Should I buy Kothari Sugar stock in 2025?

What is Kothari Sugar?

How much is Kothari Sugar stock?

The price of Kothari Sugar stock is rising this week. As of now, the share trades at ₹40.88, showing a strong 7.02% gain in the last 24 hours and an impressive 14.8% jump over the week.

The beta of 1.12 suggests slightly higher than average market volatility. With the stock moving well below its 52-week high, investors may find both risks and opportunities in its current momentum.

Our full analysis on Kothari Sugar stock

Having conducted a rigorous assessment of Kothari Sugars and Chemicals Limited’s latest financial disclosures and reviewed its stock trajectory over the past three years, we leveraged a proprietary blend of financial metrics, technical signals, sector trends, and competitive benchmarking to form a holistic market thesis. With Kothari Sugar’s recent return to profitability, robust operational improvements, and an intriguing undervaluation relative to assets, the stage appears set for renewed investor attention. So, why might Kothari Sugar stock once again become a strategic entry point into India’s rapidly evolving agri-processing sector in 2025?

Recent Performance and Market Context

Kothari Sugar has delivered a dynamic price performance in 2025, signaling a shift in momentum that market participants would do well to monitor closely. As of May 20, 2025, the stock trades at ₹40.88, up an impressive 7.02% intraday and posting a 14.8% gain over the past week. This surge comes even as the stock, like many of its sugar sector peers, remains 37.65% below its 52-week high, suggesting ample scope for a valuation rebound should fundamentals continue to improve.

The company’s latest operational update—the successful completion of the 2024-2025 sugarcane crushing season at its flagship Kattur unit—signals both full production capability and timely delivery to market, which is essential in a cyclical sector vulnerable to supply and regulatory shocks. Kothari Sugar’s standing is further enhanced by India’s broader agri-sector momentum, with rising demand for distillery and ethanol blending, export incentives, and proactive government policy supporting the domestic sugar industry. The sharp 610% YoY surge in net profit in Q3 FY2024-25, paired with a debt-free balance sheet, underscores a compelling turnaround narrative that is garnering renewed confidence among both retail and institutional stakeholders.

Technical Analysis

Several technical indicators point towards a constructive phase for the stock, strengthening the case for fresh accumulation. The Relative Strength Index (RSI 14) at 60.34 is maintaining neutrality, but it is trending towards the upper bound, reflecting underlying buying interest without having entered overbought territory. Notably, the Moving Average Convergence Divergence (MACD) has shifted bullish, currently at 0.25, corroborating emergent upward momentum.

Short- and medium-term moving averages provide further affirmation. The 20-day SMA at ₹36.69, 50-day at ₹35.32, and 100-day at ₹38.29 all sit comfortably below the current price, highlighting the stock’s recent breakout and serving as robust support zones. While the longer-term 200-day SMA at ₹45.63 still poses mild resistance, the gap to this level leaves meaningful room for short-term appreciation.

Key technical support levels cluster at ₹39.03, ₹37.17, and ₹35.97; any short-term retracement toward these levels could constitute compelling entry points. Immediate resistance sits at ₹42.09, with further hurdles at ₹43.29 and ₹45.15—levels that, if breached, could signal entry into a new bullish phase for the stock.

Fundamental Analysis

Looking beyond price action, Kothari Sugar’s fundamentals present several hallmarks of an attractive investment proposition in the cyclical sugar sector:

• Earnings Power: Despite a challenging revenue environment (Q3 FY2024-25 revenue down 37.46% YoY), net profit soared to ₹5.40 crore—a 610% improvement—driven by leaner cost structures, higher efficiency, and diversified sales from distillery and power co-generation.
• Profitability and Asset Strength: The company has delivered 19.9% CAGR in profit over the past five years and currently offers attractive returns (ROE: 10.6%; ROCE: 13.6%), signaling sound capital allocation.
• Balance Sheet Fortitude: Kothari Sugar stands out as virtually debt-free (D/E ratio: 0.00), a strategic advantage that minimizes financial risk and enhances resilience in cyclical downturns.
• Valuation Advantage: The stock trades at a modest 1.2x book value (₹34.33 book value per share) and P/E of 20.2, moderate for a company with improving earnings and substantial asset backing.
• Segmental Diversification: The revenue mix—62% from sugar, 20% from distillery, and 18% from power—offers protection against commodity price swings and points to latent optionality from India’s ethanol-blending drive.

Strategic execution and operational efficiency, visible in higher recovery rates in sugar production and record alcohol output in FY23, bolster the investment case even amid cyclical pressure on topline growth.

