Best Sugar Stocks for March 2025 – Based on 5Y CAGR

India is the 2nd-largest producer of sugar globally, after Brazil. Sugarcane is primarily grown in nine states: Uttar Pradesh, Maharashtra, Karnataka, Punjab, Andhra Pradesh, Bihar, Gujarat, Haryana, and Tamil Nadu. As a key agro-based industry, it plays a significant role in the rural economy. The demand for sugarcane and sugar in India continues to rise due to their widespread use in industries such as food and beverages, bakery, confectionery, and more. In this article, we will explore the best sugar stocks based on 5Y CAGR.

Best Sugar Stocks for March 2025 – Based on 5Y CAGR

Note: The best sugar stocks were selected and sorted based on 5Y CAGR from the Nifty 500 Universe as of February 25, 2025

Overview of the Best Sugar Stocks for March 2025

Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is an Integrated and diversified conglomerate in the areas of sugar, ethanol and engineering. it is located strategically in the sugarcane-rich western and central belt of UP. Sugar prices in Q3 FY 25 were subdued, they have firmed up substantially recently based on lower estimates of net production of approximately 27 million tonnes of sugar in Sugar Season (SS) 2024-25 and timely announcement of exports.

Key metrics:

• Return on Capital Employed (ROCE): 14.2%
• Return on Equity (ROE): 14.8%

Shree Renuka Sugars Ltd

Shree Renuka Sugars Ltd does manufacturing and refining of sugar, ethyl alcohol, ethanol, generation and sale of power. During 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: 10.2%

E.I.D. Parry (India) Limited

E.I.D. Parry (India) Limited (E.I.D. Parry) is into manufacturing of sugar in India. The sugar segment’s revenue for the current quarter stood at ₹391 Crore, compared to ₹435 Crore in the same quarter last year, reflecting a 10% decline due to a reduced release quota. The segment posted a loss of ₹49 Crore, up from a loss of ₹14 Crore in the corresponding quarter of the previous year. This was driven by lower cane volume (12.70 LMT in Q3 Dec ’24 vs. 17.80 LMT in Q3 Dec ’23), reduced recovery, and increased cane costs.

Key metrics:

• ROCE: 13.5%
• ROE: 20.3%

Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. During Q3FY25, the sugar segment delivered strong results, supported by improved margins. The distillery segment, however, faced challenges due to lower recovery induced impacted by reduced Pol%.

Key metrics:

• ROCE: 13.8%
• ROE: 13.5%

Conclusion

Investing in sugar stocks can be promising, but it comes with certain risks and factors to consider. The sector is heavily influenced by agricultural conditions, government policies, and global commodity prices. While sugar companies may benefit from favourable weather conditions, higher release quotas, and improved recovery rates, they are also susceptible to challenges like fluctuating cane prices, cost pressures, and regulatory changes.

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.