2024, was ₹39,516 lakh, dropped from ₹1,79,180 lakh in FY 2023. 

Key metrics:

• ROCE: 17.59%
• ROE: 14.20%

• Shree Renuka Sugars Ltd

Shree Renuka Sugars is amongst the largest sugar and green energy producers in India. The company is also a leading sugar manufacturer. They operate 8 state-of-the-art sugar mills, many of which have integrated ethanol and power co-generation capability. In FY 2024, the company’s total income was ₹1,13,674 million, compared to ₹91,065 million in FY 2023. The profit for the year ended March 31, 2024, was -₹6,272 million, compared to a loss of ₹1,967 million in FY 2023. 

Key metrics:

• ROCE: 20.97%

• E I D-Parry (India) Ltd

E.I.D. Parry (India) Limited (E.I.D. Parry) is one of the leading sugar manufacturers in India. The company is a part of the Murugappa Group, one of the leading business conglomerates in India.  In FY 2024, the company’s total income was ₹29,716.92 crore, compared to ₹35,283.02 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,617.57 crore, declined from ₹1,827.74 crore in FY 2023. 

Key metrics:

• ROCE: 20.33%
• ROE: 8.67%

• Bajaj Hindusthan Sugar Ltd

Bajaj Hindusthan Sugar Limited (BHSL) is one of the leading sugar and ethanol manufacturing companies in India. In FY 2024, the company’s total income was ₹6,146.33 crore, compared to ₹6,360.34 crore in FY 2023. The profit for the year ended March 31, 2024, was -₹86.92 crore, compared to a loss of ₹134.74 crore in FY 2023. 

Key metrics:

• ROCE: 0.71%
• ROE: -1.93%

Sugar Industry in India

India’s status as a major sugar-consuming nation is well-earned, with rising consumption of ice cream, baked goods, confectionery, mithai (Indian sweets), and processed food and beverages, all of which rely heavily on sugar. This increased demand for consumer products has contributed to a total sugar consumption of 31 million metric tons in 2023-2024. In addition to being the world’s top sugar producer, India is also the 3rd largest exporter of sugar globally.

Conclusion

Apart from these, there are several other sugar industry stocks. Before investing, carefully analyse the company’s business, financial performance, and future outlook. Talk to a financial advisor for personalised advice.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.