Best Ethanol Penny Stocks in India | Low-Priced Stocks List

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Ethanol penny stocks are the low-priced shares of small or microcap companies involved in the production and supply of ethanol, often trading at below ₹100. The best ethanol companies in India operate in the sugar- and grain-based ethanol segment and the biofuel segment, and benefit from global markets for renewable energy and cleaner fuel alternatives. The best ethanol industry stocks in India play an important role in the country’s energy markets, which drive both environmental sustainability and economic activity. A few years back, demand increased to tap renewable energy sources to reduce the country’s dependence on fossil fuels.

India imports 80% of its crude oil (fossil fuels) requirements, while playing an important role in renewable energy sources to meet the country’s expanding energy needs and protect its foreign exchange reserves and india governments also promoting the ethanol blending programs to reduce the crude oil imports and carbon emission, the best ethanol penny stocks in India have attracted teh attention from the investors those who are the multibagger return opportunities at low entry prices. However, while these multibagger ethanol penny stocks in India offer the potential for higher returns, they also come with higher risks, including low liquidity, policy change and price volatility. As a result, careful research and risk management are essential while investing in top ethanol penny stocks in India.

What are Ethanol Penny Stocks

Ethanol penny stocks are low-priced shares of small- or micro-cap companies involved in ethanol production and biofuels. These stocks attract attention due to government ethanol-blending policies and demand for clean energy, but they carry high risk due to volatility and low liquidity.   

Also Read: Drone Penny Stocks in India for 2026

Best Ethanol Penny Stocks in India 2026 By Market Capitalisation

Here is the best ethanol penny stocks list that has performed well in recent years, helping investors generate higher returns. The top Ethanol penny stocks in India include Bajaj Hindusthan Sugar, Kothari Sugars & Rajshree Sugars & Chemicals, Dollex Agrotech, and Sakthi Sugars, among others. Scroll down to explore more.  

Note:  The stocks listed in the above table are analysed by the research analysts at Univest and given with high accuracy or buy ratings. Thus, investors are no longer required to explore hundreds of Ethanol Penny stocks in India. Invest in the ethanol penny stocks list above for finding high-potential stocks from the best ethanol penny stocks for long-term investment.

Brief Overview of Ethanol Penny Stocks  

1. Bajaj Hindusthan Sugar Ltd

Founded – 1931

Headquarters – Mumbai, Maharashtra

Market Capitalisation- ₹2,189.00 crore

Bajaj Hindustan Sugar Limited is part of the Bajaj Group and is the largest integrated sugar and ethanol manufacturing company. It is the best ethanol penny stocks in India, operating 14 plants in Uttar Pradesh, with a crushing capacity of 1,36,000 tonnes per day and producing sugar, ethanol, and 449 MW of power. The company has the best ethanol penny stocks for long-term investment because its stock price has a 23% CAGR.

Bajaj Hindustan Limited is featured on our ethanol penny stocks list due to its expansion into renewable energy and ethanol production. The company is also focusing on growth through diversification into ethanol production to meet India’s 20% bleeding target by 2025, alongside strengthening its cogeneration power capacity.

2. Kothari Sugars & Chemicals Ltd

Founded – 1960

Headquarters – Chennai, Tamil Nadu

Market Capitalisation- ₹221.00 crore

Kothari Sugars & Chemicals is a prominent Tamil Nadu-based producer of ethanol, power and sugar. The company has become one of the top ethanol penny stocks in India; it has diversified into cogeneration of power, industrial alcohol, and bio-compost, with a 9MFY24 revenue split of approximately 62% from sugar and 20% from distillery operations. It operates two units in Kattur and Sathamangalam. The company has earned its place on the ethanol penny stocks list with its growing ethanol production capacity and strategic focus on the biofuel segment. 

3.  Rajshree Sugars & Chemicals Ltd

Founded – 1985

Headquarters – Coimbatore, Tamil Nadu

Market Capitalisation- ₹102.00 crore

Rajshree Sugars & Chemicals Limited is a prominent South Indian company that specialises in sugar, biotechnology, biotechnolgy and power. It is one of the best ethanol penny stocks in India, with a total crushing capacity of 11,500 TCD across three units in Tamil Nadu. It produces white crystals, brown sugar, organic manure, green power, and ethanol/industrial alcohol. The company has features on our ethanol penny stocks list due to its operating three modern, integrated sugarcane-based biorefinery complexes. 

Rajshree Sugars & Chemicals Limited is one of the top ethanol penny stocks in India, with reported strong performance in December 2025, driven by a major increase in crushing and sugar production compared to December 2024.

