Ethanol stocks in India have been gaining popularity due to the country’s increasing focus on renewable energy sources and reduced dependency on fossil fuels. The ethanol sector in India has been growing steadily, with the production and use of ethanol increasing over the years.
Investing in ethanol stocks in India presents potential benefits, such as government backing for boosting ethanol blending in automotive fuels, acting as a safeguard against fluctuations in the oil market, and the rising viability of exports as a market for Indian ethanol producers.
Domestic Institutional Investors (DIIs) are institutional investors that invest in the financial instruments and securities of a country where they reside. DIIs include organizations such as banks, insurance companies, mutual fund houses, and local pension and provident funds.
Listed below are such ethanol stocks in which DIIs have increased their stake during the March quarter:
Triveni Engineering and Industries Ltd
With a market capitalization of Rs. 7,992 crores, the shares of Triveni Engineering and Industries Ltd started Friday’s trading session on a higher note at Rs. 355.10 compared to its previous close of Rs. 350.10. During the trading session, the shares hit a high of Rs. 366.70, gaining around 5 percent and closed the day at Rs. 365.10 apiece.
Looking at the company’s financial statements, the revenue decreased by 7 percent from Rs. 1,409 crores during the September quarter to Rs. 1,311 crores in the December quarter. On the other hand, the net profits magnified by 373 percent from Rs. 29 crores to Rs. 137 crores during the same timeframe.
Domestic Institutional Investors have increased their stake by 0.14 percent from 8.46 percent during the December quarter to 8.60 percent in the March quarter. According to the latest shareholding pattern, Promoters have a 60.98 percent stake in the company, while FIIs hold 4.91 percent of the company’s shares during the same period.
Triveni Engineering and Industries Ltd has a distillery capacity of 660 KLD (Kilo Liters per Day). Further, the company aims to increase its distillery capacity from the current 22 crore litres per annum to 32 crore litres per annum by FY25 and to utilize B-heavy, grain and sugarcane juice route to produce ethanol.
Zuari Industries Ltd
With a market capitalization of Rs. 970 crores, the shares of Zuari Industries started Friday’s trading session on a flatter note at Rs. 322.30 compared to its previous close of Rs. 322.25. During the trading session, the shares hit a high of Rs. 327, gaining around 1 percent and closed the day at Rs. 325 apiece.
Looking at the company’s financial statements, the revenue decreased by 57 percent from Rs. 269 crores during the September quarter to Rs. 116 crores in the December quarter. On the other hand, due increase in exceptional items the net profits showcased a transition from a net loss of Rs. 33 crores to a net profit of Rs. 728 crores during the same timeframe.
Domestic Institutional Investors have increased their stake by 0.25 percent from 0.01 percent during the December quarter to 0.25 percent in the March quarter. According to the latest shareholding pattern, Promoters have a 56.81 percent stake in the company, while FIIs hold 1.55 percent of the company’s shares during the same period.
The company also increased its distillery capacity from 100 KLPD to 125 KLPD in FY23 and is expected to produce ethanol directly from the syrup in the current year
EID Parry (India) Ltd
With a market capitalization of Rs. 11,307 crores, the shares of EID Parry started Friday’s trading session on a higher note at Rs. 635 compared to its previous close of Rs. 631.30. During the trading session, the shares hit a high of Rs. 640, gaining around 2 percent and closed the day at Rs. 636 apiece.
Looking at the company’s financial statements, the revenue decreased by 14 percent from Rs. 9,059 crores during the September quarter to Rs. 7,770 crores in the December quarter. On the other hand, the net profits declined by 72 percent from Rs. 782 crores to Rs. 217 crores during the same period.
Domestic Institutional Investors (DIIs) boosted their stake by 6.96 percent, rising from 4.92 percent in the December quarter to 11.88 percent in the March quarter. Notably, SBI Mutual Funds bought a fresh stake of 5.19 percent during the quarter. According to the latest shareholding pattern, Promoters have a 42.24 percent stake in the company, while FIIs hold 8.85 percent of the company’s shares during the same period.
EID Parry (India) Ltd currently has an ethanol production capacity of 4,177 KLPD (kilo-litres per day) across its five distilleries. The company has been expanding its ethanol capacity in recent years to capitalize on the growing demand for ethanol blending with petrol in India.
Written By Vaibhav Patil
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