Best Biofuel Stocks in India: Biofuels are renewable energy sources obtained from living organisms. Biodiesel, Corn ethanol, and biogas from organic byproducts are the most common biofuels. Renewable energy lessens the demand for a limited amount of nonrenewable resources such as fossil fuels.
Biofuels have the ability to totally replace fossil fuels and decarbonize the transportation sector. This will assist the globe in meeting its carbon neutrality targets on time.
One of the last initiatives India took as part of its G20 presidency was the formation of a Global Biofuel Alliance.
A total of 19 countries and 12 international organizations have decided to join the alliance with India, USA, and Brazil, the founding member countries. The alliance’s goal is to develop and promote biofuels, as well as to increase global access to bioenergy.
Here are the Top Biofuel Stocks
In this article we shall see which are the best biofuel stocks in India 2023, and also look at its financials and more
Best Biofuel Stocks in India #1 – Shree Renuka Sugar
Shree Renuka Sugars is a multinational agribusiness and bio-energy company. The company is one of the world’s major sugar producers, the leading sugar factory in India, and one of the world’s top sugar refiners. The corporate office is in Mumbai (Maharashtra, India), and the head office is in Belgaum (Karnataka, India).
SRSL has six sugar mills that produce sugar, ethanol, power, and organic manures. The company has a total crushing capacity of 7.1 MTPA or 35,000 TCD and produces high-quality sugar, the majority of which is marketed to the food and beverage industries.
The capacity of the Indian distillery is 930 KLPD, and it produces fuel-grade ethanol that is marketed to oil companies as well as the chemical industry. Power plants in India produce 242 MW of power, 135 MW of which is exportable and primarily sold to open-access grids.
|CMP (Rs)||54.95||Market Cap (Cr)||11,828.02|
|EPS (TTM)||1.04||Stock P/E (TTM)||0|
|ROE (%)||0||ROCE (%)||11.74|
|Promoter Holding (%)||62.48||Dividend Yield (%)||0|
|Debt to Equity (%)||-2.81||Price to Book Value (%)||5.61|
|Net Profit Margin (%)||-2.18||Operating Profit Margin (%)||6.19|
It operates in India, Brazil, Mauritius, Dubai, and Ethiopia, and exports to Sudan, Somalia, Bahrain, China, Afghanistan, the UAE, Saudi Arabia, Malaysia, Nepal, Myanmar, Indonesia, Tanzania, Qatar, Indonesia, and Sri Lanka.
The company’s revenue grew by 40.23% from Rs. 6,432.63 Cr in FY22 to Rs. 9,020.75 Cr in FY23 and net profits increased by 42.18% from Rs. 138.54 Cr in FY22 to Rs. 196.97 Cr in FY23.
Best Biofuel Stocks in India #2 – Praj Industries
Praj Industries was founded on November 8, 1985. It is a public limited company headquartered in Pune, Maharashtra. The company is an engineering firm that provides wastewater treatment and utilisation solutions for distilleries and breweries.
BioEnergy, High Purity Solutions, Brewery Plants, Wastewater Treatment, Bioproducts, Skid Engineering and Process Solutions, and Critical Process Equipment and Systems are its business lines. The company has 1000+ references across the world and 1200+ professionals worldwide. The business presence is in 100+ countries.
|CMP (Rs)||582.7||Market Cap (Cr)||10,736|
|EPS (TTM)||14||Stock P/E (TTM)||41.74|
|ROE (%)||24.13||ROCE (%)||32.44|
|Promoter Holding (%)||32.82||Dividend Yield (%)||1.32|
|Debt to Equity (%)||0||Price to Book Value (%)||9.47|
|Net Profit Margin (%)||6.7||Operating Profit Margin (%)||8.59|
The company holds a 10% share in global bioethanol production capacity. It has 4 manufacturing units and 90+ research scientists.
The company’s revenue grew by 61.14% from Rs. 2,222.82 Cr in FY22 to Rs. 3,581.76 Cr in FY23 and net profits increased by 59.6% from Rs. 150.24 Cr in FY22 to Rs. 239.79 Cr in FY23.
Best Biofuel Stocks in India #3 – Triveni Engineering & Industries
Triveni Engineering & Industries Ltd is a sugar-producing firm. The company is involved in many different kinds of businesses, which are primarily classified as sugar and allied businesses; Engineering businesses, and others.
