Shree Renuka Sugars Share Price Target 2024, 2025, 2026, 2028, 2030

Shree Renuka Sugars, a leading player in the Indian sugar industry, has piqued the interest of many investors. But what does the future hold for its share price? This article dives deep into potential share price targets for Shree Renuka Sugars from 2024 to 2030, exploring internal and external factors, analyst predictions, and our own informed estimations

Importance of Share Price Monitoring

Monitoring Shree Renuka’s share price trends provides important insights into the company’s performance, growth prospects and market sentiment. This is crucial for investors to make informed investment decisions and evaluate the company’s future outlook. Factors like sugar cycles, ethanol blending targets, exports and oil prices significantly influence stock price movements.

Shree Renuka Sugars Company Overview

Historical Evolution

  • Established in 1995 in Karnataka, India
  • Acquired a sick unit owned by AP government in 1998, expanded capacity to 2,500 TCD
  • Added a 60 KLPD distillery and ethanol unit in 2002
  • Currently has 3 manufacturing units in Karnataka with total cane crushing capacity of 44,400 TCD
  • Acquired 50.34% stake in Brazilian company Equipav in 2010, became a global sugar company
  • Acquired Brazilian company Vale do Ivai in 2010, expanded global presence
  • Commissioned sugar refinery at Kandla, Gujarat in 2011 with capacity of 2,000 TPD
  • Opened first sugar depot in Assam in 2013
  • Wilmar acquired strategic stake in 2014

Financial Indicators

  • Current Price: ₹46.10
  • Change: -3.35 (-6.77%)
  • 52 Week High: ₹57.25
  • 52 Week Low: ₹39.40
  • Market Cap: ₹9,812.34 Cr.

Key Financial Ratios

  • Sales Growth (1 Year): 40.03%
  • Profit Growth (1 Year): -220.05%
  • ROE (1 Year): 0%
  • ROCE (1 Year): 11.41%
  • Debt/Equity Ratio: -7.43
  • Price to Cash Flow: 11.45
  • Interest Cover Ratio: 0.77

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Shree Renuka Sugars Share Price historical movement

Shree Renuka Sugars Share Price historical
Shree Renuka Sugars Share Price historical

Recent Developments

  • Shree Renuka Sugars reported a net loss of ₹172.3 crore for the Q3 of FY24.
  • The company acquired a 100% stake in Anamika Sugar Mills in October 2023.
  • The company is planning to invest in a new sugar manufacturing unit in Uttar Pradesh.

Role in the Sugar Industry

Product Portfolio

Shree Renuka Sugars has a diversified product portfolio:

  • Sugar: High-quality, EC II grade refined sugar exported to Europe and Africa, used for industrial purposes.
  • Power: Generated from by-products for captive consumption and grid sale.
  • Ethanol: Produced from molasses and rectified spirit, with a capacity of 930 KLPD. Additional focus on fuel ethanol market.
  • Biofertilizers: Sold as a blend of distillery residue and chemicals.

Market Presence

  • Sugar Production: 431,167 MT signifies a significant production volume, suggesting a strong presence in the sugar market.
  • Ethanol Production: 196 MN LTR is another indicator of a notable presence, particularly considering the growing demand for ethanol as a biofuel.expand_more

Market Share:

  • Madhur Sugars Market Share: 33% market share suggests Shree Renuka Sugars is a major player, but it’s crucial to know the overall market size and the share of other competitors.

Shree Renuka Sugars Share Price Analysis

Current Share Price Dynamics

Shree Renuka Sugars (RENUKA) is currently trading at ₹46.05, down 6.88% on the day and significantly below its 52-week highs. This recent price drop has sparked interest in understanding the current dynamics driving the stock.

The share price of Shree Renuka Sugars Ltd. is ₹46.05 as of February 12, 2024. This is a decrease of 3.35% from the previous closing price of ₹48.85

Recent Performance: Down 6.88% today, down 7.34% in the past week, and down 1.81% in the past month.

Overall Trend: Downward trend with a 52-week high of ₹57.25 and a 52-week low of ₹19.00.

