Best Ethanol Stocks with High FII Holdings
Best Ethanol Stocks with High FII Holdings: Unravel the sweetness hidden in the ethanol sector. Here are the top 5 stocks operating in the ethanol industry held by foreign institutional investors (FIIs) and analyzed strategically. In this article, we analyze the best ethanol stocks with high FII holdings and understand more about the company, financials, and more.
Best Ethanol Stocks with High FII Holdings
#1 Ethanol Stock with High FII Holdings: Ponni Sugars (Erode)
Pony Sugar (Erode) is one of the important companies in the sugar sector. Erode is a company located in Tamil Nadu, India and is home to a sugar factory. Ponni Sugar Ltd can crush 3,500 tonnes of sugarcane and generate 19 MW of power per day. Ponni Sugar Ltd derives 71% of its revenue from sugar and by-products business and 12% from power generation.
Another key factor about Ponni Sugar (Erode) Ltd is that the company has absolutely no debt. Ponni Sugars Ltd’s operating revenue shows an upward trend, increasing from $288 million in fiscal 2022 to $435 million in fiscal 2023. Year-on-year growth (YOY) is 51%.
The company’s net profit increased by 31.03% from 29 Crores in FY 2022 to 38 Crores in FY 2023. The company’s three-year average return on equity (ROE) is 8.90%. Return on Invested Capital (ROCE) is 10.43%.
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Ponni Sugar Ltd holds the highest stake with 22.85%. Foreign Institutional Investment (FII) In the entire sugar sector. The company’s promoters hold 42.36% as of December 2023 quarter.
Ethanol Stock with High FII #2: Balrampur Chini Mills
Founded in 1975, Balrampur Chinni Mills It is one of the largest sugar manufacturing companies in India. It is one of the first sugar companies in Korea to diversify its business from sugar to distilleries and combined heat and power generation.
Balrampur Chini Mills manufactures a wide range of by-products ranging from molasses, alcohol, ethanol, sugarcane to power generation. The company has a sugarcane crushing capacity of 80,000 tonnes per day, a distillery capacity of 1050 KL per day and a salable cogeneration capacity of 175.7 megawatts.
Balrampur Chini Mills Ltd’s operating revenue declined from $484.6 billion in fiscal 2022 to $466.6 billion in fiscal 2023. This is a 3.72% decrease on a year-on-year (YOY) basis. The company’s net income decreased 39% from $465 million in fiscal 2022 to $281 million in fiscal 2023.
Balrampur Chini Ltd’s return on equity stood at 9.8%. Return on Capital Employed (ROCE) is 12.55% for fiscal 2023. Foreign institutional investors (FIIs) held 10.49% stake in the company as of December 2023 quarter. The promoters of Balrampur Chini Mills Ltd hold 42.89%.
#3 Ethanol Stock with High FII Holdings: EID Parry (India) Ltd
EID parry It is one of the major key players in the sugar and ethanol sector with farm input operations. The company was also established through a subsidiary in the Bio Pesticides division handled by Coromandel International Limited.
This business has enabled them to develop and offer Azadirachtin, a unique neem extract that has good demand in the market. EID is Health functional food A company can enter the growth phase with a solid foundation in the market.
EIB Parry currently has the capacity to crush 40,300 tonnes of sugarcane per day across its six sugar mills, which can generate 140 MW of electricity.
EID Parry uses well-structured strategies to keep its business efficient and profitable. Some of these include increasing sugarcane volumes and controlling fixed costs.
According to the company’s income statement, the company’s operating revenue increased 49.84% annually from $2352.1 billion in fiscal 2022 to $3524.4 billion in fiscal 2023. The company’s net income increased 16.13% to $182.8 billion from $157.4 billion in fiscal 2022.
The three-year average return on equity (ROE) is 29.49%, which appears to be an impressive level for investors. Considering the three-year average, ROCE (Return on Invested Capital) is 34.11%. ROCE is higher than ROE mainly because the company has less debt.
The company has 8.71% foreign institutional ownership, which can be considered a significant foreign shareholding. Promoters of EID Parry Ltd held 42.24% as of December 2023 quarter.
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#4 Ethanol Stock with High FII Holdings: Dhampur Sugar Mills
Dhampur Sugar Factory It is one of the major leading companies operating an integrated sugarcane processing business. By managing the company with proper planning and execution, we were able to expand our business and increase our portfolio.
The company now operates beyond sugar into renewable power, ethanol, alcohol and other alcohol-based chemicals. The company derives a significant portion of its revenue from sugar, which accounts for 57% of revenue. The other two contributors are drinking alcohol and ethanol, accounting for 17% and 15% respectively.
The income statement shows operating revenues growing 29.19% year-on-year (YOY) from $190.4 billion in FY 2022 to $246 billion in FY 2023. The company’s net income increased from $14.4 billion in fiscal 2022 to $15.8 billion in fiscal 2023, growing 9.72% annually.
The three-year average return on equity was 14.61%. The three-year average return on invested capital (ROCE) is 12.28%. Foreign institutional investors (FIIs) hold 6.21% as of December 2023 quarter, which is 2% higher than March 2023. The promoters of Dhampur Sugar Mills Ltd hold 49.09% stake, which appears to be consistent over the last five years.
Ethanol Stock with High FII Stakes #5: Triveni Engineering and Industries
Triveni Engineering and Industry It is well known for integrated sugar, ethanol and engineering. Triveni Engineering and Industries Ltd is a well-placed and strategically placed Uttar Pradesh based company. The area is rich in sugar cane production.
The company primarily operates in three important segments which include sugar, alcohol and water solutions. The company, whose main business is sugar, has seven sugar manufacturing facilities and grows sugarcane on 210,000 hectares of land. The company can crush 61,000 tonnes of sugarcane every day.
Domestic Triveni Engineering and Industries Ltd ranks among the top three in sugar manufacturing. The company is also the second-leading ethanol supplier in the country.
Triveni Engineering and Industries Ltd’s operating revenue increased from $429.1 billion in fiscal 2022 to $561.7 billion in fiscal 2023. This represents a 30.90% increase on a year-on-year (YOY) basis. The company’s net income surged 322.64% from $424 million in fiscal 2022 to $1.792 billion in fiscal 2023.
The three-year average return on equity was 22.70%. that much return on capital employed(ROCE) is a three-year average of 18.73%. Foreign institutional investors (FIIs) held 4.42% stake in the company as of December 2023 quarter. The promoters of Triveni Engineering and Industries Ltd hold 60.98%.
List of other ethanol stocks with high FII:
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conclusion
That concludes our article on 5 Best Ethanol Stocks with High FII. To give you a brief overview, we have learned about five stocks that account for a significant portion of the holdings of FIIs operating in the sugar industry.
This article outlined the company’s overview, operations, fundamentals, and key indicators. Please leave your thoughts in the comments section below.
Written by Nishanth P
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