Sugar stock climbs to 52-week high after giving 115% YTD return. Do you own? | Mint
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Business News/ Markets / Stock Markets/  Sugar stock climbs to 52-week high after giving 115% YTD return. Do you own?
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Sugar stock climbs to 52-week high after giving 115% YTD return. Do you own?

Renuka Sugar share price is rising as the market is expecting better Q2FY23 numbers in the wake of improved sugar exports leading to an additional margin improvement, believe experts

Renuka Sugar share price may go up to ₹80 apiece levels as the stock is looking positive from both fundamental and technical perspective, say experts. (Bloomberg)Premium
Renuka Sugar share price may go up to 80 apiece levels as the stock is looking positive from both fundamental and technical perspective, say experts. (Bloomberg)

Despite heavy sell-off in early morning deals, Renuka Sugar shares have hit 52-week high of 65.15 per share on NSE. Renuka Sugar share price today opened upside and went on to climb to a new 52-week high though sentiments on Dalal Street is bearish.

According to stock market experts, Sugar stocks are in uptrend, especially those who have exposure in export market. They said that India has registered robust 57 per cent rise in sugar exports during October to September business cycle. As Indian National Rupee (INR) is under stress these days, market is expecting some extra improvement in sugar companies margins when they would come up with their quarterly numbers for July to September 2022.

Speaking on the reason for rise in Renuka Sugar share price, Ravi Singhal, CEO at GCL Securities said, "Shree Renuka Sugar shares and other export oriented sugar companies are in uptrend these days due to record sugar export by these companies. As Indian rupee has remained weak for some times, these sugar exporter companies are expected to reap benefit of rupee fall as well. Hence, market is expecting some additional margin improvement in Renuka Sugars Q2FY23 results. That's why the stock is in uptrend."

Expecting Renuka Sugar share price rally to continue, Sumeet Bagadia, Executive Director at Choice Broking said, "Renuka Sugar shares are looking positive on chart pattern. The stock may go up to 75 to 80 per share levels. Positional investors may buy the stock at current levels and keep on accumulating till the stock is trading above 55 apiece levels. However, one must maintain stop loss below 55 while taking fresh position in the counter."

During 2021-22 sugar marketing year ending this September, India's sugar export shot up 57 per cent to 109.8 lakh tonnes, which resulted in foreign currency flow in India to the tune of 40,000 crore. In 2021-22 sugar market year, the Department of Food and Public Distribution, Government of India (GoI), claimed that India has emerged world's largest sugar producer and consumer and the 2nd largest exporter of sugar in the world.

"During SS 2021-22, sugar mills procured sugarcane worth more than 1.18 lakh crore and released payment of more than 1.12 lakh crore with no financial assistance (subsidy) from Government of India. Thus, cane dues at the end of sugar season are less than 6,000 crore indicating that 95 per cent of cane dues have already been cleared. It is also noteworthy that for SS 2020-21, more than 99.9 per cent cane dues are cleared," the ministry claimed.

Renuka Sugar shares are one of the multibagger stocks in 2022 as the stock has surged from around 30 to 65 apiece levels, delivering around 115 per cent in year-to-date (YTD) time.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 10 Oct 2022, 11:43 AM IST
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