Should I buy Kothari Sugar stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Kothari Sugar for over three years. Every month, hundreds of thousands of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Kothari Sugar.

What is Kothari Sugar?

What is the Kothari Sugar stock price?

The price of Kothari Sugar stock is declining this week. As of now, Kothari Sugar trades at ₹37.57 per share, marking a 24-hour decrease of 0.27% and a weekly slip of 0.79%. The company’s market capitalization stands at ₹311 crores, while the three-month average volume is around 61,600 shares. Kothari Sugar has a P/E Ratio of 47.5 and currently offers a dividend yield of 1.33%. Its low beta of 0.27 suggests limited volatility compared to wider market movements, offering both stability and potential opportunities for patient investors.

Our full analysis of the Kothari Sugar stock

Having thoroughly reviewed Kothari Sugar’s most recent financial results and the stock’s multi-year performance, our analysis integrates valuable data from technical indicators, market metrics, sector dynamics, and peer benchmarking—refined through our analytical models. By leveraging a blend of expert sources and proprietary algorithms, we aim to identify quality opportunities in this ever-evolving sector. So, why might Kothari Sugar stock once again become a strategic entry point into the agritech and renewable energy landscape in 2025?

Recent performance and market context

Kothari Sugar stock has experienced a notable correction over the past year, sliding from its previous highs to a current level of ₹37.57 as of July 2025. While the recent six-month and yearly movements show declines of nearly 18% and 36% respectively, it’s worth highlighting that this period has been punctuated by specific one-off operational challenges, notably adverse weather impacting cane supply. Yet, liquidity remains robust and the stock continues to command a vibrant presence on the NSE and BSE, with average volumes above 61,600 shares per day and a healthy market capitalization of ₹311 crores. Importantly, the broader sector context is rife with optimism: India’s government continues to champion ethanol blending initiatives, and demand for sugar and renewables remains high across the subcontinent, positioning industry leaders for renewed cycles of growth. Kothari Sugar’s strategic expansions in both distillery and cogeneration offer vital growth vectors, making its recent price decline an opportunity for enterprising investors.

Technical analysis

Studying the technical landscape, Kothari Sugar’s indicators suggest compelling prospects for a rebound. The 14-day RSI sits at 47.8, indicating a balanced market with room for bullish momentum to emerge, especially as the Money Flow Index nears oversold territory at 29.9—a classic precursor to upward technical reversals. The stock is currently trading around its short-term 20- and 50-day moving averages at ₹37.83, while the 100-day SMA at ₹36.67 offers a sturdy floor. Importantly, the ₹36.40 level stands out as a robust technical support, limiting downside risk. Though six out of eight moving averages point to a bearish trend, such configurations often precede dynamic trend reversals, especially when fundamental drivers remain intact. The low beta of 0.27 adds an additional layer of stability, making Kothari Sugar a candidate for accumulation at cyclical lows.

Fundamental analysis

On the fundamental front, several pillars support the company’s intrinsic value and future runway:

• Resilient revenue model: Despite a sharp 38% drop in revenues to ₹310 crores for FY25 due to climatic disruption, Kothari Sugar is well-positioned to recapture volumes with normalized weather conditions. Its diversified structure—62% sugar, 20% distillery, 18% energy—provides both stability and future growth drivers.
• Profitability renewal: Although net profit slipped 64.6% to ₹10.4 crores in FY25, the business remains profitable overall, and cost-saving programs signal management’s commitment to restoring margin quality.
• Attractive valuation: Trading at a P/E of 47.5, the stock reflects anticipated recovery across the Indian agri-processing sector. Its price/book ratio of 1.08 remains attractive given the company’s vertical integration strengths and solid asset base.
• Strategic expansion: Ongoing investments in ethanol production align with government roadmaps, and cogeneration capacity supports both environmental and financial objectives. The company’s Chennai-based operations benefit from proximity to key cane-growing belts.
• Diversification and innovation: Expansion into premium distillery products and renewable energy highlights adaptability and positions Kothari Sugar as a forward-thinking sector leader.

Together, these points anchor a robust case for the company’s long-term value, especially as macroeconomic winds shift in favour of sustainable and integrated agri-businesses.

Volume and liquidity

Liquidity is a linchpin for investor confidence, and Kothari Sugar’s trading volume has remained resilient above 61,600 shares over a rolling three-month window. This consistent activity is notable for a mid-cap stock, reflecting sustained analyst interest and institutional monitoring. The sizable promoter holding of over 73% further balances the float, ensuring price movement is both dynamic and adequately supported. These liquidity characteristics facilitate easy entry and exit for investors, and the steady daily turnover can serve as a bellwether of renewed market faith as catalysts emerge.

Catalysts and positive outlook

Kothari Sugar’s outlook is brightened by a series of concrete, forward-looking catalysts:

• Government policy tailwinds: The renewed push for ethanol blending targets and sugar deregulation directly benefit operational margins and sales channels.
• Reopening of capacity and seasonal rebound: FY26 is poised for a crop supply rebound. With more clement weather and multiple processing units ready for activation, volume recovery looks well within reach.
• Product innovation: Advances in energy cogeneration and newer distillery lines (including premium ethanol and specialty spirits) ensure diversification beyond commodity sugar.
• ESG and sustainability: As resource-efficient energy production rises in importance, the company’s cogeneration initiatives may attract ESG-focused capital.
• Leadership continuity: The recent reappointment of Mr. Arjun B. Kothari as Managing Director and a steady executive bench inspire further confidence in the execution of strategic initiatives.

