BackMultibagger sugar stock climbs to new 52-week high despite weak markets
Multibagger stock: Renuka Sugars share price has given fresh breakout above ₹50 apiece levels on closing basis, say stock market experts
PremiumMultibagger stock: Despite weakness in stock market sentiments, Renuka Sugars shares have remained one of the favourite segment for bulls. In last two trade sessions, this multibagger sugar stock has shot up from ₹51.25 to ₹63.20 apiece levels, its new 52-week high and logged around 23 per cent rise in just two trade sessions. Renuka Sugars shares have been giving stellar return to its shareholders in recent session as it has delivered around 70 per cent return to its stock investors in last one month.
According to stock market experts, Sugar stocks are fundamentally strong due to recent Ethanol blending policy announced by the Government of India. It is expected to create an avenue for revenue for sugar milling companies. However, from technical perspective, Renuka Sugars share price has given fresh breakout above ₹50 apiece levels on closing basis and hence, the stock is looking strong from both technical and fundamental perspective.
Highlighting upon the reason for such strong rally in Renuka Sugar share price; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "Sugar stocks are trending due to the Ethanol Blending Policy of the government, rising crude oil prices and other commodity prices have compelled government to raise ethanol blending target from existing 7% to 8% to 20%. There is a supply dearth of ethanol in India currently, thus creating a great opportunity for sugar companies. Sugar prices have soared a lot these days; hence these two factors have changed the fortunes of Sugar companies, explaining the rise in investor’s interest in sugar stocks."
Highlighting on Renuka Sugars shar price chart pattern; Anuj Gupta, Vice President — Research at IIFL Securities said, "Renuka Sugar shares have given fresh breakout above ₹50 apiece levels on closing basis. That's why the stocks has been rallying for last two days. As Government of India haws announced in Ethanol blending policy to raise its ethanol blending in petrol and diesel from existing 7-8 per cent to more than 20 per cent, Renuka Sugars and other sugar companies are expected to report strong quarterly numbers in long term."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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