Shree Renuka Sugar is a leading sugar manufacturer in India. The company has the largest market cap of Rs 9,312.14 crores which makes it first on the list of top 10 sugar companies in India. But what will be Shree Renuka Sugar share price target in 2023, 2024, 2025 and up to 2030? Let us find it out after performing a detailed analysis of the company.
What does Renuka Sugar do?
Renuka Sugar is in the business of agriculture and bio-energy. The corporation produces sugar, ethanol, power, and organic manure. They have sugar mills and refineries in India and Brazil, and they export their products to countries all over the world.
Renuka Sugar’s sugar mills use sugarcane to produce white refined sugar, which is sold in both domestic and international markets.
They also produce ethanol, which is a type of alcohol that can be blended with gasoline to create a cleaner-burning fuel. Renuka Sugar’s power plants use bagasse, a byproduct of sugarcane production, to generate electricity.
This electricity is used to power the company’s operations, and it is also sold to the grid. Renuka Sugar also produces organic manure from the residue of its distillery operations. This manure is used to fertilize crops, which helps to improve soil health and productivity.
What is current share price of Renuka Sugar?
Renuka Sugar is trading at Rs 44.25 currently. The share is 11.80% up from its 52 Week low price of Rs 39.40. Its 52Week high price is Rs 68.75, which was achieved in Oct 2022.
Expected Share Price of Renuka Sugar in 2023
Let’s start by analyzing the company’s net sales figures. Over the past year, Shree Renuka Sugars has experienced some fluctuations in its revenue stream.
In the most recent quarter, ending March 2023, the company recorded net sales of ₹2,045.40 crore. Although this represents a slight decline from the previous quarter, it is important to note that the sugar industry is subject to various factors that can impact sales, such as weather conditions, market demand, and pricing fluctuations.
In 2023 share price target of Shree Renuka sugar is expected to be in between Rs 34.51 to 52.56.
Renuka Sugar Short-term targets for 2023
| Level | Support | Resistance |
|---|---|---|
| Level 1 | 40.64 | 45.56 |
| Level 2 | 39.06 | 47.26 |
| Level 3 | 37.51 | 49.00 |
| Level 4 | 36.00 | 50.76 |
| Level 5 | 34.51 | 52.56 |
The minimum expected target for Renuka sugar for the short term in 2023 is Rs 45.56, and the maximum target is Rs 52.56, which is expected to reach by Dec 2023.
Renuka Sugar share price target 2024
As per Gann’s analysis the share price of Renuka Sugar’s will be in range of 52.56 as minimun target and 68.70 as maximum target.
Examining the profitability of the company, we find that Shree Renuka Sugars faced certain challenges in terms of operating profit. In the December 2022 quarter, the company managed to achieve an operating profit of ₹190.70 crore, showcasing a significant improvement.
However, in some quarters, it reported losses before taxes, such as the June 2022 quarter when it recorded a loss of ₹103.40 crore. It is crucial to understand that the sugar industry is known for its cyclical nature, and companies within this sector may experience fluctuations in profitability.
Renuka Sugar share price target 2025
The minimum share price target for Renuka Sugar for the year 2025 is ₹70 and the maximum target is ₹86.60.
To gain a comprehensive understanding, we need to consider the company’s total expenditure. Shree Renuka Sugars caitiously manages its costs which helps them optimize operational efficiency. In the most recent quarter, the company’s total expenditure amounted to ₹1,810 crore, demonstrating its commitment to cost control.
Effective management of expenditures is crucial for maintaining profitability. Before investing in any company for the long term, we must ensure that it is efficient in managing its finances.
As the company is conservative regarding its cash flow, investors gain more confidence in investing for long term.
Renuka Sugar's share price target upto 2030
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2023 | ₹45.65 | ₹50.76 |
| 2024 | ₹52.65 | ₹68.70 |
| 2025 | ₹70 | ₹86.60 |
| 2026 | ₹89 | ₹106.15 |
| 2027 | ₹115.75 | ₹133.75 |
| 2028 | ₹146.60 | ₹162.90 |
| 2029 | ₹180.90 | ₹193.75 |
| 2030 | ₹200 | ₹239.20 |
Shree Renuka Sugar’s share price target can reach up to ₹239.20 by the year 2030. Being a market leader, the company is expected to grow steadily in the coming years. In 2027 the stock might face resistance near ₹ 120.
