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.
Listed below are such ethanol stocks whose market capitalization is less than Rs. 1,000 crores:
Rajshree Sugars & Chemicals Ltd
With a market capitalization of Rs. 224 crores, the shares of Rajshree Sugars & Chemicals Ltd started Wednesday’s trading session on a higher note at Rs. 69.50 compared to its previous close of Rs. 68.15. During the trading session, the shares hit a high of Rs. 71.45, gaining around 2 percent and are currently trading at Rs. 68 apiece.
Coming onto the company’s financial statements, the revenue decreased by 36 percent from Rs. 213 crores during the September quarter to Rs. 137 crores in the December quarter. In addition, the net profits showcased a transition from a net profit of Rs. 17 crores to a net loss of Rs. 21 crores during the same period.
The company has integrated biorefinery complexes in various locations, including Mundiampakkam, Gingee, and Zaheerabad, where they produce ethanol among other products like white crystal sugar and industrial alcohol.
The company’s ethanol production is part of its integrated biorefinery complexes in various locations, where it also produces white crystal sugar and industrial alcohol. Moreover, Rajshree Sugars & Chemicals has an ethanol capacity of 45 KLPD (kilolitres per day).
Kothari Sugars & Chemicals Ltd
With a market capitalization of Rs. 485 crores, the shares of Kothari Sugars & Chemicals started Wednesday’s trading session on a flatter note at Rs. 58.95 compared to its previous close of Rs. 59. During the trading session, the shares hit a high of Rs. 60.50, gaining around 1 percent and are currently trading at Rs. 58 apiece.
Coming onto the company’s financial statements, the revenue increased by 17 percent from Rs. 113.18 crores during the September quarter to Rs. 132.31 crores in the December quarter. On a contrasting note, the net profits decreased by 85 percent from Rs. 5.18 crores to Rs. 76 lakhs during the same period.
The company has produced 178.22 lakhs litres of alcohol during the financial year 2022 – 23 against 171.96 lakhs litres in the previous year and has supplied 8.93 lakh litres of Ethanol to Oil Marketing Companies during the ethanol marketing year 2021 – 22.
Furthermore, till March 2023, the company has supplied 80,000 litres to Oil Marketing Companies. Additionally, Kothari Sugars & Chemicals has an ethanol production capacity of 60 kilolitres per day (KLPD) or 60 KLPD.
Magadh Sugar & Energy Ltd
With a market capitalization of Rs. 854 crores, the shares of Magadh Sugar & Energy Ltd started Wednesday’s trading session on a higher note at Rs. 609 compared to its previous close of Rs. 603.25. During the trading session, the shares hit a high of Rs. 618, gaining around 2 percent and are currently trading at Rs. 607 apiece.
Coming onto the company’s financial statements, the revenue decreased by 24 percent from Rs. 289 crores during the September quarter to Rs. 289 crores in the December quarter. On a contrasting note, the net profits magnified by 160 percent from Rs. 15 crores to Rs. 39 crores during the same period.
Furthermore, the company’s ethanol volume sales increased by 23 percent from Rs. 53 crores during the September quarter to Rs. 65 crores in the December quarter. Moreover, the company has 3 sugar mills with a combined crushing capacity of 19,000 TCD and has 2 distillers with a total capacity of 150 KLPD.
Written By Vaibhav Patil
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