To reduce dependency on foreign funds, the Indian government is on the path of mixing 20 percent ethanol into automobile fuel. As a result, the Indian ethanol sector has seen tremendous success in recent months, surpassing the 10% ethanol blending rate five months ahead of schedule. However, in order to meet the government’s blending target, greater ethanol production capacity is required.
Here are three Ethanol stocks under Rs 50
KM Sugar Mills Ltd
On Monday, shares of KM Sugar Mills Closed at Rs 29.30, up 0.86 percent from the previous close price, with a market value of Rs 269 crores.
KM Sugar Mills operational revenue has increased by 84 percent year on year, from Rs 136 crore in Q1FY23 to Rs 251 crore in Q1FY24. During the same period, net profit climbed by 300 percent, from Rs 3 crore to Rs 12 crore.
The company has increased Ethanol production capacity from 45 KLPD to 50 KLPD in 2020. KM Sugar Mills has a sugar plant with an installed capacity of 9,500 TCD, and a cogeneration plant of 25MW. K M Sugar Mills Limited manufactures and trades sugar, ethanol & its related products, and power.
Kothari Sugars and Chemicals Ltd
Kothari Sugars and Chemicals closed at Rs 48.90 on Monday, up 4.26 percent from the previous close price, with a market capitalization of Rs 405 crores.
During the fiscal year 2022-23, the company’s total ethanol production was 893 KL. Kothari Sugars and Chemicals revenue has increased year on year, from Rs 157 crore in Q1FY23 to Rs 162 crore in Q1FY24. During the same period, net profit has decreased from 22 to 17 crore.
Kothari Sugars & Chemicals Ltd manufactures sugar, electricity cogenerations, molasses-based industrial alcohol, and bio-compost from press mud and distillery effluents.
Rana Sugars Ltd
Rana Sugars Ltd shares closed at Rs 23.80 on Monday, down 0.83 percent from the previous close price, with a market capitalization of Rs 365 crores.
The company has an Ethanol production capacity of 60 KLPD as of 2023. Rana Sugar’s revenue has increased by 17 percent year on year, from Rs 427 crore in Q1FY23 to Rs 499 crore in Q1FY24. During the same period, net profit has remained the same at Rs 15 crore.
Rana Sugars operates in Punjab and Uttar Pradesh and is primarily engaged in the manufacturing of sugar, ethanol, and co-generation of power.
Written by Omkar Chitnis
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