4. Dollex Agrotech Ltd

Founded – 2013

Headquarters – Indore, Madhya Pradesh

Market Capitalisation- ₹143.00 crore

Dollex Agrotech Limited is one of the best ethanol penny stocks in India because it is an Indian-based company engaged in the manufacturing and trading of sugar, with integrated operations including captive power cogeneration. The company has operated a 2,500-tonne-per-day crushing plant in Datia, Madhya Pradesh. 

The company has ranked on the latest ethanol penny stocks list and has delivered a strong 68.5% CAGR in profit growth over the last 5 Years. Dollar Agrotech Limited shows strong, high-momentum growth, with 75% annual revenue growth, supported by expansion into ethanol production, making it one of the top penny stocks in India. 

5. Sakthi Sugars Ltd

Founded – 1961

Headquarters – Tamil Nadu, India

Market Capitalisation- ₹207.00 crore

Sakthi Sugar Limited is one of the top ethanol penny stocks in India because it is a major indian producer of white crystal sugar, with an aggregate cane crushing capacity of 19,000-19,5000 tonnes per day. It is diversified into alcohol (150 KLPD capacity), 92 MW co-generation power plants, ethanol and soya products. The company stands out among multibagger ethanol penny stocks in India due to its expanding ethanol capacity and strong growth potential.

6. Gayatri Sugars Ltd

Founded – 1995

Headquarters – Hyderabad, Telangana

Market Capitalisation- ₹76.00 crore

Gayatri Sugar Limited is part of the Hyderabad-based Gayatri Group and is an integrated agro-industrial company in Telangana, India. It is one of the top ethanol penny stocks in India, with a P/E ratio of 254.75. The company operates two sugarcane-based units in Nizamsagar and Karmaredy, with a total crushing capacity of 7,000 tons per day, producing sugar, ethanol, and molasses from cane syrup, and generating 25.25 MW of cogeneration power, which is why it is the best ethanol penny stocks in India. 

7. Kesar Enterprises Ltd

Founded – 1932

Headquarters – Mumbai, Maharashtra

Market Capitalisation- ₹5.46 crore

Kesar Enterprises Limited is one of the best ethanol penny stocks in India because it is an Indian-based company that manufactures and sells sugar, spirits, and ethanol. The company, formerly known as Kesar Sugar Works Limited, operates in North India. This company is emerging as one of the most promising multibagger ethanol penny stocks in India, backed by its growing sales and marketing of a diverse product line. The company has ranked in the latest ethanol penny stocks list, delivering higher returns in the upcoming years. 

Factors Affecting Ethanol Penny Stocks in India

1. Government Ethanol Blending Policy

India plays a vital role in advancing higher ethanol-blending targets, such as E2, thereby increasing demand for ethanol producers. Select the top ethanol penny stocks in India that support policies, subsidies, and procurement programs from Oil Marketing Companies, directly impacting revenue growth.

2. Demand for Ethanol

While those investors are looking for the best ethanol penny stocks in India for long-term investments, you may study in detail the demand for ethanol penny stocks in the country and the potential for exports.

3. Crude Oil Prices 

High Crude oil prices directly impact the top ethanol penny stocks in India by increasing demand for ethanol blending, thereby indirectly supporting ethanol companies’ revenues. Select the best ethanol penny stocks lists to generate higher returns in the upcoming years.

4. Company Financial Health

Evaluate the best ethanol penny stocks in India, companies that have critical debt levels, cash flows, earnings growth and debt levels. You should analyse the ethanol penny stocks list that have a company’s financial performance by examining the revenue, growth ratio, profit and cash flow trends, etc. 

5. Weather Conditions

Ethanol production depends on crops like sugarcane and corn, which are weather-dependent. Floods, Droughts, and other weather events can decrease crop yields, negatively affecting the best ethanol penny stocks in India, ethanol prices, and ethanol production.

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Best Ethanol Penny stocks in India with P/E Ratio

Explore the best Ethanol Penny stocks in India and the Ethanol Penny Stocks List with their P/E ratio.

Best Ethanol Penny stocks in India with Dividend Yields

Explore the top ethanol Penny stocks in India with the highest dividend yield. 

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Benefits of Investing in the Best Ethanol Penny Stocks in India for 2026

1. High Growth Potential

The best ethanol penny stocks in India are mainly from small or micro companies. As earnings and production capacity increase, the top ethanol penny stocks in India deliver strong capital appreciation.

2. Low Entry Price

The best ethanol penny stocks in India trade at low prices, allowing investors to accumulate more shares with a smaller investment in the Indian share market. Select the best ethanol penny stocks list that delivers multibagger returns in the upcoming years.

