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Invest In These Edible Oil Stocks To Get Good Return

Invest In These Edible Oil Stocks To Get Good Return
Written by Arindam
Invest In These Edible Oil Stocks To Get Good Return

Multibagger Stocks: Indonesia has banned its export to control the rising prices of palm oil in the country. This may rein in the rising prices of palm oil in Indonesia, but its reverse effect can be seen in India.

The Indonesian government has taken this step to avoid the shortage of palm oil in its domestic market. However, India is the largest importer of palm oil. According to the news, it is being speculated that the edible oil manufacturing industry in India will benefit from the current situation.

What will be the benefit?

The ban on the export of palm oil from Indonesia can increase the price of all edible oils like sunflower, mustard oil, soya oil. With this, Indian edible oil companies can make a big profit on their unsold inventory.

Marico- Marico is the country’s leading consumer goods company. Its product portfolio includes coconut oil, hair oil, edible oil and men’s grooming products. Edible oils account for 66 percent of the company’s total earnings. Marico’s edible oil brand Saffola has 83% market share in the super premium refined segment. In the current market conditions, Marico will see a big advantage.

Ruchi Soya- Ruchi Soya is a big name in the business of edible oils. Apart from this, it is also the country’s largest palm oil plantation company. Ruchi Soya has 22 units across the country. Ruchi Gold, Nutrela, Sunrich and Mahakosh are well known brands of the company.

Agro Tech Foods- Agrotech Foods is a well-known name in the Edible Oils and Branded Foods business. The major part of the company’s income comes from edible oil. The company sells its products under brand names like Sundrop and Act-II. About 60 per cent of Agrotech Food’s revenue comes from the business of cooking oil. The company’s market share in the edible oil market is 13.8 percent.

Gokul Agro Resources- Gokul Agro Resource Company, along with making edible oil, also manufactures non-edible oils and other related products. It is also involved in diversified business like food grains, spices, oilseeds, feed. Vitalife, Makeh, Zaika, Pride and Puffpride are well known brands of Gokul Agro. The company has a seed processing capacity of 3200 tonnes per day and oil refining capacity of 3,400 tonnes per day.

Adani Wilmar- Adani Wilmar is a well-known FMCG company in the country, which is in the business of edible oil, flour, rice, pulses and sugar. Edible oil accounts for 65 per cent of the company’s income. The company sells edible oils under the Fortune brand.

Indonesia’s move may put an end to the rise in palm oil prices there, but its reverse effect can be seen in India. In India, due to the increase in the prices of palm oil as well as other edible oils, the companies here are likely to benefit.

Benefits of government steps

At the same time, the Government of India has announced a national mission like Edible Oil-Oil Palm in the country so that the production of palm oil can increase in the country and the dependence on import can be reduced. With this mission, new opportunities will come for the country’s edible oil companies. In such a situation, edible oil stocks can be a better bet from the medium to long term point of view.

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Arindam

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