List of the Best 10 Ethanol Stocks in India

Ethanol stocks are gaining attention in India’s world of investment. These stocks are from companies that make and sell ethanol, a fuel from plants like sugarcane. India is now focusing more on renewable energy and being eco-friendly. This shift makes ethanol stocks an exciting choice for investors. 

Our guide explores ethanol producing companies in India stocks in depth. We will discuss the top companies in this field and share tips on smart investing. Whether you’re an experienced investor or just starting, this guide will help you understand and make the most of ethanol stock in India.

What Are Ethanol Stocks?

Ethanol stocks are shares in companies that work with ethanol. Ethanol is a clean fuel made primarily from plants like sugarcane and corn. These stocks include companies that grow these plants, produce ethanol, and sell it. Investing in these stocks is a way to get involved in the renewable energy field. 

This is meaningful as more people seek environmentally friendly energy options nowadays. In India, there’s a big focus on using cleaner fuels and reducing pollution. So, the ethanol industry is growing. These stocks could be a good opportunity for investors who want to support and gain from the shift to green energy.

Key Takeaways

• Ethanol stocks are investments in companies producing and distributing ethanol, a renewable biofuel.
• Investing in ethanol stocks offers growth potential, a link to the stable agricultural sector, government support, ethical investment opportunities, and early-mover advantages.
• Key factors to consider before investing in this sector include market research, company fundamentals, regulatory environment, technological advancements, and risk tolerance.
• Practical strategies for ethanol stock investors include long-term investment focus, portfolio diversification, thorough market research, monitoring government policies, and active risk management.
• Investing in ethanol stocks involves risks like market volatility, regulatory changes, and dependence on technological and market trends.

10 Best Ethanol Stocks in India

As India embraces renewable energy, ethanol has emerged as a significant sector. This section introduces the top 10 companies making waves in India’s ethanol market. We’ll provide a closer look at these companies, detailing their contributions to ethanol production and sharing key financial information like stock details, market value, and share prices.

1. Bajaj Hindusthan Sugar Ltd

• Stock Ticker: NSE: DALMIASUG
• Market Cap: 28.96B INR
• Share Price: ₹359.45
• PE Ratio: 9.48
• Dividend Yield per Annum: 1.19%

Overview

Established in 1931, Bajaj Hindusthan Sugar Ltd is India’s largest sugar producer and a key player in ethanol production. Its journey from a single sugar mill to a leading conglomerate in the renewable energy sector exemplifies its pioneering spirit and adaptability to market changes. Bajaj Hindusthan Sugar Ltd is listed on the NSE as BAJAJHIND. The company has a market cap of 36.93B INR and a share price of ₹28.90. The company’s transition into ethanol reflects its adaptability and growth in the renewable energy sector, though it currently does not list a PE ratio or dividend yield.

2. Dalmia Bharat Sugar and Industries Ltd

• Stock Ticker: NSE: DALMIASUG
• Market Cap: 28.96B INR
• Share Price: ₹359.45
• PE Ratio: 9.48
• Dividend Yield per Annum: 1.19%

Overview

Dalmia Bharat Sugar and Industries Ltd. has a rich history dating back to 1935. Its transition from a traditional sugar mill to an integrated business model incorporating ethanol production showcases the company’s innovative approach to addressing energy needs. Dalmia Bharat Sugar and Industries Ltd operates as NSE: DALMIASUG. The company has a market cap of 28.96B INR and a share price of ₹359.45. Its PE ratio of 9.48 and dividend yield of 1.19% per annum highlight its financial health and appeal to investors.

3. Dhampur Sugar Mills Ltd

• Stock Ticker: NSE: DHAMPURSUG
• Market Cap: 14.22B INR
• Share Price: ₹217.05
• PE Ratio: 10.13
• Dividend Yield per Annum: 2.30%

Overview

Since its beginning in 1933, Dhampur Sugar Mills Ltd has evolved from a sugar-focused company to a diversified entity with significant interests in ethanol. Its longevity and adaptation to the renewable energy sector mark its strategic foresight. Dhampur Sugar Mills Ltd operates under NSE: DHAMPURSUG. With a market cap of 14.22B INR and a share price of ₹217.05, the company has a PE ratio of 10.13 and offers a 2.30% dividend yield, indicating a strong position in the market.