3. Government Policy Support

Select from the ethanol penny stocks list that are backed by government support and policies such as India’s E20 ethanol blending target and support for domestic biofuel production. The Indian government is encouraging the growth of ethanol production, growth opportunities, and stability for companies in the ethanol industry to make them the best ethanol penny stocks in India.

4. Multibagger Potential

If the fundamentals of the company improve and demand remains higher, investing in the best ethanol Penny Stocks in India is likely to generate multibagger returns for long-term investors.

5. Sugarcane Prices

Sine Sugarcane plays a vital role in ethanol production; if the price fluctuates, it can directly impact the company’s profitability. Select the best ethanol penny stocks list to generate higher returns in the upcoming years.  

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Best Ethanol Penny Stocks in India with 1-Week Returns

Explore the best Ethanol Penny stocks in India or the ethanol penny stocks list with the past 1-week returns. 

Disclaimer: Please be aware that investing in the best ethanol penny stocks in India carries inherent risks due to volatile market conditions and low liquidity. It is recommended that you conduct your own research on the top ethanol penny stocks in India to make an informed investment decision about which ethanol penny stocks list are the best.

Risk on Ethanol Penny stocks in India

Here are the significant risks associated with the best ethanol penny stocks in India that may impact your investing experience in 2026. Consider these risks and frame a mitigation strategy to avoid significant losses in the Indian stock market. 

1. High Price Volatility 

The best ethanol penny stocks in India show greater volatility in their share prices. Investors in the best ethanol penny stocks India has to offer are likely to see sharp rises and falls due to prevailing sentiment in the Indian economy.

2. Low Liquidity 

 Many small-cap ethanol companies have limited trading activity, making it difficult for investors to buy and sell large quantities without impacting the stock price. Select the best ethanol penny stocks in India that deliver multibagger returns in the upcoming years.

3. Policy and Regulatory Risk

The top ethanol penny stocks in India and the sector are dependent on the government policies, such as the blending target, procurement prices, and subsidies. Any government policy changes directly impact the company’s revenues. Select from the best ethanol penny stocks list that have higher returns, also backed by the government.

4.   High Debt Levels

Some of the best ethanol penny stocks in India may carry significant debt due to capacity expansion. Weak cash flows and rising interest rates may increase financial stress. Select the top ethanol penny stocks in India that offer a reasonable interest rate and a low cost of debt.

5. Market Competitions

The threat of new ethanol producers entering the industry and, therefore, competition, which may result in lower profit margins, is pertinent, especially with reference to the top ethanol penny stocks in India.

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How to Invest in the Best Ethanol Penny Stocks in 2026?

Here is the step-by-step guide for investing in the best Ethanol Penny stocks in India. 

• Step 1: Research the top ethanol Penny stocks in India for 2026, considering their financial and fundamental parameters. 
• Step 2: Select the ethanol Penny stocks list to diversify your investment portfolio. 
• Step 3: Open a demat account with Univest, navigate to the search section, and look for the selected best ethanol penny stocks for long-term investment. 
• Step 4: Place a buy order for the best ethanol Penny stocks in India and the ethanol penny stocks list, and execute it to invest successfully. 
• Step 5: Track your returns in the portfolio section and wait for the right time to book returns.

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Conclusions

Good investment opportunities exist in the ethanol sector of India, especially in light of the country’s growing emphasis on alternative forms of energy and reducing dependence upon fossil fuels. Select the best ethanol penny stocks list to know which stocks give the highest returns in the upcoming years. Investors searching for the best ethanol penny stocks for multibagger returns often focus on companies with strong capacity expansion plans, improving financials, and government policy support.

Before investing in the best ethanol penny stocks in India that are listed on the Indian stock markets, it is important that one understands the various factors that influence the market. Moreover, seeking the opinion of a financial expert to help one invest in the best ethanol penny stocks in India that offer the highest returns on investment will be a good move.

The above-mentioned top ethanol penny stocks will help investors achieve higher returns amid India’s upcoming stock market trends. The top ethanol penny stocks in India for 2026, which are already present globally, will help investors to fetch multibagger returns in the coming years.

FAQs on Ethanol Penny Stocks

Which Stock is Best for Ethanol?

Ans Best Ethanol Penny Stocks in India

Is diversification important when investing in Ethanol penny stocks?

Ans: Yes, diversification is important when investing in ethanol penny stocks. While ethanol penny stocks offer the potential for returns, spread your investments across different sectors to manage risk. 

How do changes in government policies and regulations affect Ethanol penny stocks?

Ans Government policies can affect the ethanol penny stock performance considerably. If the policies are favourable, the performance of the ethanol sector may be enhanced, whereas the performance may also be reduced due to unfavourable policies, causing the ethanol penny stock performance to worsen.

Which stocks is best for ethanol?

Ans: Here are the top ethanol penny stocks in India

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