Petrol in India is currently blended with ethanol in a 90:10 ratio (with petrol being 90% and ethanol being 10%). One of the many reasons for the introduction of such blended fuel is to reduce the tailpipe emissions from petrol vehicles, which would lead to significantly lower carbon emissions.
Due to this mandate of blending ethanol with petrol, the demand for ethanol has skyrocketed in recent years. In addition to this, the government of India is now taking steps to increase the ratio of the petrol-ethanol blend from 90:10 to 90:20. The move, when it comes to fruition, is likely to boost the already high demand for ethanol to astronomical levels.
This makes it the perfect time to invest in ethanol stocks. That said, in India alone, several entities are involved in producing ethanol in large quantities. This includes sugar manufacturers and producers of alcoholic spirits. So how, then, do you decide which of the ethanol stocks to invest in?
Here’s where this article comes in. To help give you some clarity, we’ve come up with a list of the best ethanol stocks in India that you can consider investing in. Continue reading to get to know more.
Here’s a brief overview of some of the top ethanol stocks in India, including their current stock prices.
One of the oldest companies in India, E.I.D. Parry is involved in the business of manufacturing sugar and other nutraceuticals. In addition, one of the subsidiaries of the company, Coromandel International Limited, produces pesticides, fertilizers, and other bioproducts.
With over 225 years in the business, E.I.D. Parry is perfectly suited to take advantage of the expected ethanol boom. If the entity becomes a major contributor to the production of ethanol, the stock prices are likely to witness a multi-fold increase in the future. As of February 15, 2023, however, the stock price of E.I.D. Parry was Rs. 522.
Headquartered in New Delhi, Globus Spirits is one of the many producers of alcohol in India. Since its incorporation in the year 1993, the entity has grown by leaps and bounds. With a stellar product portfolio that includes different kinds of consumer-grade liquor for both the value and the premium segments and distillery products meant for industries, Globus Spirits are well-poised to leverage the purported increase in demand for ethanol.
Some of the industrial-grade alcohol manufactured by the entity includes grain-neutral alcohol, denatured spirit, bioethanol, and fusel oil, among others. In addition to alcohol, the company also produces sanitizers, carbon dioxide, and animal feed supplements. As of February 15, 2023, the stock price of Globus Spirits was Rs. 742.
Another one of the best ethanol stocks in India is Shree Renuka Sugars. In the ethanol market, the entity commands a high market share of about 20%, making it the perfect investment choice against the backdrop of an increase in the ethanol percentage in blended fuel.
In addition to ethanol and sugar production, Shree Renuka Sugars also leads in the production of electricity from ‘bagasse’, which is a by-product of sugarcane. The bio-energy produced is sold to various state power corporations in India. As of February 15, 2023, the stock price of Shree Renuka Sugars was Rs. 47, with the potential for a massive upside in the future.
A major conglomerate in India with a diversified portfolio of businesses, Triveni Engineering & Industries Limited is one of the many ethanol producers in the country. The company has over 7 cutting-edge sugar manufacturing units that are designed to produce multi-grade sugar, ethanol, potable alcohol, and electricity from ‘bagasse.’
The company’s products are used in multiple industries, which include food & beverages, FMCG, confectionery, and pharmaceuticals. The stock price of Triveni Engineering & Industries Limited as of February 15, 2023, was Rs. 281.
Dhampur Sugar Mills is one of the top ethanol stocks that you can consider investing in. With multiple integrated facilities for sugarcane processing, the entity is involved in the production and sale of sugar, its by-products, and chemicals, including ethanol.
With almost 15% of the market share in the ethanol and chemicals business and a total production capacity of 650 KLPD (Kilolitres per day), Dhampur Sugar Mills is likely to become a major player in the future concerning ethanol production. The stock price of Dhampur Sugar Mills, as of February 15, 2023, stands at Rs. 216.55.
The above-mentioned entities are just a few among the many ethanol stocks in India. Other major players include Bajaj Hindusthan Sugar, Dwarikesh Sugar, Dalmia Bharat Sugar, and Balrampur Chini, among others. With the future for ethanol bright, investing in these stocks today can lead to significant wealth creation a few years down the line.
That said, before you proceed to invest in any ethanol stocks, make sure to first open a Demat account and a trading account. Then, you can get in touch with Motilal Oswal to get a 2-in-1 trading and demat account rolling in no time. The entire application process is online and takes only a few minutes to complete. So, what’re you waiting for? Visit the website of Motilal Oswal today and begin your investment journey by investing in ethanol stocks, upcoming IPOs, and a whole lot of other securities.