4. Dwarikesh Sugar Industries Ltd

• Stock Ticker: NSE: DWARKESH
• Market Cap: 14.55B INR
• Share Price: ₹80.20
• PE Ratio: 13.50
• Dividend Yield per Annum: 2.59%

Overview

Founded in 1993, Dwarikesh Sugar Industries Ltd is relatively young but has quickly established itself as a significant player in both the sugar and ethanol industries. Its strategic investments in ethanol production align with global trends toward renewable energy. Dwarikesh Sugar Industries Ltd uses NSE: DWARKESH as the ticker. The company has a history in the sugar sector, and its foray into ethanol signifies its strategic growth. The company’s market cap is 14.55B INR, and its share price is ₹80.20. Its PE ratio of 13.50 and a 2.59% dividend yield suggest its potential for both growth and income for investors.

5. EID Parry (India) Ltd

• Stock Ticker: NSE: EIDPARRY
• Market Cap: 96.92B INR
• Share Price: ₹556.95
• PE Ratio: 11.31
• Dividend Yield per Annum: 1.47%

Overview

EID Parry, part of the Murugappa Group and founded in 1788, is one of the oldest business entities in India. Its foray into ethanol is a testament to its enduring vision and commitment to embracing new business opportunities in the energy sector. EID Parry (India) Ltd also known as EIDPARRY. The company has a rich sugar and allied products history due to its long existence. The company’s venture into ethanol is part of its diversification strategy. The company has a market cap of 96.92B INR, a share price of ₹556.95, a PE ratio of 11.31, and a dividend yield of 1.47%.

6. Gayatri Sugars Ltd

• Stock Ticker: BOM: 532183
• Market Cap: 1.29B INR
• Share Price: ₹20.36
• PE Ratio: 1.98
• Dividend Yield per Annum: –

Overview

Gayatri Sugars Ltd, incorporated in 1995, is a relatively new entrant in the sugar and ethanol industries. Its venture into ethanol aligns with the company’s mission to contribute to sustainable energy solutions and showcases its growth-focused approach. Gayatri Sugars Ltd, listed as BOM: 532183, although smaller in scale, has made significant strides in the ethanol sector since its inception in sugar production. The company’s market cap is 1.29B INR, with a share price of ₹20.36. Its PE ratio is 1.98, reflecting its potential as an undervalued stock.

7. Globus Spirits Ltd

• Stock Ticker: NSE: GLOBUSSPR
• Market Cap: 20.32B INR
• Share Price: ₹723.10
• PE Ratio: 15.42
• Dividend Yield per Annum: 0.85%

Overview

Established in 1992, Globus Spirits Ltd began as an alcohol beverage company and expanded into ethanol production, reflecting its dynamic business strategy and commitment to meeting the rising demand for renewable energy sources. Globus Spirits Ltd, trading on the NSE under the ticker GLOBUSSPR, has established itself as a major player in the Indian alcohol industry and ethanol production. It holds a market cap of 20.32B INR, with a share price of ₹723.10, a PE ratio of 15.42, and a dividend yield of 0.85%.

8. Piccadily Agro Industries Ltd

• Stock Ticker: BOM: 530305
• Market Cap: 28.58B INR
• Share Price: ₹300.00
• PE Ratio: 40.25
• Dividend Yield per Annum: 0.07%

Overview

Founded in 1994, Piccadily Agro Industries Ltd initially focused on agricultural products before venturing into ethanol production. This strategic move reflects the company’s adaptation to the evolving energy sector and its vision for growth. Piccadily Agro Industries Ltd is listed as BOM: 530305 in the stock market.  The company has a market cap of 28.58B INR, a share price of ₹300.00, a notably high PE ratio of 40.25, and a minimal dividend yield of 0.07%, reflecting its unique position in the market.

9. Shree Renuka Sugars Ltd

• Stock Ticker: NSE: RENUKA
• Market Cap: 86.52B INR
• Share Price: ₹41.35
• PE Ratio: –
• Dividend Yield per Annum: –

Overview

Shree Renuka Sugars Ltd, established in 1998, quickly grew to become a global agribusiness and bio-energy corporation. Its expansion into ethanol production underscores its commitment to sustainable energy and its position as a key player in this sector. Shree Renuka Sugars Ltd, with the stock ticker NSE: RENUKA, is a well-known name in the sugar industry. The company has a market cap of 86.52B INR and a share price of ₹41.35. The company does not currently disclose its PE ratio and dividend yield, making it an intriguing option for investors who focus on the company’s growth trajectory.

10. Triveni Engineering and Industries Ltd

• Stock Ticker: NSE: TRIVENI
• Market Cap: 69.87B INR
• Share Price: ₹316.75
• PE Ratio: 17.00
• Dividend Yield per Annum: 0.96%

Overview

Triveni Engineering and Industries Ltd, founded in 1932, has a diverse portfolio that includes sugar and ethanol. Its long history signifies resilience and adaptability, positioning it well in the renewable energy market. Triveni Engineering and Industries Ltd is listed in the stock market as NSE: TRIVENI. The company’s market cap is 69.87B INR, with a share price of ₹316.75. It has a PE ratio of 17.00 and offers a 0.96% dividend yield, indicating a balance between growth potential and income generation for its shareholders.

