Sugar is one of the most essential commodities, and in a country as diverse as India, there is a festival or a function almost every day. And in these functions, one of the items on the menu is the dessert. No Lunch or dinner is complete without it. This is the reason why India is the largest consumer of sugar worldwide.
Apart from being the largest consumer, it is also among the top manufacturers of sugar as well. Uttar Pradesh and Maharashtra are the states responsible for producing more than 50% of the sugar. As the taste of sugar, the sugar stocks are also expected to rise. In this blog, we have provided you with the sugar stocks in India in which you can invest in 2023.
The sugar industry in India is the second-largest agro-based industry in the country. It employs over 50 million farmers; more than 6 lakh workers are employed in the mills. Sugar can be produced in some specific weather conditions. Thus, it is produced in Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Gujarat, etc.
Among these states, Maharashtra is considered the largest sugar producer. In India, 80% of the sugar is prepared from sugarcane extract, while only 20% comes from sugar beet.
Before investing in any of the sugar stocks in India, a few factors must be considered. Some of them are:
Here are the top 4 selected sugar stocks which have the potential to make your investment worthy this year:
| Market Capitalisation | ₹ 9,440 Cr. |
| Sales Growth | 58.9% |
| Face Value | ₹ 1 |
| Promoter Holding | 62.5% |
| 52 Week High/ Low | ₹ 68.8 / ₹ 38.9 |
| CMP (As of 10th May 2023) | ₹ 44.1 |
| Target | ₹ 66.15 |
| SL | ₹ 33.07 |
| Time Horizon | 1 Year |
Shree Renuka Sugars is a global agribusiness and bioenergy company and one of the largest sugar producers. It was established in 1995, and in 1998 it acquired Nizam Sugars in Andhra Pradesh. Renuka Sugars is engaged in the business of manufacturing Sugar, Refining sugar, Ethanol, Sugar Trading and co-generation.
The company has its operations in different segments.
The first is the Sugar segment which produces white sugar, bagasse, and molasses.
The second is the Ethanol Segment, in which the company manufactures ethanol blended with petrol.
The third is the Power segment the company produces from bagasse for consumption and selling to the state grid.
The company’s corporate office is in Mumbai, Maharashtra, and its Head Office is in Belgaum, Karnataka. It has seven mills in India and two port-based sugar refineries.
The graph below shows the price of Renuka Sugar stock for the past year. We have set our target for this sugar stock at Rs 66.6 with the Entry point at Rs 44.55
| Market Capitalisation | ₹ 270 Cr. |
| Sales Growth | 90.0% |
| Face Value | ₹ 10 |
| Promoter Holding | 59.8% |
| 52 Week High/ Low | ₹ 34.6 / ₹ 13.7 |
| CMP (As of 10th May 2023) | ₹ 22.8 |
| Target | ₹ 34.2 |
| SL | ₹ 17.1 |
| Time Horizon | 1 Year |
The company was incorporated in 1961, and its founder was Dr N. Mahalingam. It started producing sugar in the year 1964. The company currently has three sugar plants in Sakhtinagar, Shivganga, and Modakurichi in Tamil Nadu. Apart from producing sugar, the company also produces -
Industrial alcohol, which is produced from molasses,
Cogeneration of power using bagasse as its primary fuel,
Soya products like refined soya bean oil, soya chunks, etc. and
Bio compost, which is an organic fertiliser and soil improver.
All the products are majorly sold in India, but the company also exports to countries like Malaysia, Vietnam, etc.
The graph below shows the price of Sakthi Sugar stock for the past year. Our target for this stock is Rs 34.2, with an Entry point at Rs 23.3
| Market Capitalisation | ₹ 1,757 Cr. |
| Sales Growth | 6.53% |
| Face Value | ₹ 1 |
| Promoter Holding | 42.1% |
| 52 Week High/ Low | ₹ 122 / ₹ 75.0 |
| CMP (As of 10th May 2023) | ₹ 93.3 |
| Target | ₹ 139.9 |
| SL | ₹ 69.97 |
| Time Horizon | 1 Year |
Dwarikesh was incorporated as Dwarka Sugar Limited in 1993, and the name was changed to Dwarikesh Sugar Industries in 1994. The company is engaged in the manufacturing of sugar, power, distillery, and hand sanitizer.
Dwarikesh Sugar has three manufacturing units in Uttar Pradesh, two are in Bijnor (Dwarikesh Nagar and Dwarikesh Puram), and one is in Bareilly (Dwarikesh Dham). Mr Gautam R Morarka promotes the company, which is headquartered in Mumbai.
The graph below shows the price of Dwarikesh Sugar stock for the past year. We have set our target for this stock at Rs 139.9 with an Entry point of Rs 92.60
| Market Capitalisation | ₹ 1,678 Cr. |
| Sales Growth | -6.18% |
| Face Value | ₹ 10 |
| Promoter Holding | 49.1% |
| 52 Week High/ Low | ₹ 463 / ₹ 196 |
| CMP (As of 10th May 2023) | ₹ 253 |
| Target | ₹ 379.5 |
| SL | ₹ 189.75 |
| Time Horizon | 1 Year |
Dhampur Sugar was established in 1933 and operates in Dhampur in Uttar Pradesh. Lala Ram Narain was the founder of Dhampur Group. The company is involved in the manufacturing of sugar, chemicals, ethanol, power, portable spirits, etc.
They have two manufacturing units which are located in Dhampur and Rajpura. They also diversified their bio-organic business, headquartered in New Delhi.
The graph below shows the price of Dhampur Sugar stock for the past year. Our target for this stock is Rs 379.5 with an Entry point of Rs 255.7
Above, we have given some of the best sugar stocks in India to invest in this year. The sugar industry is very volatile as growing sugarcane requires lots of water, so the farmers depend on monsoons. But despite this volatility in sugar, this industry is one of the prestigious agro-based industries, and the government is also focusing on manufacturing and blending ethanol.
We believe that the sugar stocks in India have a bright future. Before investing in any of these stocks, the investor must do his own research, as markets are highly volatile and uncertain.
To buy any stocks, you need to have a Demat account; if you still need to open your Demat account, contact us at Lakshmishree Investment. Apart from trading in the share market, you can invest in Mutual Funds. To know more about Mutual Funds, check lumpsum investment in mutual fund.
The main disadvantage of the sugar sector is that it is heavily dependent on the monsoon season, and with the El Nino effect in India, sugar production has decreased in the past year.
As sugar production declined, to ensure that the price of sugar does not hike in the country, the Central Government of India decided to restrict the export of sugar until 30th October 2023.
The central government of India regulates the sale, delivery and distribution of sugar under the Essential Commodities Act 1955.
India is the world’s biggest consumer of sugar, and the consumption is expected to rise in the future as the population of India is also increasing. This works in favour of the sugar stocks in India.
Coca-Cola is the world’s biggest sugar buyer, controlling nearly 25% of the global soft drink market. Their portfolio includes brands like Fanta, Sprite, Minute Maid, etc.
Brazil is the largest exporter of sugar in the world, while India is the largest producer of it. Along with being the largest producer, it is also the largest consumer as well, which is the sugar stocks are expected to increase in India.
