Top 5 Best Ethanol Stocks: Ethanol, a byproduct of the molasses process of making sugar, is gaining popularity in various industries such as pharmaceuticals, food and beverages, automobiles, and cosmetics. In addition to its diverse applications, ethanol is also blended with petrol, which has led to the Indian government’s initiative to increase the ethanol content in petrol to 20% by 2025. This move not only helps reduce India’s oil import dependence but also makes the petrol market more environmentally friendly by reducing carbon footprints.
Why Invest in Ethanol Stocks?
With India importing 84% of its oil requirements, the government aims to save around ₹30,000 crore in foreign currency expenses by using 20% ethanol-blended petrol. Investing in ethanol stocks has the potential to benefit from this government push towards ethanol, as well as the growing demand for environmentally friendly alternatives. According to the Ministry of Petroleum and Natural Gas, India’s ethanol industry is projected to grow from ₹9,000 crore in 2022 to ₹50,000 crore by 2025.
Top 5 Best Ethanol Stocks to Consider
Now I’m gonna share with you the Top 5 Best Ethanol Stocks that have full potential to grow in the future, you can consider these stocks for your portfolio, remember this article is just based on research and analysis before making in decision to consult your financial advisor.
#1. Dalmia Bharat Sugar and Industries
Dalmia Bharat Sugar and Industries is a company that produces ethanol along with its main product, sugar. With a market capitalization of ₹3,550 crores, the company has shown significant growth in its share price over the past year. this company also sells ethanol to Indian oil, Hindustan petroleum, and Bharat petroleum.
| Feature | Value |
| Market Cap | ₹3,550 Crore |
| 52 Week High | ₹490.05 |
| 52 Week Low | ₹310.50 |
| TTM EPS | ₹36.54 |
| P/E Ratio | 11.99 |
| ROE | 9.24% |
| Dividend Yield | 0.91% |
| 3 Year return | 235% |
| 5 Year return | 330% |
#2. Bajaj Hindusthan Sugar
Bajaj Hindustan Sugar is another prominent player in the ethanol industry. Along with its 14 sugar plants, the company has a strong presence in the ethanol market. Despite recent insolvency proceedings, the company is focused on expansion and growth in the ethanol segment.
| Feature | Value |
| Market Cap | ₹4,155 Crore |
| 52 Week High | ₹35.80 |
| 52 Week Low | ₹10.57 |
| TTM EPS | ₹-0.98 |
| P/E Ratio | -33.23 |
| 3 Year return | 615% |
| 5 Year return | 214% |
Why Bajaj Hindustan Sugar
- In March 2023, the Company acquired Phenil Sugar and Bajaj Power Venture For Rupess 800 Croes
- NCL Rejected an SBI-Initiated bankruptcy against Bajaj Hundustan
- Bajaj Put their project on hold as a result, but they are now concentrating on growth and expansion
#3. Balrampur Chini Mills LTD
Balrampur Chini Mills, an energy company with a strong foothold in the sugar industry, Balrampur Chini Mills is India’s second-largest sugar company established in 1975. The company has seen a 20% increase in revenue and aims to further expand its ethanol capacity.
| Feature | Value |
| Market Cap | ₹9,193Crore |
| 52 Week High | ₹461.95 |
| 52 Week Low | ₹349.50 |
| TTM EPS | ₹26.79 |
| P/E Ratio | 16.83 |
| ROE | 9.81% |
| Dividend Yield | 0.55% |
| 3 Year return | 197% |
| 5 Year return | 326% |
#4. Triveni Engineering and Industries
Triveni Engineering & Industries Ltd was Established in 1932, this company is also involved in sugar, ethanol, power transmission, and water management. Triveni Engineering and Industries started its journey in the ethanol industry in 2006 With a daily ethanol production capacity of 660 kilolitres, the company is expected to see significant growth in the coming years.
| Feature | Value |
| Market Cap | ₹8,069Crore |
| 52 Week High | ₹417 |
| 52 Week Low | ₹250.10 |
| TTM EPS | ₹19.84 |
| P/E Ratio | 18.59 |
| ROE | 67.22% |
| Dividend Yield | 0.88% |
| 3 Year return | 34% |
| 5 Year return | 455% |
#5. The Ugar Sugar Works Ltd
The Ugar Sugar Mills, known for its fermentation technology, the Ugar Sugar Mills started producing ethanol in 2003, and has distilleries that produce high-quality ethanol. The company’s focus on technological advancements and fermentation processes gives it an edge in the ethanol industry.
| Feature | Value |
| Market Cap | ₹1,004 Crore |
| 52 Week High | ₹135.65 |
| 52 Week Low | ₹76.75 |
| TTM EPS | ₹6.08 |
| P/E Ratio | 14.70 |
| ROE | 46.66% |
| Dividend Yield | 0.56% |
| 3 Year return | 564% |
| 5 Year return | 572% |
Conclusion
these stocks have been chosen based on 3 years and 5 years of returns, Investing in ethanol stocks can offer significant opportunities for growth, considering the Indian government’s push towards ethanol and the increasing demand for environmentally friendly alternatives. However, it’s important to carefully analyze each stock and consider your risk appetite and investment goals before making any investment decisions.
(Disclaimer: This article is written for informational purposes only and does not provide financial advice in any way. Before making any investment decision, do your research.)
