Best Ethanol Stocks in India (2024)

Last Updated on Jan 29, 2024 by Harshit Singh

Ethanol, a versatile by-product of the sugar industry, has applications in various sectors, including plastics, polishes, plasticisers, medications, and cosmetics. In recent years, the surging demand for biofuels in India has led to the growth of ethanol companies. Many ethanol companies recorded big net profits this quarter, with many ethanol stocks recording triple-digit growth since the past year. 

Considering the growth and demand for ethanol, here is the list of the best ethanol stocks from ethanol producing companies in India.

Top 10 Ethanol Stocks in India based on 1Y Return

Note: The data is dated 29th January 2024. ​​The list of best ethanol stocks in India are based on the following parameters and sorted using Tickertape Stock Screener


  • Sub-sectors: Consumer Staples > Sugar
  • 1-yr Return: Sorted from highest to lowest

Top Ethanol Companies with Highest Net Income (Q)

Note: The data is dated 29th January 2024. ​​The ethanol stocks list are based on the following parameters and sorted using Tickertape Stock Screener

  • Sub-sectors: Consumer Staples > Sugar
  • Net Income (Q): Sorted from highest to lowest

Top Ethanol Stocks in India with Highest Dividend Yield

Note: The data is dated 29th January 2024. The list of ethanol company shares with highest dividend yield are based on the following parameters and sorted using Tickertape Stock Screener

  • Sub-sectors: Consumer Staples > Sugar
  • Dividend Yield: Sorted from highest to lowest

Advantages of investing in ethanol stocks

Since ethanol is a renewable fuel and the shift in the energy sector towards renewable energy sources can propel the rise in ethanol consumption in near future. Here are some of the reasons to explore ethanol stocks in India – 

  • Government Backed: Considering ethanol as a suitable alternative to fossil fuels, the government has introduced financial assistance schemes to increase ethanol production capacity in India.
  • Environment-Friendly: Ethanol as a fuel is less harmful than other fuels as it is a clean-burning fuel that emits greenhouse gases and pollutants within a specified limit. Therefore, it is considered as the fuel for the future, with many companies already incorporating ethanol for production and manufacturing products.
  • High Demand: For the above mentioned reasons, ethanol is in very much demand, which experts believe is expected to increase significantly in the coming years. As a result, ethanol companies in India are in an ideal position to benefit from this trend, which makes investing in ethanol stocks in India a potentially lucrative opportunity.


Challenges of investing in ethanol stocks in India

Even though there is a growing trend in ethanol consumption in India, there are several challenges associated with it. Such as, 

  • Fluctuating prices of commodities: Ethanol is produced by fermenting the sugar in the starches of grains such as corn, sorghum, and barley. Any change in the prices of these commodities will have a direct impact on the prices of ethanol production. 
  • Rise of other fuel sources: Electric vehicles and hydrogen fuel cells, among other alternative fuel sources, pose strong competition for ethanol producers and manufacturers in India. The rising demand in EV can potentially constrain the demand for ethanol, thereby affecting the growth prospects of ethanol stocks.
  • Political and regulatory risks surrounding ethanol: Shift in government policies and regulations can substantially influence the ethanol industry. Therefore, investors in ethanol stocks should stay vigilant about evolving regulations, tax incentives, and subsidies that could potentially affect the sector.

Things to consider before investing in ethanol stocks

Here are some of the key things to evaluate before investing in ethanol stocks – 

  • Research Industry Leaders: Identify ethanol companies in India that are at the forefront of ethanol production in India, as they typically boast superior infrastructure, technology, and market penetration.
  • Government Policy Analysis: Gain insights into how governmental policies, including subsidies and ethanol blending mandates, impact the industry. Ethanol Stocks aligning well with such policies may present more promising opportunities.
  • Financial Evaluation: Companies’ with robust financial statements, focusing on maintaining a healthy balance sheet, generating consistent revenue growth, and profitability can act as key positive indicators.
  • Supply Chain Reliability: Prioritise companies with a stable supply of raw materials, such as sugarcane, to mitigate the risk of production disruptions.
  • Diversification Strategy: Explore companies with diversified interests beyond ethanol, providing stability against potential market volatility in the ethanol sector.
  • Analyst Ratings and Reports: By evaluating analyst ratings on Tickertape, you can gain hindsight into experts’ perspective on the stock’s potential.
  • Historical Performance Review: While past performance doesn’t guarantee future results, understanding a stock’s historical performance can offer valuable insights.
  • Investor Sentiments Monitoring: Stay attuned to overall investor sentiment regarding the ethanol industry and specific stocks to gauge market perception and potential trends. To monitor an investor sentiment on Tickertape, you can refer to 1-day daily volume. Any change in the percentage of daily volume can offer you insight into the buying and selling behaviour of the investors.

Conclusion

India boasts a robust presence of ethanol companies, many of which rank globally among the foremost ethanol producers. The heightened demand for ethanol globally has propelled the Indian ethanol market to new heights, with projections indicating a remarkable CAGR of 9.16%. It is projected that by 2029, the Indian ethanol market is set to achieve a market value of $4.15 billion.

However, since ethanol is a by-product of sugar, running a detailed analysis of the companies before investing is essential. For this purpose. #TickertapeHaiNa! Tickertape Stock Screener offers 200+ filters, custom filters, custom universe, and more to analyse any stock thoroughly. Moreover, with Tickertape, you can identify the intrinsic value, dubbed as the true value of a stock, with the pro version.

FAQs

Which are the biggest ethanol producing companies in India?

Shree Renuka Sugars Private Limited is among the biggest ethanol making companies in india. It is based in Mumbai, Maharashtra. It comprises a distillery with a 600-litre daily capacity.

Which are the top 5 smallcap ethanol companies in india?

Based on market capitalisation, here are the list of top 5 ethanol companies in India – 
E I D-Parry (India) Ltd
Shree Renuka Sugars Ltd
Balrampur Chini Mills Ltd
Triveni Engineering and Industries Ltd
Bajaj Hindusthan Sugar Ltd

Which company supplies large amounts of ethanol in India?

Bajaj Hindustan Sugar Company, based in Mumbai, stands as India’s largest producer of sugar and ethanol, primarily focusing on ethanol supply. Established in 1931, it quickly emerged as a trailblazer in the Indian Sugar Industry.

Which are the top 5 ethanol stocks in India in 2024?

As of January 2024, these ethanol stocks have recorded double-digit growth in 2024 –
Prudential Sugar Corp Ltd
– Rajshree Sugars & Chemicals Ltd
– Kesar Enterprises Ltd
– Indian Sucrose Ltd
– Khaitan (India) Ltd

Which are the ethanol penny stocks listed in NSE?

Ethanol penny stocks list consists of – 
– Oswal Overseas Ltd
– Shree Hanuman Sugar & Industries Ltd

Both ethanol stocks are currently trading below Rs. 10.

Which ethanol shares are most bought in 2024?

Here’s the ethanol share list with highest trade volume –
Bajaj Hindusthan Sugar Ltd
– Shree Renuka Sugars Ltd
– Balrampur Chini Mills Ltd
– Vishwaraj Sugar Industries Ltd
– Rana Sugars Ltd

Harshit Singh
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