Shree Renuka Sugars became the most valuable sugar company in the country. This company has given more than three times returns to its investors in the last three months. Know what is the reason for the tremendous rise in this stock.
More than three times returns in three months.
In the last one year, companies in the sugar sector have made the stock market investors rich. Shree Renuka Sugars today overtook companies like Eid Parry and Balrampur Chini by market cap to become the largest sugar company in the country. This stock has given excellent returns of more than 250 per cent in the last one year.
Shares of Shree Renuka Sugars closed at Rs 39.35 with a gain of nearly 5 per cent today. It has set a new record of 52 weeks today. The 52 week low level is Rs 8.10. On a weekly basis, for the sixth consecutive week, this stock is seeing an uptrend. On a monthly basis, for the last three months, this stock is closing at a steady pace.
Market Cap 8375 Crore
The market cap of Shree Renuka Sugars has increased to 8375 crores, which is the highest. At number two is EID Parry, which has a market cap of 7606 crores. Balrampur Chini is at number three, which has a market cap of 7481 crores. Triveni Engineering is at number four and Dalmia Sugar is at number five.
320% return in three months
If we look at the performance of Shree Renuka Sugars stock, in the last one week this stock has given a great return of 27 percent. It has given returns of 148 percent in one month, 320 percent in three months, 223 percent so far this year, 252 percent in last one year and 205 percent in three years.
Company’s emphasis on ethanol production
Recently Shree Renuka Sugars has announced to invest Rs 450 crore to increase its ethanol production capacity. In a communication sent to the stock exchanges, the company said that its board of directors has approved the expansion of ethanol production capacity by 430 kiloliters per day to 1,400 kiloliters per day. Earlier in February, the company’s board of directors had approved to increase the ethanol production capacity from 720 kl per day to 970 kl per day.
Presently the production capacity is 970 kiloliters per day.
The company said that in view of the government’s policies on ethanol blending, the board of directors has approved the increase in ethanol production capacity from 970 kiloliters per day to 1,400 kiloliters per day. The company said that an investment of Rs 450 crore would be required on this capacity expansion. The capacity expansion will be completed by October 2022.
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