Best Ethanol Stocks For March 2025 Based on 5Y CAGR: Piccadily Agro Industries, EID Parry and More

The Indian sugar industry plays an important role in the rural economy, supporting millions of sugarcane farmers and offering employment to about 5 lakh workers in sugar mills. As the largest global consumer and 2nd largest producer of sugar, India’s sugar sector provides significant growth opportunities for investors. In this article, find the best sugar sector stocks in India for March 2025, picked based on their 5-yr CAGR and other parameters like net profit margin and debt to equity ratio.

Best Ethanol Stocks in March 2025 – Based on 5yr CAGR

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore, with positive 1-year returns and are sorted as per their 5-yr CAGR.

Overview of the Best Ethanol Stocks in March 2025

1. Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd (PAIL) is involved in the manufacturing and selling of malt spirits in India. The company is also engaged in the manufacturing of ethanol, Extra Neutral Alcohol (ENA), and white crystal sugar. On a standalone basis, the company recorded a Profit After Tax (PAT) of ₹25.04 crore in Q3 FY24-25, reflecting a 32.14% growth. EBITDA stood at ₹50.86 crore, marking a 46.07% increase compared to Q3 FY23-24. The company’s total revenue for the quarter reached ₹208.32 crore, while the Net Profit Margin improved to 12.02%, reflecting a year-on-year growth of 21.78%.

Key metrics:

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

2. Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is amongst the largest Indian integrated sugar manufacturers. For the quarter ended December 31, 2024, the company reported a total income of ₹1,624.20 crore, compared to ₹1,762.01 crore in the previous quarter (September 30, 2024) and ₹1,575.55 crore in the same quarter last year. The company’s profit for the quarter stood at ₹42.57 crore, recovering from a loss of ₹22.42 crore in the previous quarter. However, it was significantly lower than the ₹137.40 crore profit reported in the corresponding quarter of the previous year.

Key metrics:

• ROCE: 17.59%
• ROE: 14.20%

3. E I D-Parry (India) Ltd

E.I.D. Parry (India) Limited (E.I.D. Parry) is involved in the manufacturing of sugar in India. The company belongs to the Murugappa Group. For the quarter ended December 31, 2024, consolidated revenue from operations stood at ₹8,720 crore, reflecting a 12% increase compared to ₹7,770 crore in the same quarter of the previous year. Consolidated profit after tax and non-controlling interest came in at ₹195 crore, up from ₹118 crore in the previous year’s corresponding quarter.

Key metrics:

• ROCE: 20.33%
• ROE: 8.67%

4. Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited (BCML) is amongst the largest Indian integrated sugar companies. For the quarter ended December 2024, revenue from operations stood at ₹1,192.15 crore, reflecting a 3.1% decline compared to ₹1,230.39 crore in the same quarter of the previous year. EBITDA (excluding other income) for the quarter was ₹123.78 crore, registering a 9.2% increase from ₹113.39 crore in the corresponding period last year.

Key metrics:

• ROCE: 20.82%
• ROE: 16.98%

5. Bannari Amman Sugars Ltd

Bannari Amman Sugars Limited is amongst the leading sugar manufacturers in India. For the quarter ended December 31, 2024, the total income stood at ₹42,284.64 lakh, compared to ₹47,536.44 lakh in the previous quarter and ₹76,969.78 lakh in the corresponding quarter of the previous year. The net profit for the quarter was ₹2,881.08 lakh, down from ₹3,426.69 lakh in the previous quarter and ₹6,806.54 lakh in the same period last year.

Key metrics:

• ROCE: 13.71%
• ROE: 9.40%

Best Ethanol Stocks in March 2025 Based on Net Margin

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore and are sorted as per their net profit margin.

Best Ethanol Stocks in March 2025 Based on Debt to Equity Ratio

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore and are sorted as per their debt to equity ratio.

Should You Invest in Ethanol Stocks?

Investing in ethanol stocks requires thorough analysis, as the sector faces potential risks such as commodity price fluctuations, regulatory changes, and competition from alternative energy sources. While the industry can hold a strong growth potential, stock performance can be influenced by policy shifts, market conditions, and technological advancements.

Conclusion

Ethanol, a versatile fuel, holds significant potential to drive positive change. Its widespread adoption can contribute to substantial savings on oil imports while promoting environmental sustainability. However, before investing in leading ethanol stocks in India, it is crucial to evaluate the various factors influencing the market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.