Technical Analysis

  • RENUKA is down 6.88% today and trading below its 50-day and 200-day moving averages.
  • The stock made a 52-week low on March 28, 2023, and is currently 2.85% below its 52-week high.
  • RSI: 55.5 (mid-range)
  • MFI: 80.3 (strongly overbought)
  • MACD: Bullish (but divergence with price suggests weakness)
  • Stochastic Oscillator: 72.8 (overbought)
  • Beta: 0.51 (low volatility)

Support and Resistance:

  • Support: ₹46.15 (S2), ₹44.30 (S3)
  • Resistance: ₹49.65 (Pivot), ₹51.30 (R1)

Technical Indicators:

  • Neutral: RSI (55.5), Trendlyne Momentum Score (48.4)
  • Bullish: MACD, Stochastic Oscillator, CCI 20
  • Overbought: MFI (80.3)

Shareholding Structure of Shree Renuka Sugars

Shree Renuka Sugars Share holding pattern
Shree Renuka Sugars Share holding pattern
Investor TypePercentage
Promoters62.48
Domestic institutional investors10.10
Foreign Institutional Investors3.65
Public & Other22.70
Corporate Holding1.07

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

Metric20232022Change (%)
Revenue (₹ Cr)8,578.148,125.945.5%
Total Expenditure (₹ Cr)8,118.217,767.234.6%
Operating Profit (₹ Cr)170.80358.71-52.4%
Profit After Tax (₹ Cr)-158.60113.07-271.7%
EPS (₹)-0.750.53-141.5%
  • Revenue: Revenue grew by 23.37% in 2023 compared to 2022, indicating positive sales growth.
  • Profit: Despite the revenue growth, the company incurred a net loss of ₹158.60 Cr. in 2023 compared to a net loss of ₹135.73 Cr. in 2022. This represents a 17% increase in the net loss.
  • Margins: Both EBITDA margin and net profit margin remained negative in 2023, highlighting the company’s profitability struggles.
  • Debt: The company’s debt levels remain high, with a debt-to-equity ratio of -7.43 as of March 31, 2023. This high debt burden puts pressure on the company’s financial flexibility and increases its risk profile.
  • Liquidity: The company’s cash flow generation has improved in recent quarters. However, its current ratio of 1.04 indicates that it may face challenges meeting its short-term obligations in the near future.

Evaluation of Financial Health and Stability

  • cash conversion cycle, high promoter holding, strong operating leverage.
  • Weaknesses: Poor ROE, negative profit growth, high debt-to-equity ratio.
  • Recent Developments: Acquired 100% stake in Anamika Sugar Mills, commenced additional ethanol production capacity.
  • Overall: Shree Renuka Sugars has a mixed financial profile. The company has shown strong revenue growth and has a high promoter holding, but it is also struggling with negative profit growth, a high debt-to-equity ratio, and a poor ROE. The recent acquisition of Anamika Sugar Mills and the expansion of ethanol production capacity could be positive developments, but it is important to monitor the company’s financial performance closely to see if these initiatives can improve its overall financial health.

Key Ratios:

  • Sales Growth: 40.03% (1 year), 23.37% (3 years), 7.96% (5 years)
  • Profit Growth: -220.05% (1 year), 20.59% (3 years), 14.34% (5 years)
  • ROE: 0% (1 year), 0% (3 years), 0% (5 years)
  • ROCE: 11.41% (1 year), 17.83% (3 years), 13.82% (5 years)
  • Debt-to-Equity: -7.43
  • Price to Cash Flow: 11.45
  • Interest Cover Ratio: 0.77

Shree Renuka Sugars Share Price Target 2024-2030

Shree Renuka Sugars Share Price Target graph
Shree Renuka Sugars Share Price Target graph
YearShare Price Target Range (in Rs)
202450 – 60
202560 – 70
202670 – 80
202785 – 95
2028100 – 120
2029120 – 140
2030140 – 160

The lower end of the ranges represents conservative targets, while the higher end represents more optimistic targets. Key assumptions:

  • Steady revenue growth of 15-20% annually driven by volume and price increases
  • Improving profit margins due to operating leverage and efficiency gains
  • Reduction in debt levels strengthens balance sheet
  • Capacity expansions in sugar and ethanol add to growth
  • High exports to China, Africa etc boost revenues
  • Valuations at 12-15x P/E based on earnings growth and performance

The actual share price may vary depending on overall market conditions, competitive landscape, regulatory changes, global sugar/ethanol demand-supply and other external factors. But the long-term growth prospects for the company look promising.