Volume and Liquidity

Current trading volume stands at a healthy daily average of 259,803 shares, supporting confident entry and exit for both institutional and retail investors. This liquidity profile demonstrates sustained interest and facilitates dynamic price discovery, particularly as the stock approaches key technical inflection points.

Additionally, the reasonable market capitalization (₹317 crore) and a float composition anchored by 73.53% promoter holding—unchanged in the recent quarter—signal management’s continued commitment while leaving sufficient depth for valuation rerating.

Catalysts and Positive Outlook

Kothari Sugar is poised to benefit from several near- and medium-term catalysts:

• Operational Leverage and Seasonality: The completion of the latest crushing season enhances the company’s revenue momentum and aligns inventories for subsequent sales cycles, potentially driving margin expansion in upcoming quarters.
• Government Policy Tailwinds: India’s ongoing ethanol blending program, export facilitation, and sectoral reforms provide a favorable environment for integrated sugar and distillery majors.
• ESG and Diversification: The company’s power co-generation and rising alcohol production speak to a broader sustainability agenda and multiple value-creation levers.
• Management Stability: The presence of a seasoned leadership team, led by Chairperson Nina Bhadrashyam Kothari, supports consistent operational policy and strategic vision.
• Market Positioning: Despite modest revenue growth in recent years, a sharp profit turnaround, robust asset coverage, and diversified revenue streams suggest that Kothari Sugar is well positioned for an operational inflection as sector dynamics improve.

Broader macroeconomic trends—such as rising consumption, rural income growth, and global supply-demand imbalances—are likely to fuel upside for well-capitalized, diversified players like Kothari Sugar.

Investment Strategies

Kothari Sugar offers compelling arguments for both tactical and strategic positioning:

• Short-Term: Investors seeking to capitalize on current momentum may find the stock attractive as it bounces from technical supports, driven by the recent operational milestone and strong Q3 earnings. Target entries near ₹39.00–₹40.00, with eyes on resistance at ₹42.09 and ₹45.15, could deliver short-term outperformance if volumes remain elevated.
• Medium-Term: As the benefits of the latest crushing season materialize through H1 FY2025-26, and if government policy continues supporting blended fuels, Kothari Sugar’s diversified business model and robust balance sheet may lead to a rerating.
• Long-Term: For patient investors, the case is underpinned by the company’s debt-free status, a multi-year profit CAGR of nearly 20%, solid book value, ongoing diversification, and embedded optionality in power and distillery segments. Decadal outperformance (+334% over five years) demonstrates the upside potential when sectoral conditions improve.

Ideal portfolio allocation strategies might include initial positioning during periods of consolidation near strong support levels, with the flexibility to accumulate further on technical breakouts or following favorable government policy announcements.

Is It the Right Time to Buy Kothari Sugar?

In summary, Kothari Sugar stands out at this juncture for several reasons: an impressively clean balance sheet, resilient profitability, a substantial long-term compounding track record, and a business model fortified by diversification. The stock’s current discount to book value, combined with clear technical momentum and a supportive macro sector outlook, creates a scenario where upside potential appears to outweigh the residual risks of sales volatility and sector cyclicality.

With operational catalysts in play and the financial foundation to back sustained expansion, Kothari Sugar seems to represent an excellent opportunity for investors looking for a blend of defensive strength and growth potential in India’s evolving sugar and ethanol market. The combination of strong promoter commitment, improved profitability, and a technical structure favoring accumulation positions Kothari Sugar as a stock that justifies renewed investor interest at current levels.

For investors seeking quality exposure to the cyclically resurgent agri-processing sector, Kothari Sugar’s fundamentals and market positioning suggest it may be entering a promising new phase—one marked by operational turnaround and the potential for notable capital appreciation in 2025 and beyond. The conviction is reinforced by the company’s capacity to navigate both sectoral volatility and seize emergent opportunities, presenting a unique entry point for diversified Indian equity portfolios.

How to buy Kothari Sugar stock in India?

Buying Kothari Sugar stock online is simple, secure, and highly accessible for investors in India. By using a regulated broker, you can benefit from robust investor protection and transparency, whether you prefer traditional spot share buying or trading Contracts for Difference (CFDs) for more flexibility. Spot buying lets you own the actual shares, while CFDs allow you to speculate on price movements, often with leverage. Each method carries unique features, catering to different investment profiles. To find the most suitable option for your needs, reviewing our comprehensive broker comparison lower on this page is strongly recommended.