Renuka Sugar's Financial Statements
| PARTICULARS | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 |
|---|---|---|---|---|---|
| Share Capital | 191.68 | 191.68 | 191.68 | 212.85 | 212.85 |
| Total Reserves | 699.86 | 354.77 | -311.76 | 2.76 | 334.14 |
| Borrowings | 2,101.72 | 1,969.13 | 1,668.51 | 2,565.86 | 2,755.61 |
| Other N/C liabilities | -301.92 | -261.40 | -122.60 | 56.39 | 196.14 |
| Current liabilities | 3,527.49 | 4,323.66 | 4,897.92 | 4,202.36 | 3,578.18 |
| Total Liabilities | 6,218.84 | 6,577.83 | 6,323.75 | 7,040.21 | 7,076.92 |
| Net Block | 3,861.27 | 3,801.62 | 3,695.33 | 3,605.08 | 3,822.47 |
| Capital WIP | 26.92 | 100.35 | 151.89 | 9.16 | 239.30 |
| Investments | 126.14 | 108.63 | 103.93 | 137.59 | 120.22 |
| Loans & Advances | 89.25 | 291.60 | 262.66 | 254 | 277.67 |
| Other N/C Assets | 121.15 | 112.19 | 0 | 0 | 4.67 |
| Current Assets | 1,994.11 | 2,163.45 | 2,109.95 | 3,034.39 | 2,612.59 |
| Total Assets | 6,218.84 | 6,577.83 | 6,323.75 | 7,040.21 | 7,076.92 |
What is the financial performance of Renuka Sugar?
When evaluating a company’s financial health, it is important to assess its balance sheet. Shree Renuka Sugars has maintained a stable equity and liabilities structure, with fluctuations primarily observed in borrowings and current liabilities.
The company’s net block value, which represents its fixed assets, increased from ₹3,605.08 crore in March 2021 to ₹3,822.47 crore in March 2022. This indicates the company’s commitment to investing in its infrastructure and supporting future growth.
What is the historical share price performance of Renuka Sugar?
Renuka Sugar’s share price history shows significant fluctuations over the years. The market cap experienced a remarkable 92.78% change during the analyzed period. Let’s take a look at the yearly changes and notable instances of rapid price fluctuations.
In January 2023, the share price opened at 58.40 and closed at 51.80, indicating a decline during that year. In December 2022, the share price showed some improvement, opening at 58.90 and closing at 58.15.
Notably, in January 2021, the share price opened at 12.20 and quickly rose to 12.90, demonstrating a substantial increase. However, in June 2020, the share price experienced a rapid decline, opening at 14.20 and dropping to 5.05.
The most significant share price increase occurred between November 2011 and January 2012. In November 2011, the share price opened at 57.00 and skyrocketed to 101.90 in January 2012. Throughout the years, Renuka Sugar’s share price has seen both ups and downs, with periods of quick changes and sudden declines.
Renuka Sugar's competitors
| Company Name | Market Cap (Rs. cr) |
|---|---|
| Shree Renuka | 9,229.13 |
| EID Parry | 8,212.85 |
| Balrampur Chini | 7,767.35 |
| Triveni Engg | 6,216.70 |
| Bannariamman | 3,462.46 |
| Dalmia Sugar | 3,021.87 |
| Bajaj Hindusthan | 2,117.86 |
| Dhampur Sugar | 1,791.80 |
| Dwarikesh Sugar | 1,697.54 |
| ANDHRSUGAR | 1,522.06 |
| Ugar Sugar Work | 1,394.44 |
Ugar Sugar Works, EID Parry, and Bajaj Hindusthan Sugar are some of the competitors of Renuka sugar.
Frequently Asked Questions
Is it good to buy Shree Renuka Sugar?
Renuka Sugar has shown a good profit growth of 31.93% for the past 3 years. This indicates growing market for the company which makes ita good company to buy for long term.
Under which brand name does Renuka Sugar sells it product?
Renuka Sugar sells its sugar under the brand name ‘Madhur’ which comes in green-coloured packaging.
Is Renuka Sugar good for future?
Renuka Sugar is top rated sugar company in India with the largest Market Cap. As the craze for carbonated drinks, and sugary food is rising rapidly, in future the share price of Shree Renuka Sugar will keep rising.
What are risks in buying Renuka Sugar?
Following are some of the risks involved in buying Shree Renuka Sugar
- Renuka Sugar has shown a poor revenue growth of 12.55% for the Past 3 years.
- The company has a poor ROE of 0% over the past 3 years.
- Earning per share is negative and the PE ratio is zero.
Conclusion
Shree Renuka Sugars Ltd. has displayed a mixed financial performance in recent quarters. While the company experienced fluctuations in net sales, operating profit, and cash flows, it is important to recognize the cyclical nature of the sugar industry and the various factors that can impact its performance.
The company has demonstrated a commitment to managing its costs and optimizing operational efficiency, as evidenced by its focus on controlling total expenditures. Furthermore, the company has made investments in its infrastructure, as seen in the growth of its net block value, indicating a long-term vision for sustainable growth.
Based on these fundamentals Renuka sugar’s share price target is expected to reach maximum price of ₹50.76 in 2023 and ₹239 in 2030.
Disclaimer : All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. We are not SEBI Registered enteties. These targets are hypothetically predicted based on market condition and may change.
