4 Best Ethanol Stocks in 2024 amid E20 Campaign Boost

As the government is trying to dilute more ethanol in gasoline, the chances are companies that make ethanol will directly benefit from this. Ethanol can also be used in the making of alcoholic beverages. Ethanol comes after the fermentation of sugar that’s why the government is helping sugar industries all over India. From rocket fuel to cosmetics, ethanol comes into use at every point. Even the Uttar Pradesh government earns a major part of excise duty from alcohol and encourages the sugar industries to produce more as well. Here we will know the 4 Best Ethanol Stocks in the 2024 amid E20 Campaign Boost.

E20 means diluting 20% ethanol and 80% motor fuel/petrol, but as per reports, E10 will cost the same as E20, but E20 will give less mileage than E10, which will be a major issue for consumers. Some best ethanol stocks that will benefit from the E20 government initiative are as follows:

• Shree Renuka Sugars: Shree Renuka Sugars Ltd. is a prominent company that makes a lot of ethanol, primarily in selling sugar, ethanol, and power. Not only this, but the company also sells fertilisers and pesticides. Though the company has been losing money for the last 5 years, increasing revenue shows a positive image of the company, and even though the company is controlling its net worth quite better than before, the stock’s current market price is ₹55.55.

• Balrampur Chini Mills: Balrampur Chini Mills Ltd. is a leading sugar-making company in India. The production units of Balrampur Chini Mills are located in many places in India, and it is also one of the biggest ethanol producers. Currently, the stock is trading near ₹401 and has been profitable for the last 5 years; the company’s revenue is constant, and the company’s net worth is increasing by around 10% year over year.

• Bannari Amman Sugars: Bannari Amman Sugars is a prominent sugar-making company in the southern part of India. The portfolio of the company covers everything from sugar to alcohol to gratine, and it is one of the best ethanol stocks to buy. The current market price of Bannari Amman Sugars is the highest among other sugar stocks, priced at ₹2358, and increasing profit and revenue shows optimistic management.
• Dalmia Bharat Inds: Dalmia Bharat Inds. is among the top leaders in the stock market, and other than sugar products, Dalmia Bharat Inds. makes alcoholic beverages and products. Dalmia Bharat also has an arm in the cement industry. The current market price of stock is ₹412 and the company’s revenue has grown significantly from the last 5 years, though profit declined in FY23. However, increasing net worth and revenue is promising for investors.