Sugar and related companies primarily include sugar production, cogeneration, and distilleries. The Engineering division largely consists of Power Transmission manufacturing facilities in Mysuru and Water and Waste Water Treatment operations in Noida, Uttar Pradesh.
|CMP (Rs)||387.05||Market Cap (Cr)||8,412.25|
|EPS (TTM)||81.91||Stock P/E (TTM)||4.69|
|ROE (%)||78.33||ROCE (%)||57.35|
|Promoter Holding (%)||60.98||Dividend Yield (%)||1.2|
|Debt to Equity (%)||0.34||Price to Book Value (%)||3.08|
|Net Profit Margin (%)||2.36||Operating Profit Margin (%)||10.7|
Sugar and allied businesses provide for the majority of the company’s revenue. It produced 9.5 lakh tonnes of sugar in FY23. Mysore-based plant manufactures high-speed gears and gearboxes with capacities of up to 70 MW and speeds of 70,000 rpm, as well as defence equipment and solutions for the Navy.
The company’s revenue grew by 30.9% from Rs. 4,290.94 Cr in FY22 to Rs. 5,616.83 Cr in FY23 and net profits increased by 322.54% from Rs. 424.06 Cr in FY22 to Rs. 1,791.81 Cr in FY23.
Best Biofuel Stocks in India #4 – Bajaj Hindusthan Sugars
Bajaj Hindusthan Sugar Limited (BHSL) is Asia’s No.1 and World’s No. 4 integrated sugar company. It is India’s leading sugar and ethanol manufacturing company. The company has 14 sugar plants.
The company’s total sugarcane crushing capacity is 136,000 tones crushed per day (TCD), and its alcohol distillation capacity is 800 kilolitres per day (KLD). Besides sugar, BHSL is a leading producer of ethanol, a green fuel that has the potential to change India’s rapidly increasing energy sector.
|CMP (Rs)||26.4||Market Cap (Cr)||3,422.05|
|EPS (TTM)||1.29||Stock P/E (TTM)||0|
|ROE (%)||4.03||ROCE (%)||0.91|
|Promoter Holding (%)||24.95||Dividend Yield (%)||0|
|Debt to Equity (%)||0.97||Price to Book Value (%)||0.79|
|Net Profit Margin (%)||2.13||Operating Profit Margin (%)||4.14|
The company’s revenue rose by 13.67% from Rs. 5,575.65 Cr in FY22 to Rs. 6,338.03 Cr in FY23 and the net losses declined by 49.64% from Rs. 267.54 Cr in FY22 to Rs. 134.73 Cr in FY23.
Best Biofuel Stocks in India #5 – Dhampur Sugar Mills
Dhampur Sugar Mills Ltd is a firm that processes sugarcane. Sugar, Power, Ethanol, Chemical, and Potable Spirit are among the company’s operating segments. The Sugar division includes the production and sale of sugar and its byproducts.
The Ethanol segment manufactures and sells RS, Ethanol, ENA, and Industrial alcohol. Its electricity sector includes co-generation and electricity sales. The potable Spirits section includes the production and marketing of Country liquor. Ethyl Acetate is manufactured and sold in the chemicals market. Others include the sale of gasoline and agricultural products.
|CMP (Rs)||304||Market Cap (Cr)||2,039.43|
|EPS (TTM)||24.63||Stock P/E (TTM)||12.47|
|ROE (%)||16.39||ROCE (%)||15.3|
|Promoter Holding (%)||49.08||Dividend Yield (%)||2.69|
|Debt to Equity (%)||0.7||Price to Book Value (%)||1.87|
|Net Profit Margin (%)||5.5||Operating Profit Margin (%)||12.3|
The sugar segment contributes to the majority of the company’s revenue. The Dhampur Group owns and runs two integrated sugarcane crushing units, to crush 23,500 MT of sugar per day, produce 2,500 MT of sugar per day, generate 121 MW of Renewable energy, export 55 MW of renewable energy to the grid, produce 3,50,000 litres of alcohol/fuel ethanol per day and produce 2,20,000 litres of ENA (Extra Neutral Alcohol) per day.
The company’s revenue grew by 29.19% from Rs. 1,904.05 Cr in FY22 to Rs. 2,459.76 Cr in FY23 and net profits increased by 9.34% from Rs. 144.04 Cr in FY22 to Rs. 157.5 Cr in FY23.
Written by Sheshadri N
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