5 Advantages of Investing in Ethanol Stocks

Ethanol stocks in India are a smart choice for investors who want to keep up with the latest trends and help the environment. These stocks are not just about making money; they also support green energy. This section examines why investing in ethanol stocks can be an excellent idea for your portfolio.

Future Energy Potential

Ethanol is a renewable energy source. As the world shifts away from fossil fuels, ethanol’s role is expected to grow. Investing in ethanol stocks means investing in this future trend.

Agricultural Ties

Ethanol production is closely linked to agriculture. This connection diversifies your investment and ties it to the stable agricultural sector, offering a buffer against market volatility.

Government Support

Government initiatives like the Ethanol Blended Petrol (EBP) Programme support ethanol use in India. This can lead to better infrastructure and incentives for ethanol companies, boosting their growth.

Social Responsibility

Choosing ethanol stocks is a socially responsible investment. It supports sustainability and helps reduce carbon emissions, aligning with ethical investing principles.

Early-Mover Advantage

India’s ethanol industry is still growing. Investing now could offer early-mover advantages as the sector expands.

8 Key Considerations Before Investing in Ethanol Stocks

While promising, investing in ethanol stocks requires careful consideration to maximize potential benefits and minimize risks. Here are some crucial factors to keep in mind before diving into the ethanol market:

Market Research

You should understand the dynamics of the ethanol industry, which include trends in supply and demand, pricing, and the influence of government policies.

Company Fundamentals

You need to examine ethanol companies’ financial health and performance history. Key factors to focus on include revenue, profit margins, debt levels, and management efficiency.

Regulatory Environment

You must stay informed about government regulations and policies that impact the ethanol industry, as these factors significantly affect company performance.

Technological Advancements

You should monitor technological developments in ethanol production and processing since advances in technology can reduce costs and increase efficiency.

Diversification

You should ensure that ethanol stocks form part of a diversified investment portfolio, helping to spread risk in the volatile ethanol sector.

Sustainability and Ethical Considerations

You need to consider the sustainability practices of ethanol producing companies, as ethical and environmentally friendly operations can influence their long-term success and public perception.

Global Market Influences

You must be aware of how international energy markets and environmental policies can affect the Indian ethanol market.

Risk Tolerance and Investment Horizon

You should align your investment in ethanol stocks with your personal risk tolerance and investment timeframe, considering the potential volatility of these stocks.

5 Strategies for Investing in Ethanol Stocks

Investing in ethanol stocks can be rewarding but requires strategic planning and informed decision-making. Here are 5 effective strategies to consider when investing in this sector:

Long-Term Investment

Investors often benefit from viewing ethanol stocks as a long-term commitment. The renewable energy sector, including ethanol, has a promising growth trajectory despite potential short-term fluctuations.

Diversified Portfolio Inclusion

Adding ethanol stocks to a varied investment portfolio can balance the risks associated with the sector’s volatility, offering a more stable investment experience.

Research and Analysis

A deep dive into the ethanol market and its companies allows investors to make well-informed decisions. This involves understanding market trends, technological advancements, and the financial stability of various companies.

Monitoring Government Policies

Staying updated with government policies affecting renewable energy and ethanol production helps investors anticipate changes that could impact company performance in this sector.

Active Risk Management

Setting clear investment goals and understanding personal risk tolerance helps investors navigate the ethanol stock market effectively. Adjusting strategies in response to market changes is a part of this proactive approach.

Conclusion

In conclusion, the ethanol stock market in India presents a blend of opportunity and challenge. With the global shift towards renewable energy and India’s increasing focus on sustainable practices, ethanol stocks stand out as a significant investment opportunity. They offer potential for growth, alignment with environmental goals, and a chance to be part of the burgeoning renewable energy sector. However, like any investment, they come with risks that need careful consideration. 

Investors should approach ethanol stocks with a balanced strategy, considering long-term potential, market research, diversification, and active risk management. Staying informed about industry trends and government policies is also crucial for success in this sector. With the right approach, investing in ethanol stocks can be a rewarding part of an investor’s portfolio, contributing to financial returns and a more sustainable future.

FAQs

Related Articles:

• Averaging in the Stock Market: Long-Term Value
• 10 Best AI Stock Trading Bot: The Future of Investing
• 10 Stock Market Scams: Tips to Secure Your Investments
• How to Become a Professional Trader in 2024

Read more: Stocks