Multibagger Alert: This sugar manufacturer has given stellar returns of 255.58 per cent in the past one year!

The company is focusing on ethanol production to cater the increasing demand for ethanol.

Triveni Engineering & Industries Limited is a sugar manufacturing and engineering company that has given investors stellar returns of 255.58 per cent over the last year. The share price of the company stood at Rs 70.15 on February 15, 2021, and since then, it has more than tripled investor wealth.

Headquartered in Noida, Triveni Engineering & Industries Limited is one of the largest sugar manufacturers in India and the market leader in its engineering businesses comprising high-speed gears, gearboxes, and water treatment solutions. As the largest Indian manufacturer of high-speed and niche low-speed gears and gearboxes, Triveni commands a dominant market share in the gears market in the region. As a focused player in the water treatment domain, the company offers end-to-end services and product mix in the technology spectrum of water and wastewater treatment. The company has a sugar crushing capacity of 60,000 TCD, distillery capacity of 320 KLD and co-generation power of 100 MW.

The company has reported 10 per cent YoY in revenue from Rs 1,123.08 crore to Rs 1,235.44 crore. Revenue of the company has increased by 6.96 per cent QoQ. PBIDT (Excl Ol) of the company has declined 89.09 per cent QoQ and it has increased by 26.40 per cent YoY. The company has reported a net profit of Rs 122.33 crore with a growth of 124.42 per cent QoQ and 38.98 per cent YoY. Net profit margin of the company has increased by 206 basis points YoY.

The company is increasing its distillery capacity from the current 11 crore litre per annum to 22 crore litre per annum by FY24 to utilise B-heavy, grain and sugarcane juice route to produce ethanol. With distillery capex, TEL would be able to increase its ethanol volumes 2.1x to 22 crore litre by FY24. 

The sugar industry has seen a significant reduction in sugar inventory in the last one year, which along with the increasing sugarcane diversion towards ethanol is leading to an increase in sugar prices. Triveni has been largely benefited from relatively better sugarcane availability in the season, ramping up of ethanol capacities and higher domestic sugar prices.

At 3:50 pm on Tuesday, the stock of Triveni Engineering and Industries Limited was trading at Rs 273.85, up by 7.25 per cent or Rs 18.5 per share on BSE. The 52-week high of the script is recorded at Rs 300 and the 52-week low at Rs 69 on the BSE.