Home Sugar News Shree Renuka Sugars becomes the most valuable sugar co; up 326% in 3 months

Shree Renuka Sugars becomes the most valuable sugar co; up 326% in 3 months

by upsugartimes

Shree Renuka Sugars became the most valuable sugar producing company in terms of market capitalisation (m-cap) on Thursday after its stock soared over 300 per cent during the past three months. The stock hit an over nine-year high in the intra-day session today and was trading at its highest level since February 2012.

Shree Renuka Sugars, with an m-cap of Rs 8,791 crore at 01:50 pm, surpassed Balrampur Chini Mills and EID Parry (India) that have a market cap of Rs 7,461 crore and Rs 7,390 crore, respectively, the BSE data shows.

Promotion

In the past three months, Shree Renuka Sugars has outperformed the market by zooming 326 per cent, as compared to a 72 per cent rally in Balrampur Chini Mills and 38 per cent surge in the market price of EID Parry stock. In comparison, the S&P BSE Sensex has advanced 5 per cent during the same period.

On June 26, 2021, Shree Renuka Sugars said its board has approved capacity expansion of ethanol production after the government mandated 20 per cent ethanol blending in fuel by 2025 against a current blending of 7.79 per cent. “Considering this, the company sees a huge untapped demand for ethanol for the ethanol blending program of the government which can be of benefit to the Company in the future,” the company said on rationale behind capex plan.

“The board of directors, in their meeting held on February 9, 2021, had approved capacity expansion of ethanol production from 720 Kilo Litre per Day (KLPD) to 970 KLPD. Considering the huge untapped demand for ethanol due to the policies of government, the Board of Directors approved further capacity expansion for ethanol production from 970 KLPD to 1400 KLPD,” Shree Renuka Sugars said in an exchange filing dated June 25.

Promotion

Shree Renuka Sugars Limited is one of the largest sugar manufacturers and refiners in India. As a leading agri-business and bio-energy company, it is present across sugar, ethanol, co-generation, and trading. SRSL is a subsidiary of Wilmar Sugar Holdings Pte Ltd, Singapore (subsidiary of Wilmar International Ltd, Asia’s leading agri-business Group).

While announcing March 2021 quarter (Q4FY21) results on June 25, Shree Renuka Sugars had also said the board of directors of Wilmar Sugar Holdings Pte. Ltd. have provided letter of support to the company to meet shortfall in its normal trade related working capital requirements up to the year ending March 31, 2022.

Accordingly, the company’s management believes it will be able to meet all its financial obligations on a timely basis and, hence, the company has prepared the financial results on going-concern basis, it said.

Promotion
close

Get Weekly News Email !

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept

Privacy & Cookies Policy
error: Content is protected !
%d bloggers like this: