On 29th January 2025, the Cabinet Committee on Economic Affairs (CCEA)approved the decision to hike the price of ethanol from C-heavy molasses from Rs 56.58 per litre to Rs 57.97 per litre. The move will positively impact sugar companies that produce ethanol, as higher ethanol prices can boost their profit margins.
They also maintained the B-heavy molasses pricing at Rs 60.73 per litre in the meantime. Furthermore, there has been no change in the cost of ethanol made from cane juice.
The Government of India aims to raise the ethanol blending percentage in petrol and diesel to 15 percent by the end of 2025 and they have decided to uplift this ethanol blending percentage to 25 percent by the end of 2030.
Listed below are some of the sugar stocks involved in producing ethanol that may benefit from the above price hike if there related to it
EID Parry (India)
E.I.D. Parry (India) Limited is engaged in the business of sweeteners and nutraceuticals. Its business segments include Nutrient and allied business, Crop protection, Sugar, Cogeneration, Distillery, and Nutraceuticals.
With a market capitalization of Rs. 14,595 Crores, the shares of EID Parry (India) Limited were trading at Rs. 823 per equity share, up 4 percent from its previous day’s close price of Rs. 790.80.
EID Parry (India) Limited has an ethanol distillery capacity of 417 KLPD and a sugarcane crushing capacity of 40,800 TCD.
Balrampur Chini Mills
Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise producing sugar, distillery operations and cogeneration of power.
With a market capitalization of Rs. 9,934 Crores, the shares of Balrampur Chini Mills Limited were trading at Rs. 492 per equity share, up 3 percent from its previous day’s close price of Rs. 479.55.
Balrampur Chini Mills Limited has an ethanol distillery capacity of 1050 KLPD and a sugarcane crushing capacity of 80,000 TCD.
Shree Renuka Sugars
Shree Renuka Sugars Limited is engaged in the production of sugar, ethyl alcohol, and ethanol, as well as the generation and sale of power. Its segments include Sugar milling, Sugar refinery, Distillery, Co-generation, Trading, Engineering, and Others.
With a market capitalization of Rs. 8,054 Crores, the shares of Shree Renuka Sugars Limited were trading at Rs. 37.84 per equity share, up 6 percent from its previous day’s close price of Rs. 35.79
Shree Renuka Sugars Limited has an ethanol distillery capacity of 1250 KLPD and a sugarcane crushing capacity of 37,500 TCD.
Triveni Engineering and Industries
Triveni Engineering and Industries Limited is an Integrated and diversified conglomerate in sugar manufacturing, and engineering businesses, covering power transmission, water and wastewater treatment solutions, and defence sectors.
With a market capitalization of Rs. 8,734 Crores, the shares of Triveni Engineering and Industries Limited were trading at Rs. 398.90 per equity share, up 4 percent from its previous day’s close price of Rs. 385.
Triveni Engineering and Industries Limited has an ethanol distillery capacity of 860 KLPD and a sugarcane crushing capacity of 63,000 TCD.
Bajaj Hindusthan Sugar
Bajaj Hindusthan Sugar Limited is engaged in the business of manufacturing sugar, alcohol, ethanol, and the generation of power.
With a market capitalization of Rs. 3,511 Crores, the shares of Bajaj Hindusthan Sugar Limited were trading at Rs. 27.49 per equity share, up 4 percent from its previous day’s close price of Rs. 26.41.
Bajaj Hindusthan Sugar Limited has an ethanol distillery capacity of 800 KLPD and a sugarcane crushing capacity of 1,36,000 TCD.
Written by: Bharath K.S
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