Shree Renuka Sugars Share Price

1. For the quarter ended on June 30, 2018, Shree Renuka Sugars Limited reported its standalone total income to be at Rs.967.7 crore, in comparison to Rs.1,617 crore reported for the same quarter of the previous year.
2. As for the expenses, they were reported to be fairly greater than the revenues. The total expenses for the year stood at Rs.1,155.2 crore, as against Rs.1,783.5 crore for the same period last year.
3. Consequently, the sugar company reported a loss of Rs.178.8 crore after taxation. The net loss after tax for the Q1 FY2018 was Rs.191.1 crore.
4. Considering the segment-wise revenue break up, the company's sugar business went down by a little over 25% YoY. Its ethanol business, on the other hand, doubled year-on-year from Rs.63.5 crore to Rs.122.7 crore, as on June 30, 2018. Its trading activities also took a significant hit, going down from Rs.296.8 crore to Rs.6 crore, YoY.

Shree Renuka Sugars Limited Stock Trends in 2018

1. On January 2, 2018, the opening share price of Shree Renuka Sugars Limited was Rs.17.10 on the National Stock Exchange. Over the course of the month, the scrip moved on to lose close to Rs.2 to slip into the Rs.15 region. The closing price of the shares on January 31 was Rs.15.50 on the NSE.
2. In February, things didn't change significantly. The shares were traded at levels close to Rs.15 without incurring any sharp losses. The very same trend was seen in the month of March as well, with the Shree Renuka Sugars Limited stocks retaining their momentum above the Rs.15 mark.
3. The months of April and May were along the same lines. The stock price of Shree Renuka Sugars Limited didn't undergo a lot of variation. The shares gained marginally over the course of these two months to cross the Rs.16 mark. Needless to mention, the stocks were not volatile during this period although, in June, they took a sharp nosedive.
4. Through the first half of June, the shares maintained their buoyancy at levels close to Rs.15. In the second half of the month, the investors went on a selling spree and consequently, the shares lost close to 20% in less than two weeks. Driven by this massive sell-off, the share price, by the end of the month, had descended into the Rs.12 region.
5. In the first week of July, the shares attempted to stabilise at the Rs.12 mark. However, their efforts were in vain as the price plummeted once again in July and this time, the shares hit their 52-week low at Rs.9.60 on the NSE. This low was followed by weeks of volatility. By the end of July, the shares had managed to recover some of their previous losses to reach the Rs.12 mark once again.
6. Through August and most of September, the share price of Shree Renuka Sugars Limited went down in a gradual manner to reach the Rs.11 mark. In mid-September, the shares spiked sharply and the scrip gained as much as 50% to cross the Rs.17 mark again. This meteoric rise was soon followed by another sharp nosedive and consequently, the shares were back to their previous levels at Rs.11. The stocks recovered marginally in October to cross the Rs.13 mark once again.

Shree Renuka Sugars Limited Stock Trends in 2016 and 2017

1. At the start of 2016, the Shree Renuka Sugars Limited stock price was seen varying at levels close to Rs.14. Through the course of January and February, the scrip lost close to 20% to slip into the Rs.12 region. Like many stocks in that period, it wasn't until the month of March that the shares staged a recovery. This rise led to the shares cross the Rs.13 mark.
2. Through most of April and May, the Shree Renuka Sugars Limited shares were traded at levels varying from Rs.13 - Rs.14. While the scrip was fairly volatile, the stocks still managed to stay afloat above the Rs.13 mark. It wasn't until June that the scrip spiked and this time, it gained a little over 30% to cross the Rs.18 region.
3. However, this rise was followed by a period of a sustained bear run through the months of July, August, and September. The scrip moved on to shed gradually in these months. By early October, the stocks had descended back into the Rs.15 region. Post demonetisation in November, the shares took another sharp hit and as a result, they lost close to 10% to slip into the Rs.13 region. The closing price at the end of 2016 was Rs.13.85 on the NSE.
4. The stocks started 2017 on a slightly bearish note. The scrip commenced trading for the year at Rs.14.95 on the NSE. Through the first quarter of the calendar year, the shares lost marginally. The fall was far more noticeable in the months of April and May, with the stocks shedding close to 15% to drop into the Rs.13 region. In July, the share price of Shree Renuka Sugars Limited lost marginally again to touch the Rs.12 mark.
5. However, things took a turn in the month of July when the share price spiked dramatically. In a little over three weeks, the scrip gained close to 55% to cross the psychologically important mark of Rs.20.
6. Once again, the stocks failed to find momentum at those levels. As a result, the share price went down gradually over the months of August and September, with the scrip reaching the Rs.13 mark. However, in the final quarter of the year, the shares gained steadily to cross the Rs.18 mark. In the same period, the scrip hit its 52-week high at Rs.18.85.

Should You Invest in Shree Renuka Sugars Limited?

