Best Sugar Stocks in January 2025 Based on 5yr CAGR – Piccadily Agro Industries, E I D-Parry & More

The sugar industry in India plays a vital role in the rural economy, supporting millions of sugarcane farmers and providing employment to around 5 lakh workers in sugar mills. As the largest global consumer and second-largest producer of sugar, India’s sugar sector offers significant growth opportunities for investors. In this article, find the best sugar sector stocks in India for January 2025, picked based on their 5-yr CAGR. Also, explore the pros and cons, and who should invest in sugar stocks.

Best Sugar Stocks in January 2025 – Based on 5yr CAGR

Note: The best sugar stocks list provided here is as of December 27, 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 Top Sugar Stocks in January 2025

1. Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd (PAIL) is an independent manufacturer and seller of malt spirits in India. The company is also involved in the manufacturing of ethanol, Extra Neutral Alcohol (ENA), and white crystal sugar. In FY 2024, the company’s total income was ₹82,894.14 lakh, up from ₹63,634.75 lakh in FY 2023. The net profit for the year ended March 31, 2024, was ₹11,037.50 lakh, which increased from ₹2,329.57 lakh in FY 2023. In H1 FY 2025, the company’s PAT was ₹39 crore, an increase of 68% YoY.

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 one of the largest Indian integrated sugar manufacturers. In FY 2024, the company’s total income was ₹6,21,342 lakh, down from ₹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. In H1 FY 2025, the company’s PAT was ₹8.6 crore, a drop of 91.1% YoY.

Key metrics:

• ROCE: 17.59%
• ROE: 14.20%

3. Shree Renuka Sugars Ltd

Shree Renuka Sugars is one of the largest sugar producers in India. The company operates 8 state-of-the-art sugar mills. In FY 2024, the company’s total income was ₹1,13,674 million, which grew from ₹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. In H1 FY 2025, the company’s total income was ₹53,752 million, a growth of 12% YoY.

Key metrics:

• ROCE: 20.97%

4. E I D-Parry (India) Ltd

E.I.D. Parry (India) Limited (E.I.D. Parry) is engaged in the manufacturing of sugar in India. The company belongs to the Murugappa Group. In FY 2024, the company’s total income was ₹29,716.92 crore, which declined from ₹35,283.02 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,617.57 crore, dropped from ₹1,827.74 crore in FY 2023. In H1 FY 2025, the company’s revenue from operations was ₹95 crore, a drop of 7% YoY.

Key metrics:

• ROCE: 20.33%
• ROE: 8.67%

5. Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited (BCML) is one of the largest Indian integrated sugar companies. In FY 2024, the company’s total income was ₹5,667.74 crore, up from ₹4,728.65 crore in FY 2023. The net profit for the year ended March 31, 2024, was ₹433.20 crore, which rose from ₹275.53 crore in FY 2023. In H1 FY 2025, the company’s profit for the period was ₹13,732.86 lakh, a drop from ₹23,975.66 lakh during the same period in the previous year.

Key metrics:

• ROCE: 20.82%
• ROE: 16.98%

Pros of Investing in Sugar Stocks

• Growing Demand: Sugar stocks can benefit from steady domestic consumption and growing global demand for sugar and ethanol.
• Ethanol Blending Opportunities: Government policies promoting ethanol blending boost revenue diversification and profitability for sugar companies.
• Export Potential: India’s position as a leading sugar exporter offers growth opportunities.
• Government Support: Subsidies and favourable policies aid in price stability and growth.

Cons of Investing in Sugar Stocks

• Cyclicality: Sugar stocks face price volatility due to supply-demand imbalances and cyclical production patterns.
• Climate Risks: Dependence on favourable monsoons and climate exposes sugarcane production to risks.

Who Should Invest in Sugar Stocks?

Investors with a long-term perspective may consider sugar stocks, as the sector is cyclical and influenced by factors like government policies, climatic conditions, and global demand. These stocks can be for those looking to diversify their portfolios with exposure to agriculture-based industries or capitalise on ethanol opportunities. However, understanding the risks of price volatility and regulatory changes is crucial.

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.