Best Sugar Penny Stocks Invest in India 2025

If you’re looking to gain exposure to the sugar industry in India, investing in sugar penny stocks can be an intriguing option. These low-priced stocks often come with high growth potential but they also carry significant risk. Investors generally get confused about what factors they should consider before investing in penny stocks.

In this blog, we will give you an overview of the best sugar penny stocks in India, along with the factors to consider before investing in them.

What are Sugar Penny Stocks?

Sugar penny stocks are stocks of companies primarily engaged in producing and distributing sugar, sweeteners and other related products. They are known as penny stocks because their share prices are generally below a hundred rupees. They also sell ethanol as a by-product of sugar processing. These stocks carry high risk and are preferred by the investor who wishes to take high risk for high returns. Sugar production contributes a significant portion to the country’s GDP. 

S.No.	List of Sugar Penny Stocks
1	Dwarikesh Sugar Industries Limited
2	Shree Renuka Sugars Limited
3	Bajaj Hindusthan Sugar Limited
4	Ugar Sugar Works Limited
5	The Andhra Sugars Limited
6	Rajshree Sugars & Chemicals Limited

Market Information of Sugar Penny Stocks

Company	Current Market Price (in INR)	Market Capitalisation (in INR crores)	52-Week High (in INR)	52-Week Low (in INR)
Shree Renuka Sugars Limited	32.9	7,009	56.5	24.7
Bajaj Hindusthan Sugar Limited	28	3,573	46.1	16.5
The Andhra Sugars Limited	82.9	1,123	127	64.9
Dwarikesh Sugar Industries Limited	48.2	894	80.3	33
Ugar Sugar Works Limited	49.5	557	93.2	39.1
Rajshree Sugars & Chemicals Limited	47.2	157	84	32.7

Best Sugar Penny Stocks – An Overview

An overview of the best sugar penny stocks is given below:

1. Shree Renuka Sugars Limited

In 1995, Narendra Murkumbi and his mother, Vidya Murkumbi, founded Shree Renuka Sugars Limited. The manufacturers refine sugar and also engage in the production of ethanol and power generation. The company is also engaged in sugar, coal, and molasses trading. Owns and distributes a popular sugar brand known as Madhur. In 2006, the company signed an MoU with a Brazilian sugar company and emerged as the largest sugar exporter from India. It has its headquarters in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-33.53%	-30.17%	262.20%

2. Bajaj Hindusthan Sugar Limited

Bajaj Hindusthan Sugar Limited was founded by a freedom fighter turned businessman named Shri Jamnalal Bajaj on 24 November 1931. The company opened its first plant at Gola Gokaran Nath in Lakhimpur Kheri. Initially, the company’s cane crushing capacity was 400 tonnes per day; later it was increased to 1,36,000 tonnes per day. The company has four production plants situated in Pratappur, Rudauli, Kundarkhi, and Utraula in Uttar Pradesh. The company headquarter is situated in Maharashtra.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-34.52%	131.37%	332.25%

3. The Andhra Sugars Limited

Andhra Sugars Limited was incorporated in August 1947 by Dr. Mullapudi Harishchandra Prasad. The company commenced its first sugar factory at Tanuku with a crushing capacity of 600 tonnes of sugarcane. The diversified its business into the chemicals sector. The company commissioned another plant in 1997 as the Taduvai Sugar Plant. The company’s headquarters are situated in Andhra Pradesh.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-33.27%	-34.77%	59.13%

4. Dwarikesh Sugar Industries Limited

Dwarikesh Sugar Industries Limited was incorporated in 1993. They got their first sugar plant commissioned in 1995 at Dwarikesh Nagar. The founder of the company is Mr. Gautam R. Moraka. The company primarily focuses on sugar and ethanol production. The company launched its IPO in 2005 and raised capital to increase its production capacity. The company had two plants, which began supplying surplus power to the state grid. The company’s headquarters are situated in Maharashtra. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-35.84%	-54.62%	100.91%

5. Ugar Sugar Works Limited

Ugar Sugar Works Limited was founded in 1939 and is one of India’s oldest sugar companies, founded by Shri V.S. Shirgaokar. In 1940, the Shirgaokar Brothers took the management into their own hands and took the company to new heights. The company established its first plant in Karnataka, and later diversified into distilleries and power generation. The company produces white crystal sugar of various grades such as M-30, S-30, and SS-30. The company has its headquarters in Karnataka.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-411.14%	-7.02%	243.86%

6. Rajshree Sugars & Chemicals Limited

Rajshree Sugars & Chemicals Limited was incorporated in 1985 by G. Varadaraj. The company has four refineries in Tamil Nadu. The company primarily focuses on the manufacturing of sugar and its by-products. The company recently acquired Trident Sugars. The company has its headquarters in Tamil Nadu. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-41.42%	45.12%	211.11%

Key Performance Indicators (KPIs)

The key performance metrics of penny sugar stocks are as follows:

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Shree Renuka Sugars Limited	4.10	-2.74	0	25.50	-3.50
Bajaj Hindusthan Sugar Limited	1.65	-0.44	-0.55	1.01	0.85
The Andhra Sugars Limited	3.49	1.62	1.62	3.73	0.01
Dwarikesh Sugar Industries Limited	5.22	1.71	2.89	7.19	0.62
Ugar Sugar Works Limited	1.97	-1.22	-7.52	8.31	2.83
Rajshree Sugars & Chemicals Limited	4.21	1.26	3.06	5.03	1.13

Read Also: Top 10 Steel Penny Stocks in India

Benefits of Investing in Penny Sugar Stocks

The significant benefits of investing in penny stocks are as follows:

1. Global Demand: Sugar tends to have consistent demand, as it is less sensitive to economic fluctuations compared to other commodities. Therefore, these companies have a stable revenue.
2. Raw Material: Sugar is used as a raw material for the food and beverage industry. Additionally, with the growing cafe culture and processed food demand, the sector is poised for further growth.
3. By-products: The by-product of the sugar industry includes ethanol and power, which can also be an alternate source of income for the company.
4. Government Incentive: The Government introduces various incentives for ethanol blending, which can be beneficial for the sugar companies.

Factors to be considered before investing in penny sugar stocks

There are various factors to be considered before investing in sugar penny stocks, such as:

• Financial Health: The company’s financial health must be checked before making any investment. Company’s revenues and profit margin play an important role in determining the company’s financial position.
• Raw Material: The sugar industry’s performance depends on the sugarcane production and the monsoon.
• Management: Check whether the company has a strong management team and a proven track record before making any investment.

Future of Penny Sugar Stocks

The government has implemented various initiatives to increase ethanol production, due to which the sugar companies will be direct beneficiaries. The government has announced a goal of 20% ethanol blending by 2030. Along with this, the food and beverage (F&B) industry uses sugar as a raw material, and with the expansion of the F&B industry, the sugar companies will continue to grow. Hence, we can say sugar penny stock will have a bright future.

Read Also: 10 Fastest Growing Penny Stocks in India

Conclusion

On a concluding note, the sugar industry provides an opportunity to participate in the growing economy of the country, as India is the second-largest producer of sugar in the world. Sugar penny stocks are companies which are primarily engaged in the production of sugar and their by-products, including ethanol and power. However, investment in penny stocks comes with greater risk as they tend to be highly volatile and generally lack financial stability. Therefore, it is advisable to consult your investment advisor before making any investment decision.

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