Spot Buying

When you buy Kothari Sugar shares for cash via a regulated NSE broker, you become the direct legal owner of those shares. Your holdings are registered in your demat account, and you can enjoy any dividends or shareholder rights. Typical brokerage fees for Indian retail investors are very competitive, often charged as a flat commission per transaction – for example, ₹20 to ₹30 per order (about $0.25–$0.35), regardless of trade size.

Example

Let’s see how this works with a stake of ₹83,000 (equivalent to about $1,000 at ₹83/USD):

• Kothari Sugar share price: ₹40.88
• ₹1,000 (₹83,000) investment: You could buy around 2,030 shares
• Estimated brokerage: ₹30 (about $0.35) per transaction

Gain scenario:
If the share price rises by 10% to ₹44.97, your shares would now be worth ₹91,300 (2,030 × ₹44.97).

• Result: Gross gain of ₹8,300 (about +$100), or 10% on your initial investment.

Trading via CFD

CFD trading on Kothari Sugar allows you to speculate on the stock’s price movement without owning the shares. CFDs are derivative contracts where you profit from the difference between the opening and closing price. They provide the option to use leverage, meaning you can take a larger exposure using less capital. Fees here include the broker’s spread (the difference between buy and sell price) and potential overnight financing costs if you keep positions open for more than a day.

Example

Suppose you have ₹83,000 ($1,000) and use 5x leverage for Kothari Sugar CFDs:

• Position opened: ₹83,000 × 5 = ₹415,000 market exposure
• Shares covered: Approximately 10,150 shares (₹415,000 ÷ ₹40.88)

Gain scenario:
If the stock rises by 8%, your position increases by 40% (8% price move × 5x leverage).

• Result: Profit of ₹33,200 (about $400) on your ₹83,000 stake, excluding spreads and daily financing charges.

Final Advice

Before investing, it’s crucial to compare broker fees, platform features, and regulatory protections. Transparent pricing, low commissions, and support for your preferred investment method (spot buying or CFDs) can make a significant difference to your long-term returns. Ultimately, your choice should depend on your investment goals, risk appetite, and whether you prefer direct ownership or exposure through leveraged products. For more details and to find your ideal broker, refer to our independent comparison further down this page.

Our 7 tips for buying Kothari Sugar stock

The latest news about Kothari Sugar

Kothari Sugar delivered an impressive 14.8% share price gain for the week ending May 20, 2025. This notable rise sharply outperformed both the broader market and its sector, highlighting renewed investor confidence possibly supported by positive momentum in recent trading sessions. The surge coincides with favorable technical indicators such as bullish signals from short-term moving averages (20-, 50-, and 100-day SMAs) and a MACD crossover, all of which point to near-term optimism among market participants on the Indian NSE.

The company recently completed its 2024-2025 sugarcane crushing operations at the Kattur unit in Tamil Nadu (May 4, 2025). This operational milestone signifies the successful conclusion of a critical part of its revenue cycle and sets the stage for its next production and sales phases. Efficient completion of the crushing season is vital for supply planning and inventory management, and it directly benefits the company's sugar and distillery business segments, which together represent over 80% of revenue. This locality-specific accomplishment is also important for stakeholders in Tamil Nadu, where the company is headquartered and maintains a substantial regional presence.

The latest quarterly results (Q3 FY2024-25) showed a 610.5% year-on-year rise in net profit despite declining revenues. Net profit jumped to ₹5.40 crore, reflecting strong margin management and cost efficiencies even as revenue dropped. The sharp increase in profitability, alongside an EPS of ₹0.65 and a 4.11% operating margin, offers promising signs of an operational turnaround. This profit growth, especially amidst sectoral volatility, may serve as a catalyst for sentiment improvement and supports the company's reputation for delivering on efficiency, which is highly valued in the cyclical sugar industry.

Kothari Sugar maintains a virtually debt-free balance sheet, further strengthening its financial resilience in a volatile market. As of the latest disclosed data, the company reports a debt-to-equity ratio of 0.00, eliminating interest burden concerns and enhancing its ability to weather industry downturns. This prudent capital structure is particularly appealing given the sector’s inherent risks and the volatility of agricultural commodities in India. The strong balance sheet also provides latitude for strategic investments or dividend payments, as evidenced by its recent 1.22% yield.

Promoter holding remained stable at 73.53% during the last quarter, while retail investor participation slightly increased. Unchanged promoter interest signals continued confidence from the leadership and offers a sense of stability and alignment with minority shareholders. The uptick in retail ownership to 25.24% suggests positive traction with Indian individual investors, potentially adding to trading liquidity and long-term support for the stock. This stable shareholding pattern, combined with growing grassroots investor interest, supports a constructive market environment for Kothari Sugar in the Indian equity landscape.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.