Best Sugar Stocks in October 2024 – Based on 5yr CAGR

India stands as the largest consumer and the 2nd largest producer of sugar globally, with a production of ~34 million metric tons in 2023-2024. The sugar industry is vital for the livelihood of sugarcane farmers in rural regions and offers employment to around 5,00,000 workers in sugar mills. In this article, find the best sugar sector stocks in India for October 2024, picked based on their 5-yr CAGR.

Best Sugar Stocks in October 2024 – Based on 5yr CAGR

Note: The best sugar stocks list provided here is as of October 1, 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 October 2024

• 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, compared to ₹63,634.75 lakh in FY 2023. The net profit for the year ended March 31, 2024, was ₹11,037.50 lakh, up from ₹2,329.57 lakh in FY 2023.

Key metrics:

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

• Shree Renuka Sugars Ltd

Shree Renuka Sugars is one of the largest Indian sugar and green energy producers. The company operates 8 state-of-the-art sugar mills, many of which have integrated ethanol and power co-generation capability. In 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: 20.97%

• Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is amongst the largest Indian integrated sugar manufacturers. In addition to its sugar operations, the company is involved in engineering sectors, including power transmission, water and wastewater treatment solutions, and defence. In FY 2024, the company’s total income was ₹6,21,342 lakh, compared to ₹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. 

Key metrics:

• ROCE: 17.59%
• ROE: 14.20%

• Bajaj Hindusthan Sugar Ltd

Bajaj Hindusthan Sugar Limited (BHSL) is involved in the manufacturing of sugar and ethanol in India. In FY 2024, the company’s total income was ₹6,146.33 crore, compared to ₹6,360.34 crore in FY 2023. The profit for the year ended March 31, 2024, was -₹86.92 crore, compared to a loss of ₹134.74 crore in FY 2023. 

Key metrics:

• ROCE: 0.71%
• ROE: -1.93%

• E I D-Parry (India) Ltd

E.I.D. Parry (India) Limited (E.I.D. Parry) is into 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, down from ₹35,283.02 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,617.57 crore, declined from ₹1,827.74 crore in FY 2023. 

Key metrics:

• ROCE: 20.33%
• ROE: 8.67%

Sugar Demand in India

The sugar industry ranks as the 2nd largest agro-based industry in India, following cotton. India’s reputation as a significant sugar-consuming nation is driven by the growing consumption of ice cream, baked goods, confectionery, Indian sweets, and processed food and beverages, all of which heavily depend on sugar. This heightened demand for consumer products has led to total sugar consumption of ~34 million metric tons in 2023-2024. Alongside being the world’s leading sugar producer, India also holds the position of the 3rd largest sugar exporter globally.

Conclusion

There are several other best sugar industry stocks in India. Understand the company’s business model, financials and future prospects before making a decision. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.