Shree Renuka Sugars Ltd. is one of India’s leading sugar manufacturers, involved in the production and marketing of sugar and its by-products. As of October 15, 2024, the Renuka Sugar share price is ₹46.40, reflecting a decrease of 2.05% from the previous trading session. The stock opened at ₹47.00 and has seen a trading volume of over 6.18 million shares so far today.
Renuka Sugar Share Price in Today’s Market
In today’s trading session, the Renuka Sugar share price reached a high of ₹47.47 and a low of ₹46.34. The current market capitalization stands at approximately ₹9,876 crore, underscoring its significant presence in the sugar industry.
Renuka Sugar Financial Overview
Renuka Sugar has an enterprise value of ₹14,280.74 crore and approximately 212.85 crore shares outstanding. The company’s P/E ratio is reported at 0, indicating losses, while its P/B ratio stands at 0, reflecting negative book value due to accumulated losses. Recent financial reports indicate a sales growth rate of 26.28% but a concerning profit growth rate of -312.22%. With cash reserves of ₹39.78 crore and total debt amounting to ₹4,431.56 crore, Renuka Sugar faces significant financial challenges.
Renuka Sugar Share Pros & Cons
Pros:
- Sales Growth: A sales growth rate of 26.28% indicates robust demand for its products despite current challenges.
- High Promoter Holding: With promoter holding at 62.48%, there is strong insider confidence in the company’s long-term prospects.
- No Debt: Although the company has significant debt, it has managed to maintain operations without any new borrowings recently.
Cons:
- Negative Profit Growth: A profit growth rate of -312.22% raises serious concerns regarding operational efficiency and financial health.
- High Beta: A beta of 1.11 indicates that the stock is more volatile than the broader market, which can pose risks for conservative investors.
- Negative Book Value: With a book value (TTM) of -5.62, the company’s financial stability is questionable.
Indiahood Recommendation on Renuka Sugar Share: Buy or Sell?
Considering the current market conditions and the fundamentals surrounding Shree Renuka Sugars Ltd., it is advisable to sell your position if you currently hold shares or to avoid buying until there are clearer signs of recovery in profitability and financial stability.
Conclusion
In summary, while Renuka Sugar’s sales growth may indicate potential for recovery, the severe decline in profitability and negative book value present substantial risks for investors. Caution is advised before making any investment decisions in this stock.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
