Share of Shree Renuka Sugars Limited rose 10 per cent to hit a 52-week high of Rs 21.75 in early trade on BSE today.
The stock has zoomed 45 per cent in the past one week. Market cap of the firm rose to Rs 4,629.47 crore.
As per the share price history, Shree Renuka Sugars share closed at Rs 14.95 on June 2, 2021. It hit an intraday high of Rs 21.75 in today's morning session. In a week, the stock has delivered 45.48 per cent returns.
The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
It has gained 214 per cent in the last 12 months and risen 78 per cent since the beginning of this year.
An investment of Rs 5 lakh in the stock a year ago would have grown to Rs 15.60 lakh today.
"Shree Renuka has provided a medium to long-term breakout. The rise from Rs 3.25 to Rs 14.70 was a clear impulsive move on the way up and now with a breakout above Rs 14.70, it seems to have started leg up," Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance Limited, told Business Today.
"The minimum equality target on the upside comes to Rs 38. The stock is trading well above its 50 DEMA and 200 DEMA. The volumes have also increased with this breakout hence it's a price volume breakout," he noted.
"The momentum indicator MACD is well into the buy mode at all the time frames i.e. from daily to monthly charts. The Crucial support on the lower side is pegged at 13 hence till it holds this level in a closing basis the medium-term outlook is positive," he added.
Recently, Prime Minister Narendra Modi said that the target date for achieving 20 per cent ethanol-blending with petrol has been advanced by five years to 2025 to cut pollution and reduce import dependence.
Ethanol extracted from sugarcane as well as damaged food grains such as wheat and broken rice and agriculture waste is less polluting and its use also provides farmers with an alternate source of income.
Speaking at the launch of the ethanol road map on the occasion of World Environment Day, Modi said that the target for mixing 20 per cent ethanol in petrol has been brought forward from 2030 to 2025.
Currently, about 8.5 per cent ethanol is mixed with petrol as against 1-1.5 per cent in 2014, he said adding ethanol procurement has risen from 38 crore litres to 320 crore litres.
"With ethanol blending by oil marketing companies (OMCs) picking up pace and with the Government's stance on increasing the blending targets to 20% supported by the remunerative ethanol pricing and incentive schemes to build up capacities to achieve the same, the economics of sugar industry is getting better," CARE Ratings said in a report.
It believes that with sugar inventories getting rationalised, demand-supply balance evening out and a considerable increase in ethanol sales, the cash flows of integrated sugar mills are going to enhance in the next three to four years.
Shree Renuka Sugars operates eleven mills globally (four in Centre-South Brazil and seven in India) with integrated ethanol and power co-generation capacity. The company also has two large port-based sugar refineries in India.
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