The company is the first winner of Group A.
Shree Renuka Sugars Ltd, a small cap sugar stock, hit the upper circuit by 20% today from its previous close of Rs 41.25. The stock opened at Rs 43.60 and made its fresh day high of 52 weeks as well as Rs 49.50. As of 11:50 a.m. today, the stock was trading near Rs 49.05 on BSE. It had rallied even yesterday by more than 10 percent.
While Sensex has plunged for two consecutive days mainly on anticipation of rate hikes, this sugar company has been tilted towards a strong sector outlook. The sugar industry as a whole is trending due to strong exports. In addition, the government has extended the loan disbursement date for national ethanol projects. This extension is part of the increase in ethanol production in the country. For the last quarter ended December, revenue rose 45.12 percent year-on-year to Rs 2,014 crore and net profit rose 130.7 percent year-on-year to Rs 43.3 crore.
Shree Renuka Sugars is a global agribusiness and bioenergy company. The company is one of the largest sugar producers in the world, India’s largest sugar manufacturer and one of the largest sugar refiners in the world. The company makes fuel-grade ethanol that can be blended with gasoline. The company also generates electricity from bagasse (a by-product of sugar cane) for captive consumption and sale to the utility grid in India and Brazil.
The stock has a 52-week high and low of Rs 49.50 and Rs 9.40, respectively.