1. Shree Renuka Sugars Limited is a sugar producer and refiner headquartered in Mumbai, India. It is also engaged in the business of ethanol, organic manure, and power. The company operates in India and Brazil - two of the largest sugarcane producers in the world.
2. For the year ended on March 31, 2018, the company reported its consolidated income from operations to be at Rs.7,954.2 crore - a drop of more than 25% YoY. The profitability of Shree Renuka Sugars Limited was severely impacted on account of a large expenditure for the year. The company reported a net loss of Rs.2,717.5 crore, as against a net loss of Rs.1,165.9 crore for the previous fiscal year.
3. Even for the Q1 FY2018, the company reported a quarterly loss of Rs.191.1 crore. Its debt-equity ratio as on March 31, 2018, was 2.65 - the same for the previous fiscal year was 1.55.
4. Considering the performance of its stock, the scrip has been trading close to Rs.15 mark since 2015. The shares haven't made any noticeable gains in the course of the last three years or so. The price has varied mainly from Rs.12 - Rs.18 and in 2018, the shares have even gone below the Rs.10 mark.
5. From a long-term perspective, the company doesn't make for a good pick. It is under high debt and the company has been reporting losses for the last couple of quarters. While there may be some opportunities for investors during intraday sessions, it is hard to gauge if this scrip will move up in the future. Nonetheless, before investing in this stock, it is strongly recommended that you research thoroughly.

Company Information

Shree Renuka Sugars Limited is a sugar company based in India. It is one of the largest sugar producers and sugar refiners in the world. It operates 11 integrated sugar mills across the world - four in Brazil and seven in India. Being present in two of the largest sugarcane producing countries, Shree Renuka Sugars Limited is able to cater to requirements of international markets. Additionally, the company produces ethanol which is used as a fuel in Brazil while in India, it is used by alcohol, chemical, and oil marketing industries.

History of the Company

The roots of the company can be traced to the year 1998 when Shree Renuka Sugars Limited was founded. The company came into existence after the acquisition of Nizam Sugars Limited in Andhra Pradesh. Over the course of the next couple of years, the company moved on to establish a co-generation plant in Munoli, followed by setting up a distillery and sugar refinery in the same city. The company made its first Initial Public Offer in 2005 and made its debut on the bourses in the same year. In the same year, it established a sugar mill in Athani, Karnataka. This was subsequently followed by strategic acquisitions and establishing new refineries to strengthen its position in the Indian market. In 2010, it entered the South American market by acquiring a 100% stake in Renuka Vale do Ivai S/A and 50.35% stake in Renuka do Brasil S/A.

Management of the Company

Mr. Atul Chaturvedi - Executive Chairman

Mr. Atul Chaturvedi presently serves as the Executive Chairman of Shree Renuka Sugars Limited. He is also associated with the Agri Business of Adani Enterprises Limited - he served as the Chief Executive Officer of the business. In addition to his present responsibilities, he serves as the Managing Director of Adani Logistics Limited and as a Director at Adani Wilmar Limited, Adani Agri Logistics Limited, and Adani Agri Fresh Limited. Additionally, he was also the President of Agro, Adani Exports Limited and Chief Executive Officer of Adani Agro Private Limited. He is well versed with all the aspects of agro business in the country and has more than three decades of experience in handling agro products across multiple geographies. Mr. Chaturvedi finished his post graduation from St. Johns College, Agra University.

Mr. Vijendra Singh - Executive Director

Mr. Vijendra Singh presently serves as the Executive Director of Shree Renuka Sugars Limited. He finished his B.Sc. from Meerut University in 1979 and followed it with a post graduation in Sugar Technology from National Sugar Institute in 1981. He has been a part of the agro-industry for more than 30 years now. Mr. Singh started his career with DCM Shriram Industries Limited as a Management Trainee. Over the years, he rose through the ranks to become the Senior General Manager. His massive experience in the field of agro-business has led him to hold senior positions in several prominent sugar companies in the country. At these organisations, he was responsible for overseeing activities like production, expansion, modernization, et cetera.

Mr. Jean-Luc Bohbot - Non-Executive Director

Mr. Bohbot presently serves as the Non-Executive Director of Shree Renuka Sugars Limited - he has held this position since June 2015. He has also served as the Managing Director of a Europe-based trading company and as the Managing Director of Eagle Trading - a joint venture formed for sugar trading. He has also been associated with the Wilmar Group where he developed the Wilmar Sugar Trading Division. Mr. Bohbot is an alumnus of University of Paris Dauphine, France, where he obtained a post master's degree in Market Finance and Risk Management.

Shree Renuka Sugars Limited Listings in NSE, BSE, and Stock Market Indices

The equity shares of Shree Renuka Sugars Limited are available to the general public for trading. These shares are listed on the country's two prominent stock exchanges - the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective call sign for the same are as follows:

1. NSE Code: RENUKAEQ
2. BSE Code: 532670
3. Sector: Sugar
4. ISIN: INE087H01022

Coming to the stock market indices, the company comprises the following:

1. Nifty 500
2. Nifty Smallcap 250
3. S&P BSE SmallCap
4. S&P BSE MidSmallCap
5. Nifty MidSmallcap 400
6. S&P BSE Fast Moving Consumer Goods

Registered Office

Shree Renuka Sugars Limited

BC 105,

Havelock Road, Camp,

Belgaum - 590001

Karnataka, India

Contact number: +91-831-2404000

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.