Multibagger stocks in 2021: A huge number of large-cap, mid-cap, and small-cap stocks have joined the list of multibagger stocks in 2021, owing to the recent strong surge in the Indian stock market. There are also some penny stocks on this list. While the Nifty has returned about 27.65% year to date (YTD), certain penny sugar firms have become multi-bagger penny stocks over this time. This is possible due to rising sugar costs on worldwide markets and the Government of India’s (GoI) new blended ethanol program.
Here is a list of 5 multibagger penny stocks from the sugar industry:
1] Bajaj Hindusthan Sugar:
Based in Maharashtra, Mumbai, India, Bajaj Hindusthan Sugar Ltd. (BHSL), a subsidiary of the ‘Bajaj Group,’ is India’s largest ethanol and sugar manufacturer.
The company operates fourteen sugar plants in the northern Indian state of Uttar Pradesh (UP), including Golagokarannath, PaliaKalan, and Khambarkhera (district Lakhimpur Kheri), Barkhera (district Pilibhit), Kinauni (district Meerut), Gangnauli (district Saharanpur), Thanabhavan and Budhana (district Muzaffarnagar), Bilai (district (district Balrampur).
The multibagger penny stock has been bull’s favorite in the last month as the multi-bagger share price surged from ₹14.50 to ₹16.60 apiece — giving around 14.50 percent return to its shareholders in this period.
In 2021, this sugar stock price has gone up from ₹6.15 to ₹16.60 per share levels — logging around 170 percent raise in this time horizon. However, if we check the share price history of this sugar stock, we can see that its lifetime closing high is 455.35 per share, indicating that it wasn’t always a penny stock. It had a severe decline beginning in April 2006, and by October 2008, its price had dropped into the double digits. Its price fell further into the single digits in April 2018.
2] Dharani Sugars & Chemicals Limited:
Dharani Sugars and Chemicals Limited manufactures white sugar, generates power, and manufactures industrial alcohol. Sugar, distillery, and cogeneration are among the company’s goods and services. Sugar, Distillery, and Power are the company’s segments. Molasses and other by-products are included in the Sugar section.
It is involved in the production of alcohol, such as ethanol. It operates three integrated sugar mills with a combined crushing capacity of 10,000 tonnes of cane per day (TCD) and a multi-product distillery with a daily capacity of 160-kilo liters (KLPD).
This multibagger penny stock of 2021 has returned about 11% in the previous month, while it has risen from $6.40 to $21.05 per share in the last six months, a 230 percent increase. This penny sugar stock rose from 5.70 per share to 21.05 per share in Year Date time, representing a 270 percent increase in this time frame. This stock used to trade in the triple digits in 2009, according to its history. However, it had a significant downturn in December 2009, and its price dropped into the double digits in January 2010. However, the decline persisted, and the sugar stock fell into the single digits in May 2019.
3] KM Sugar Mills:
KM Sugar Mills Ltd is a sugar production company. Sugar trading, distillery, and co-generation are the three segments in which the firm works. They provide white plantation sugar as well as raw sugar refining. In Faizabad, Uttar Pradesh, the business maintains a sugar production factory.
They have a distillery that produces rectified spirit ethanol as well as additional neutral alcohol. The Moti Super bio-fertilizer is made by the Bio Compost unit and sold under the brand Moti Super. The company KM Sugar Mills Ltd was founded in 1971. In the year 1942, the company was founded as a partnership firm called Kamlapat Motilal in Kanpur. Singhanias and Jhunjhunwalas started the firm. They had established a modest sugar milling facility in Kanpur. Because there was a severe scarcity of cane, the mill was forced to relocate to Faizabad.
This penny sugar stock has returned 12.50 percent in the previous month, while its prices have risen from 12.50 to 28.30 each in the last six months, yielding about 125 percent. This sugar price has risen from 11.90 to 28.30 per share in the year to date (YTD) of 2021, providing a 135 percent return to its owners.
4] Simbhaoli Sugars:
Simbhaoli Complex, located in Simbhaoli, Hapur District, Western Uttar Pradesh, is one of the Company’s original and oldest Manufacturing and Packing facilities. It currently has a cane crushing capacity of 9,500 TCD and can produce refined sugar at an output rate of 850 TPD and raw sugar at a rate of 200 TPD.
The Simbhaoli complex’s cogeneration facility has a total capacity of 62 MW, with 30 MW dedicated to captive use and 32 MW available for excess. The Simbhaoli Complex’s distillery section can generate 90 kiloliters of alcohol/ethanol each day (KLD). Bio manure is also produced at the site.
In the previous month, the price of this multi-bagger penny stock has risen from 26.15 to 31.20 per share, representing a 19.50 percent return. In the previous six months, the stock has risen from $7.65 per share to $31.20 per share, a 305 percent increase. This sugar business, on the other hand, has given a 295 percent return to its owners in 2021, as its share price has risen from $7.90 to $31.20 over this period.
5] Shree Renuka Sugars:
Shree Renuka Sugars is a multinational agricultural and biofuels company. The company is one of the world’s largest sugar producers, India’s top sugar maker, and one of the world’s largest sugar refiners. The company’s headquarters are in Mumbai (Maharashtra, India), while its corporate office is in Belgaum (Karnataka, India).
This multibagger penny stock has climbed from 26.15 to 30.15 levels in the previous month, representing a 15% increase, while its share price has grown from 10.75 to 30.15 per stock in the last six months, yielding 180 percent. Renuka Sugar’s stock price soared from 11.85 to 30.15 per share in 2021, representing a high 152 percent of increase in the recent time.
These are the five multibagger penny stocks that have returned up to 300 percent in 2021.