Best Sugar Stocks to Invest In During 2021

The sugar industry is a crucial segment of the global commodity market. For investors looking to dip their toes into this sector, there are several prominent players that have shown promising growth and stability. In this article, we will discuss some of the best sugar stocks to invest in during the year 2021. Whether you are a seasoned investor or just starting your journey, the insights provided here could prove invaluable.

Simbhaoli Sugars

Simbhaoli Sugars has seen an improvement in its debtor days, dropping from 36.97 to 27.69 days. However, the company has a below-average interest coverage ratio, which might pose some risks. Over the past five years, there has been a meager sales growth of 2.59%, indicating a need for more robust performance. Nonetheless, the company's improved debtor days suggest better liquidity and operational efficiency.

Rana Sugars

Rana Sugars has exhibited significant profitability growth, delivering a Compound Annual Growth Rate (CAGR) of 38.49% over the last five years. Despite this, the company has not ventured into dividend payouts. With a sales growth of 7.39% over the past five years, Rana Sugars offers potential for future growth, especially as the sugar market continues to stabilize.

Dharani Sugars and Chemicals

Achieving a Robust Return on Assets (ROA) and profit growth, Dharani Sugars and Chemicals stands out. The company's ROA has been improving steadily over the past two years, and it has seen significant growth in net profit alongside an increasing profit margin quarter over quarter (QoQ). Importantly, Dharani has no promoter pledge, ensuring a clear and transparent ownership structure.

SBEC Sugar

SBEC Sugar has also been managing its assets efficiently, improving its ROA over the past two years. The company has experienced a growth in net profit, aligning with an increasing profit margin quarter over quarter. Additionally, like Dharani Sugars and Chemicals, SBEC Sugar has no promoter pledge, which is a positive sign for investors.

Bajaj Hindusthan Sugar

Bajaj Hindusthan Sugar has been effectively utilizing shareholder funds, as indicated by its improving Return on Equity (ROE). Over the past two years, the company's ROA has been improving, and it has shown growth in net profit with a higher profit margin every quarter. The absence of a promoter pledge ensures a clear and transparent management structure.

Dalmia Bharat Sugar and Industries

Dalmia Bharat Sugar and Industries has demonstrated the ability to reduce debt, indicating a healthier financial position. The company is anticipated to deliver a strong quarter, and due to its excellent profit growth of 40.45% CAGR over the past five years, it offers significant investment potential.

Mawana Sugars

Mawana Sugars has also managed to reduce its debt, and its stock is trading at 1.08 times its book value, suggesting a relatively fair valuation. The company has delivered an impressive profit growth of 141.61% CAGR over the past five years, which is a strong indicator of future growth in the sugar industry.

Summary and Investment Advice

While many sugar stocks have shown potential, it is important to conduct thorough research and consider multiple factors such as financial health, market trends, and overall industry outlook. It is always advisable to diversify your portfolio to mitigate risks.

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Stay informed, stay invested. Happy investing!

Keywords: sugar stocks, investment opportunities, 2021 sugar industry