10 Best Sugar Stocks in India 2022

If you are an indian, you are bound to know about the love for sugary stuff we have in this country. With per capita consumption of sugar of approximately 10 spoons per day, an average Indian eats almost 18 kg of sugar per year. The consumption volume of sugar in 2021 amounted to 28.5 million metric tons in India, an increase from the previous year. Sugar, which comes from sugarcane is an important cash or profit crop across the country. Furthermore, it brought in higher revenues compared to wheat and paddy according to research.

 Interested in buying sugar stocks? You’ve come to the right place: Here are 10 sugar stocks we think would be the best buys among the industry.Listed below is a mix bag of large cap and small cap funds, Investors may choose accordingly.

1. Dhampur Sugar mills

Founded in 1933, DSM is one of the leading and oldest integrated sugarcane processing companies in the country. They have a strong financial base with positive results to show.

Key plus points

• Improved cash inflow from core businesses
• Better cash generated from operations in last 2 years
• Increase In institutional shareholding
• Growth in profit margin and net profit

Negatives

• Weak performance with respect to stock price
• Existence of stock pledges by promoters
• Stock is currently at divest zone in the market

2. Ponni Sugars

With a capital size of 8.59 crores, Ponni Sugars is an industrial company based out of erode formed to produce sugar and its by-products. It was incorporated in the year 1996..

Plus points

• Fully financed by equity
• Promoters pledges do not exist
• The TTM has grown formidably

Negatives

• Decrease in shareholding of directors
• Share price showing signs of downtrend

3. EID Parry

East India Distilleries Parry Limited is an Indian public company headquartered in Chennai, Tamil Nadu . They have a paid up share capital of 17.7 crores and were incorporated in the year 1975. With the vast experience they possess over the decades, they also boast quality and customer satisfaction.

Plus points

• Largest sugar producers in south india and number 5 in india
• bio-pesticides and nutraceuticals are also dealt with by them
• The promoters of the company hold a 74.91% stake.
• Have a relatively low debt-equity ratio of 0.43

Negatives

• Reducing net profit with fall in margins
• Promoter have divested some portions of holdings

4. Dalmia Sugar

A company with a high and rapid growth span, Dalmia bharat sugar and industries limited commenced business with 2 greenfield plants at jawaharpur. They hold a technological leadership position in the market.

Plus points

• Good profit growth of 26.20% in the last 3 years.
• Good cash flows to support WC requirements
• promoter holds 74.91%.of the capital

Negatives

• Index states it to be oversold
• Price declined lower than short mid and long term averages
• Declining Revenue and profits.

5. Mawana Sugars

Mawana Sugars Ltd holds a paid up capital of 42.4 crores and is indulged in the business of sugar and allied chemicals. They hold their manufacturing units in the western region of uttar pradesh. They are also active in the edible oils market.

Plus points

• Has a very strong financial base
• Improved cash inflow from core businesses
• Increased holdings by institutional investors

Negatives

• High cost of debt when compared to liquid assets
• Recent trends in stock price have not looked favourable

6. Bajaj Hindustan sugar

Known to many as the country’s top sugar producer, Bajaj hindusthan sugar limited was founded by jamnalal bajaj in the year 1931 which makes it one of the oldest sugar producers in asia. It is well renowned due to its experience and years of quality.

Plus points

• The heavy effect of experience and Bajaj Group leading presence with diversified interests in sugar results in the massive success of bajaj hindusthan sugar.
• Bajaj Hindusthan Sugar Ltd. has dealers around the country and a smooth running logistics system that helps in movement of goods.
• Increased holdings by institutional investors

Negatives

• Cash flow from operating activities have reduced
• Low Piotroski Score which means the company’s financials are not that sound fundamentally
• Poor cash generated from core business – Declining Cash Flow from Operations.

7. Shree Renuka sugars

Shree Renuka Sugars Ltd. is a raw sugar producing company and is also inda’s largest sugar refiner, it is based out of mumbai, incorporated in the year 1995 maharashtra and has a share capital of 212 crores.

Plus points

• Increasing profits every quarter
• Consistent performer in terms of returns
• Mutual funds have increased their percentages
• Promoters pledges non existent

Negatives

• Revenue and Profit has taken a hit
• Low financial soundness.

8. Triveni Engineering & Industries Ltd

Triveni Engineering is one of the largest sugar producers of the country. They stand out due to their technological advancements and hold an upper hand in the market due to that. Their production houses are located in uttar pradesh.

Plus Points

• Company with high TTM EPS Growth
• Good cash inflow from operating activity
• Earnings per share has increased

Negatives

• Mutual funds decreased their shareholding last quarter
• Lost value in terms of stock price by 20%
• Stock is in the divest zone of investment in the market.

9. Ugar sugar works Ltd

Ugar sugar works is a part of the Shirgaokar group with a share capital of 11.2 crores. They have a strong industrial base backed by one of the largest power plant of its type in the country.

Plus points

• Increasing Revenue trends are to be seen
• Sound quarterly results
• Increase In institutional shareholding

Negatives

• Promoter decreasing their shareholding
• Declining Net Cash Flow : Companies not able to generate net cash
• Weak performer : Stock lost more than 20% in 1 month

10. Rana Sugars

Founded in 1992 by collaboration with Punjab AgroCorporation, Rana sugars is engaged in manufacturing sugar and other allied products. They are also engulfed in producing alcohol and other chemicals.

Plus points

• Low debt when compared to capital
• Consistent performance in terms of return
• Book Value per share increased every quarter

Negatives

• Declining profits shown in trend analysis
• Net profit declining
• Is in the bear reversal stage of investment strategy.