Multibagger sugar stock climbs to new 52-week high despite weak markets

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Multibagger stock: Despite weak market sentiment, Renuka Sugars shares remained one of the bulls’ favorite segments. Over the past two trading sessions, this multibagger sugar stock has gone from 51.25 to 63.20 levels each, its new 52-week high and registered an increase of around 23% in just two trading sessions. Renuka Sugars shares have performed exceptionally well for its shareholders over the past session, as it has provided around 70% returns to its equity investors over the past month.

According to stock market experts, sugar stocks are fundamentally strong due to the recent ethanol blending policy announced by the Indian government. It is expected to create a revenue stream for sugar companies. However, from a technical point of view, the Renuka Sugars share price gave a new break above 50 levels each at the close and as a result the stock looks technically and fundamentally strong.

Highlighting the reason for such a sharp rise in Renuka Sugar’s share price; Santosh Meena, Head of Research at Swastika Investmart Ltd, said: “Sugar stocks are moving due to the government’s ethanol blending policy, rising prices of crude oil and other raw materials have forced the government to raise the ethanol blending target from 7% to 8% to 20%. There is currently a shortage of ethanol supply in India, thus creating a great opportunity for sugar companies. Sugar prices have gone up a lot these days; hence these two factors have changed the fortunes of sugar companies, explaining the increase in investment by investors. interest in sugar stocks.

Renuka Sugars share price chart template highlighting; Anuj Gupta, Vice President – Research at IIFL Securities, said: “Renuka Sugar shares have given a new breakthrough above 50 levels each at closing. This is why stocks have rallied over the past two days. As the Indian government announced in its Ethanol Blending Policy to increase its blend of ethanol in gasoline and diesel from 7-8% to over 20%, Renuka Sugars and other sugar companies are expected to release strong long-term quarterly numbers. “

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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