This Smallcap sugar stock which deals in the business of manufacturing and refining sugar, ethanol, ethyl alcohol, generation, and power sales was in focus after the company received approval NCLT approved the merger of its wholly subsidiaries with Shree Renuka Sugars.
Price Action
With a market capitalization of Rs. 9,188 Crores, the shares of Shree Renuka Sugars Limited were up by 1.15 percent in the day’s trade touching a day’s high of Rs. 43.61 per share. The stock reiterated from the day’s high and was trading at Rs. 43.20 per share which is 1.01 percent higher than the previous closing price of Rs. 42.77 apiece. The stock has delivered a negative return of 9 percent which has underperformed the Nifty Index.
What Happened
The company has updated on the merger news. Shree Renuka Sugars received approval from NCLT for the scheme of merger effective from 6th December 2024 which is in consecutive approval from the Registrar of Companies. The merger of companies are Monica Trading Private Limited, Shree Renuka Agri Ventures Limited, and Shree Renuka Tunaport Private Limited with Shree Renuka Sugars Limited.
About the Company
Shree Renuka Sugars is India’s largest sugar refiner and ethanol producer which is headquartered in Mumbai. They operate eight sugar mills across sugarcane regions in India. They have a refining capacity of 4,000 tons per day and a distillery capacity of 600 kilolitres per day.
Their business model integrates with sugar production, ethanol manufacturing, and power generation from bagasse while promoting sustainability through cogeneration. Renuka Sugars also exports refined sugar globally and is a contributor to India’s ethanol-blending program while positioning itself as a leader in the agribusiness and bio-energy sectors.
Financials & Ratios
Its Revenue from operations grew by 0.43 percent year on year from Rs. 2,555 Crores in Q2FY24 to Rs. 2,566 Crores in Q2FY25, accompanied by losses of Rs. 206 Crores to a loss of Rs. 23 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 10.20 percent. The net profit margin stood at -5.54 percent and the current ratio stood at 0.65 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 62.48 percent in Shree Renuka Sugars, Foreign Institutional Investors (FII) holding around 4.25 percent, Domestic Institutional Investors (DII) holding around 10.12 percent, and public holdings standing at 23.15 percent.
Written by Santhosh S
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