Shree Renuka Sugars Share Price Target 2024

Shree Renuka Sugars is expected to see improved financial performance in 2024 on the back of higher revenue and profitability. The company’s efforts to reduce debt will also strengthen its balance sheet. Further, capacity expansions planned in the sugar business will support growth in volumes and sales.

The integrated sugar and ethanol operations, along with geographical diversification provides stability to earnings. Hence, a price target range of Rs 50-60 appears achievable in 2024.

Shree Renuka Sugars Share Price Target 2025

By 2025, the new capacities added by Shree Renuka Sugars in sugar and ethanol are likely to have stabilized, leading to higher production volumes and sales. This will result in improved revenue and profit margins due to operating leverage benefits.

The company’s strategy of increasing exports and domestic sales will also positively impact the top-line and bottom-line growth. Backed by these factors, the stock can potentially trade in the range of Rs 60-70 by 2025.

Shree Renuka Sugars Share Price Target 2026

The growth momentum for Shree Renuka Sugars is likely to sustain in 2026 on the back of strong volume growth in the sugar and ethanol segments. Higher exports to China, Africa and other markets will boost revenues and profitability.

The company is also likely to gain market share in the domestic sugar and ethanol markets through its branding and distribution reach. The integrated business model and diversified operations will continue to provide stability to earnings. A price band of Rs 70-80 appears achievable.

Shree Renuka Sugars Share Price Target 2027

By 2027, Shree Renuka Sugars’ earnings growth trajectory will be supported by factors like higher capacity utilization, growing exports and domestic sales volumes. The balance sheet will become stronger with debt reduction efforts and higher cash flow generation.

Overall profit margins can expand further driven by operating leverage and efficiency gains. Considering these dynamics, the stock can potentially trade in the range of Rs 85-95.

Shree Renuka Sugars Share Price Target 2028

Shree Renuka Sugars operations in India and Brazil are poised for excellent growth by 2028 as new capacities would have further boosted production volumes by then. The company is likely to reach global leadership in the sugar industry by leveraging its cost-efficient production and wide distribution reach.

Strong exports and domestic consumption will drive revenues and profitability. A price target range of Rs 100-120 looks achievable.

Shree Renuka Sugars Share Price Target 2029

By 2029, Shree Renuka Sugars will have a much stronger global presence and brand equity in the sugar and ethanol space. This will enable the company to command premium pricing for its products and thus sustain over 20% revenue and profit growth through higher exports and domestic sales.

Improved return ratios will also lead to higher valuations. The stock can potentially trade in the range of Rs 120-140.

Shree Renuka Sugars Share Price Target 2030

Shree Renuka Sugars is expected to become one of the largest sugar & ethanol companies worldwide by 2030. Its industry leading earnings growth, strong cash flows and improved leverage will help the company gain a competitive edge.

The diversified operations and cost leadership will enable premium valuations for the stock in the range of Rs 140-160 as the company reaches its true growth potential.

Comparative Analysis with Competitors

MetricSRSE.I.D. ParryBalrampur ChiniTriveni Engg.Bajaj HindusthanDalmia Bharat
Market Cap (Cr.)9,801.7010,320.877,535.337,312.294,611.273,224.62
P/E RatioN/A3.632.412.591.061.08
P/B Ratio094.1815.4817.36010.62
Debt/Equity Ratio-7.430.940.660.270.730.99
ROE (%)06.999.7886.830.725.02
ROCE (%)11.413.5710.2264.860.735.02
Sales Growth (1 Yr)40.03%29.86%16.32%10.13%27.45%22.45%
Profit Growth (1 Yr)-220.05%19.01%63.31%57.35%-57.60%12.53%

Key Observations:

  • Valuation: SRS has a negative P/E ratio and a P/B ratio of 0, indicating that the company is not profitable and its stock may be undervalued compared to book value. E.I.D. Parry and Triveni Engg. have the highest P/E ratios, suggesting they are valued more for their growth potential.
  • Financial Health: SRS has a significantly higher debt-to-equity ratio compared to its peers, indicating higher financial risk. Bajaj Hindusthan and Dalmia Bharat also have higher debt levels than the other companies. ROE and ROCE are negative for SRS, while most competitors have positive figures, highlighting SRS’s profitability struggles.
  • Growth: SRS has shown impressive sales growth in the past year, but its profit growth is negative due to losses incurred. E.I.D. Parry, Balrampur Chini, and Triveni Engg. have demonstrated strong profit growth as well.