Such levers could trigger rapid margin improvement, especially given the recent cyclical downturn and the company’s historical agility in capitalizing on favourable sector cycles.

Investment strategies

Kothari Sugar’s current technical position and structural fundamentals present several compelling investment strategies:

• Short-term: Traders may look to accumulate close to the strong technical support zone at ₹36.40, anticipating a technical rebound, particularly given oversold indicators.
• Medium-term: Investors with a medium-term horizon may benefit from holding ahead of expected operational normalization and seasonal recovery in cane supply, with a target of ₹48.84 (+30% from current levels).
• Long-term: For those seeking exposure to India’s evolving agritech and ethanol story, holding Kothari Sugar shares offers the potential for multi-year capital gains, fueled by sectoral reforms, policy privileges, and new product launches. Dividend-seekers can also monitor for reinstatement of more regular payouts as margins recover.
• Ideal positioning: Building core positions during periods of sector-wide pessimism, and ahead of harvest or government policy catalysts, allows for enhanced upside as market sentiment improves.

Is it the right time to buy Kothari Sugar?

With key support levels establishing a technical floor and both government policy and sector fundamentals poised to turn positive, Kothari Sugar seems to represent an excellent opportunity for investors seeking diversified exposure to India’s integrated agro-energy sector. Its established market presence, balanced business mix, and forward-looking management distinguish it as a value buy for the coming upturn in regional agriculture and renewable fuels. As the cyclicality of raw material supply normalizes and new catalysts gain momentum, the stock may be entering a new bullish phase.

Investors willing to act before consensus returns may find Kothari Sugar well-positioned for rewarding performance, combining resilience, growth potential, and sustainable sectoral trends.

How to Buy Kothari Sugar Stock in India

Buying Kothari Sugar stock online is simple and secure with a SEBI-regulated Indian broker. Investors have two main options: buying shares directly (“spot buying”) to own the stock, or trading via Contracts for Difference (CFDs) to speculate on price movements without ownership. Both approaches are accessible online and allow flexibility depending on your investing style. A detailed comparison of brokers and their specific features can be found further down the page.

Spot buying

A cash purchase involves buying Kothari Sugar shares directly on the NSE or BSE, making you a shareholder and eligible for any future dividends. Brokerages usually charge a fixed commission per order, typically around ₹20–₹30 per trade in India.

Gain scenario

If the Kothari Sugar share price is ₹37.57, you can buy approximately 2,640 shares with a $1,000 stake (about ₹83,500), including a brokerage fee of approximately $5 (₹420).

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading lets you speculate on Kothari Sugar’s price without owning the stock, often using leverage to amplify gains or losses. Common costs include the spread (the difference between buy and sell prices) and overnight financing charges for positions held longer than a day.

Example of a Leveraged CFD Gain

You open a CFD position on Kothari Sugar shares, with 5x leverage.

This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Always compare fees and terms from multiple brokers in India before buying Kothari Sugar, as charges can directly affect your returns. The best method—spot buying or CFD trading—depends on your risk appetite, investment goals, and market experience. Explore our broker comparison lower on this page to choose with confidence.

Our 7 tips for buying Kothari Sugar stock

The latest news about Kothari Sugar

Kothari Sugar confirms the reappointment of Mr. Arjun B. Kothari as Managing Director for 3 years. The Board’s resolution on 27 June 2025 extends his term from 1 September 2025 until August 2028, signalling continuity and stability in leadership at a time of sector challenge. This move underlines the promoter group’s commitment to operational recovery and strategic navigation of sector headwinds.

Kothari Sugar’s stock price maintains stability around ₹37.57 this week, with very low volatility observed. The share price saw a minor 0.79% decline over the last seven days, while intraday fluctuations remain muted. Low beta (0.27) indicates low market risk, offering a relatively defensive stance amid broader sector sell-offs in India.

Recent oversold technical signals suggest potential for a short-term rebound in Kothari Sugar stock. While the MACD and moving average indicators are negative, the Money Flow Index (MFI) has dipped to 29.9 (oversold territory). This technical reading often precedes technical rebounds, especially when core fundamentals and sector support exist.

The Indian government’s sustained ethanol blending programme continues to support medium-term demand for Kothari Sugar’s products. Despite revenue declines, company operations still benefit from structural demand supported by mandates for ethanol mixing in petrol and favourable regulatory frameworks, enhancing prospects for its distillery segment.

Kothari Sugar’s exceptional income from energy sector provisions improves liquidity and margin outlook for FY25. The company received ₹6.34 crores in one-off income related to the reimbursement of an energy provision, directly boosting bottom-line results and offsetting temporary losses from adverse weather impacts on sugarcane supply.

FAQ

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.