Best stocks to buy today, as recommended by NeoTrader's Raja Venkatraman
Sugar production in 2025
As of 15 May 2025, India’s sugar production for the 2024-25 season reached 25.74 million tonnes, according to the Indian Sugar Bio-Energy and Manufacturers Association (ISMA). This figure reflects a stable output despite climatic challenges, including El Niño effects and groundwater stress. Notably, 3.5 million tonnes of sugar were diverted toward ethanol production—up from 2.15 million tonnes last season—highlighting the sector’s growing alignment with India’s ethanol blending goals.
The USDA projects sugar production for the 2025-26 marketing year to rise to 35 million metric tonnes (raw value), a 26% increase over the previous year, driven by improved monsoon conditions and expanded cane acreage.
Ethanol synergy: A game changer
The ethanol revolution has transformed the sugar industry’s economics. With India’s ethanol production capacity now at 18,100 million litres, of which 8,160 million litres come from molasses, sugar mills are increasingly integrated into the biofuel value chain. This shift has created a reliable market for sugarcane, improved farmer incomes, and reduced payment delays.
In May 2025 alone, India achieved a 19.8% ethanol blending rate, with 951 million litres blended into petrol. This progress not only supports energy security but also reduces carbon emissions and saves foreign exchange.
Sugar stocks: Q4 FY25 and FY24 performance
The sugar sector delivered a mixed but largely positive performance in Q4 FY25, with several companies reporting robust revenue and profit growth:
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Overall, the sugar industry posted 14.7% year-on-year growth in operating profit and 7.1% revenue growth in Q4FY25. For the full fiscal year, however, the sector saw -5.28% return, reflecting volatility due to policy shifts, global price fluctuations, and ethanol-linked uncertainties.
Challenges and outlook
The sugar industry includes declining production in India, with a decrease of 18.38% in sugar output during the 2024-25 season up to 15 May. This decline is attributed to lower sugarcane yields and reduced cane availability for crushing. Despite this, India may still export up to 800,000 tonnes of sugar, lower than the permitted quota of 1 million tonnes for the 2024-25 season.
Despite strong fundamentals, the industry faces headwinds. Excise levies in states like Haryana and Punjab, high production costs, and GST on crude ethanol (currently 18%) are dampening margins. Aligning state policies with national ethanol goals and rationalizing taxes on flex-fuel vehicles could unlock further growth.
Looking at the above factors, I have selected some candidates from this sector that is showing potential to revive in the next few months.
Three stocks from this industry you can consider, recommended by NeoTrader’s Raja Venkatraman:
EIDPARRY (Cmp 1056.50)
Buy above 1060 and on dips near ₹1,020 with stop below ₹1,010 for a rise towards ₹1,125-1,150.
Why it’s recommended: Steady rise seen in this counter to the upside, as can be seen on the charts, coupled with steady buying interest being developed at every decline, has pushed the prices ahead. Ahead of the results, the prices have pushed beyond the median line, which spells well for the counter. The Sugar sector is continuing to witness steady buying interest that is driving the trends upward. The RSI is continuing to push for more upside and can be considered as a continuation of the positive signs of resumption.
Key metrics: P/E: 15.88 | 52-week high: ₹1074.90 | Volume: 582.94K
Technical analysis: Support at ₹1,125, resistance at ₹1,400.
Risk factors: Issues arise related to health and safety, the environment, and the production process itself.
Buy: Above ₹1,060 and dips to ₹1,020.
Target price: ₹1,125-1,150 in 1 month.
Stop loss: ₹1,010.
BAJAJHIND (Cmp 25.92)
Buy above ₹26 and dips to ₹24, stop ₹23 target ₹28.50-30
Why it’s recommended: Stocks from the pharma space have been doing well in recent months. This counter has managed to hold on to key support zones around ₹35, and the prices quickly revived above the near-term support zone to head strongly higher in the latter half of the week. We can observe that there are sizeable volumes building up, suggesting that the prices could now travel to the next resistance zone around ₹30. The demand at lower levels and a nice long body bullish candle does suggest more upside in the coming sessions.
Key metrics: P/E: 755.39 | 52-week high: ₹46.10 | Volume: 29.74M
Technical analysis: Support at ₹22, resistance at ₹35.
Risk factors: Issues arise related to health and safety, the environment, and the production process itself.
Buy: CMP and dips to ₹24.
Target price: ₹28.50-30 in 1 month.
Stop loss: ₹23.
ANDHRASUG (Cmp 83.37)
Buy CMP and dips to ₹79, stop ₹77.50 target ₹88-91
Why it’s recommended: ANDHRASUG is showing some steady progress, and the periodic higher high higher low formation is indicating that the trends are firmly hinting at some potential upside in the coming days. The Cup and Handle formation seen over the last few weeks, as per Ichimoku TS & KS lines, is hinting at a possible upward drift.
Key metrics: P/E: 35.72 | 52-week high: ₹126.20 | Volume: 415.98K
Technical analysis: Support at ₹69, resistance at ₹93.
Risk factors: Issues arise related to health and safety, the environment, and the production process itself.
Buy: CMP and dips to ₹79.
Target price: ₹88-91 in 1 month.
Stop loss: ₹77.50.
India’s sugar industry in 2025 is no longer just about sweeteners—it’s about sustainable energy, rural livelihoods, and strategic self-reliance. With ethanol integration, policy support, and resilient production, the sector is poised to remain a cornerstone of India’s green growth story.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.