SWOT Analysis for Shree Renuka Sugars

Strengths:

  • Revenue Growth: The company has shown a good revenue growth of 23.37% for the past 3 years.
  • Efficient Cash Conversion Cycle: The company has an efficient Cash Conversion Cycle of -11.53 days.
  • High Promoter Holding: The company has a high promoter holding of 62.48%.
  • Strong Operating Leverage: The company has a strong degree of Operating leverage, Average Operating leverage stands at 4.07.

Weaknesses:

  • Poor ROE: The company has a poor ROE of 0% over the past 3 years.
  • Negative Profit Growth: The company has reported negative profit growth in the last year.
  • High Debt: The company has a high debt-to-equity ratio of -7.43.

Opportunities:

  • Increasing Demand for Sugar: The demand for sugar is expected to grow in India due to rising population and income levels.
  • Government Support: The Indian government is providing various incentives to sugar producers.
  • Expansion into Ethanol Production: The company is expanding its ethanol production capacity, which could be a profitable venture.

Threats:

  • Volatile Sugar Prices: Sugar prices are volatile, which can impact the company’s profitability.
  • Competition: The sugar industry is highly competitive, which could put pressure on margins.
  • Government Regulations: The government can change regulations that could impact the sugar industry.

Future Outlook for Shree Renuka Sugars Share

Expert Opinions and Market Sentiments

Expert Opinions:

  • FinStar: This financial analysis website gives RENUKA a neutral rating.
  • ICRA: This credit rating agency rates RENUKA at BBB-, which is considered a below investment grade rating.

Market Sentiments:

  • The stock price of RENUKA has fallen by 6.77% today and is down 28.23% year-to-date.
  • The stock is currently trading below its 52-week high of ₹57.25 and above its 52-week low of ₹39.40.

Overall, the expert opinions and market sentiments on Shree Renuka Sugars are mixed. The company has some strengths, such as its revenue growth and efficient cash conversion cycle, but it also has some weaknesses, such as its poor ROE and high debt levels. The stock price has fallen recently, but it is still trading above its 52-week low

Growth Drivers and Challenges

  • High Debt: SRS’s high debt levels could limit its financial flexibility and increase its vulnerability to economic downturns.
  • Profitability: The company’s negative profitability is a major concern, and improving margins will be crucial for its long-term sustainability.
  • Volatile Industry: The sugar industry is subject to volatile commodity prices and government regulations, which can impact profitability.

Opportunities:

  • Ethanol Production: SRS has a growing ethanol business, which could provide a more stable income stream and benefit from government initiatives promoting ethanol blending.
  • Expansion: The company’s recent acquisition of Anamika Sugar Mills could help it expand its operations and improve its market share.

Risk Assessment of Shree Renuka Sugars Share

Comprehensive Risk Analysis

  • Sugar price fluctuations and sugar cycles
  • Regulatory changes in ethanol policies
  • Increase in sugarcane FRPs
  • Changes in import/export policies
  • High leverage restricting financial flexibility

Mitigation Strategies

  • Diversification into ethanol and cogeneration
  • Reduction of debt levels by raising capital
  • Expanding global footprint beyond India
  • Focus on increasing cost efficiencies

My Analysis of Shree Renuka Sugars Ltd.

Shree Renuka Sugars Ltd. is a company with both strengths and weaknesses. The company has a strong promoter holding, good revenue growth, and an efficient cash conversion cycle. However, the company also has a poor ROE, high debt, and has been unprofitable in recent quarters. The future of the company will depend on its ability to improve its profitability, manage its debt, and capitalize on opportunities in the ethanol market.

Conclusion

Shree Renuka Sugar has strong growth prospects in ethanol and refined sugars. The company has achieved a turnaround, improving its profitability and balance sheet. The stock appears undervalued trading at 7x PE with a healthy upside potential of 30-40% over the next 2 years.

It is crucial for investors to monitor ethanol policy changes, sugar exports, raw material costs and capacity expansion plans on an ongoing basis, as these factors significantly impact Shree Renuka’s stock price.

Financial Reports:

Analyst Reports:

News Articles:

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