5 Multibagger Sugar Stocks With Returns Up To 369 Per Cent In 1 Year

Sugar stocks will continue to be in a good spot given the government's push for ethanol blending and likewise as these are traders favourite sector, here are the stocks from the space that yielded massive gains in 1-year's time.

Triveni Engineering:

The small cap company is among the country's largest sugar manufacturers with 7 state-of-the-art FSSC 22000 certified sugar units. The company's integrated operations are designed to produce multi-grade sugar, potable alcohol, fuel-ethanol, and power from bagasse.

The company produces diverse premium quality multi-grade (large, medium, small) crystal, refined and pharmaceutical-grade sugar for use across industries. The company has a good profit growth and also maintains a healthy ROE. Further, the company's debt has been substantially reduced.

 

Sir Shadi Lal Enterprise:

This is a small cap company engaged in the manufacture of sugar and rectified spirit and extra neutral alcohol. The company also carries out the business of alcohol. The company's 52-week low/ high price has been Rs. 32.75/ 232.70 and last trades at Rs. 194.9 per share. The company has a high promoter holding as well as has an efficient Cash Conversion Cycle.

Shree Renuka Sugar:

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world as well as sugar refining entity. The company also operates integrated ethanol as well as power cogeneration capacity. Yes Securities has given a 'Buy' on the scrip for a target price of Rs. 45 given the recent consolidation breakout in the company that is likely to resume its prevailing uptrend.

Dwarikesh Sugar:

The company is seen to rise exponentially to a price of Rs. 135 as estimated by ICICI Securities. The company has been the beneficiary of higher exports owing to rising global sugar prices, sugarcane diversion towards ethanol. Also, growth in profits will enable the company to have huge Rs. 517 crore free cash flow. Furthermore, the company is on the path to become a completely debt free entity.

Dalmia Bharat Sugar:

The UP based sugar producing entity has a cane crushing capacity of 35500 TCD. It is now a fully integrated player with 120 MW of co-generation capacity and a distillery of 255 KLPD along with incineration boilers. It also has facilities for processing of raw sugar.

 The company has maintained good profit growth of 26.20% for the last 3 years.Also, it has a good cash flow.The company has a high promoter holding of 74.91%.

 

Sugar stocks	LTP as on February 8, 2022	1 year return
Sir Shadi Lal	194.9	369.00%
Triveni Engineering	285.8	294.00%
Shree Renuka Sugars	34.6	244.00%
Dwarikesh Sugar	99.4	267.00%
Dalmia Bharat Sugar	423.05	205.00%

Should you buy into sugar stocks now?

Investing in the sugar stocks will be lucrative given the fact that sugar companies also manufacture ethanol and that is being blended with petrol for environment safety to promote a greener environment. Thus sugar stocks can sweeten your portfolio both in the medium and long term. Furthermore, for most sugar companies, brokerages have been bullish and given robust price targets.

Disclaimers:

The sector as a whole looks promising but in the story we have thrown light into multibagger scrips from the space and some of the stocks in the list are also been backed by the brokerages as a 'Buy'. Nonetheless equity investing poses financial loss risk.

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