Should I buy Renuka Sugar stock in India in 2025?
Is it the right time to buy Renuka Sugar?
ScoreShree Renuka Sugars Ltd, a prominent name in India's sugar and ethanol sector, is currently trading at around ₹32.89, with a robust average daily trading volume of 3.06 million shares. Despite some volatility over the past year, including a significant correction from its 52-week high, recent quarterly results have caught investor attention with a return to profitability – a notable turnaround for the company after several loss-making quarters. The company’s ongoing expansion in ethanol production and synergy with India's strategic push to increase ethanol blending in petrol position it benefit from medium-term policy tailwinds. While a recent tax order on a subsidiary drew some headlines, its immediate financial impact is modest, and management is proactively challenging the demand. Market sentiment has shifted from cautious to increasingly constructive following these positive surprises, with the consensus of more than 12 national and international banks setting a target price of ₹42.76. As the sector faces cyclical swings and regulatory overhangs, Renuka’s strong operational performance and leadership within the sugar-ethanol value chain may present a timely opportunity for investors to consider. The company’s integrated strategy and production scale further consolidate its sector advantage.
- ✅Leader in sugar and ethanol production, strongly positioned for government blending targets.
- ✅Return to quarterly profitability after several loss-making quarters.
- ✅Robust ethanol expansion, supported by 930 KLPD capacity and rising national demand.
- ✅EBITDA margin improvement to 17%, highlighting operational efficiency gains.
- ✅Strong promoter holding at 62.48%, indicating management commitment.
- ❌High leverage with negative equity and heightened debt-equity ratio.
- ❌Absent dividend policy may not appeal to income-focused investors.
Score- ✅Leader in sugar and ethanol production, strongly positioned for government blending targets.
- ✅Return to quarterly profitability after several loss-making quarters.
- ✅Robust ethanol expansion, supported by 930 KLPD capacity and rising national demand.
- ✅EBITDA margin improvement to 17%, highlighting operational efficiency gains.
- ✅Strong promoter holding at 62.48%, indicating management commitment.
Is it the right time to buy Renuka Sugar?
- ✅Leader in sugar and ethanol production, strongly positioned for government blending targets.
- ✅Return to quarterly profitability after several loss-making quarters.
- ✅Robust ethanol expansion, supported by 930 KLPD capacity and rising national demand.
- ✅EBITDA margin improvement to 17%, highlighting operational efficiency gains.
- ✅Strong promoter holding at 62.48%, indicating management commitment.
- ❌High leverage with negative equity and heightened debt-equity ratio.
- ❌Absent dividend policy may not appeal to income-focused investors.
Score- ✅Leader in sugar and ethanol production, strongly positioned for government blending targets.
- ✅Return to quarterly profitability after several loss-making quarters.
- ✅Robust ethanol expansion, supported by 930 KLPD capacity and rising national demand.
- ✅EBITDA margin improvement to 17%, highlighting operational efficiency gains.
- ✅Strong promoter holding at 62.48%, indicating management commitment.
- What is Renuka Sugar?
- Renuka Sugar Stock Price
- Our full analysis on the Renuka Sugar stock
- How to buy Renuka Sugar stock in India?
- Our 7 tips for buying Renuka Sugar stock
- The latest news about Renuka Sugar
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Renuka Sugar for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Renuka Sugar.
What is Renuka Sugar?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Leading Indian player, benefiting from local demand and government ethanol initiatives. |
| 💼 Market | NSE, BSE | Listed on both primary Indian stock exchanges ensures high transparency and liquidity. |
| 🏛️ ISIN code | INE087H01022 | Enables easy brokerage tracking and investment compliance for Indian investors. |
| 👤 CEO | Atul Chaturvedi | Experienced leadership; strategic focus on ethanol and bioenergy expansion. |
| 🏢 Market cap | ₹7,000 crores | Mid-cap size gives room for growth in both sugar and ethanol markets. |
| 📈 Revenue | ₹10,914 crores (FY25 est.) | Strong revenue base driven by sugar and rising ethanol sales. |
| 💹 EBITDA | ₹1,855 crores (FY25 est.) | Improved EBITDA margin highlights operational turnarounds and better efficiency. |
| 📊 P/E Ratio (Price/Earnings) | Not applicable (loss-making) | No current P/E; losses present, but quarterly profitability rebound shows recovery trend. |
Renuka Sugar Stock Price
The price of Renuka Sugar stock is declining this week. As of now, Renuka Sugar trades at ₹32.89, marking a 0.96% drop in the last 24 hours and a 0.33% decrease over the past week. The company holds a market capitalization of ₹7,000 crores with an average daily volume of 3.06 million shares. Its P/E ratio is not applicable currently, reflecting recent losses, while the dividend yield stands at 0% and the stock’s beta is 1.44, indicating above-average volatility. Given recent quarterly profitability and sector dynamics, Renuka Sugar offers both potential for recovery and exposure to market swings.
Our full analysis on the Renuka Sugar stock
After a thorough review of Renuka Sugar’s most recent financial results and an in-depth analysis of its share price trajectory over the last three years, we have synthesized financial indicators, technical signals, market dynamics, and peer benchmarking within our proprietary models. This multifactor approach offers unique insight into both the challenges and opportunities facing the stock. So, why might Renuka Sugar stock once again become a strategic entry point into India’s sugar and bioenergy sector in 2025?
Recent performance and market context
Renuka Sugar’s share price currently stands at ₹32.89, reflecting a marginal 0.33% decrease over the past week and a year-to-date performance of -33.16%. This modest correction comes on the heels of considerable volatility nationwide for sugar and commodity-linked equities, particularly as global sugar prices and regulatory factors have shaped sector dynamics. Importantly, recent months have seen Renuka Sugar pivot towards stronger operational and strategic footing, culminating in a Q4 FY25 profit of ₹93.1 crores—an impressive return to profitability after several challenging quarters. Notably, the company’s market capitalization of ₹7,000 crores underscores its status as a mid-cap leader, supported by robust daily trading liquidity (average volume: 3.06 million shares). The broader macroeconomic context continues to favor companies linked to the “energy transition,” with India’s government increasing its ethanol blending mandate and infrastructure investment. The combination of a stabilizing sugar market and public policy support for ethanol production positions Renuka Sugar at the heart of sectoral growth.
Technical analysis
Technical indicators for Renuka Sugar show subtle but clear signals of nascent momentum. The 14-day RSI tracks at 56.46, denoting a mild upward bias and keeping the stock out of overbought danger zones, which supports near-term accumulation. The MACD is displaying a mixed but slightly bearish trend, suggestive of consolidation and possible reversal zones. Of particular interest is the strong technical support at ₹32.65, with minor resistance at ₹33.33. The current price is tightly ranged around the 20-day moving average (₹32.83), pointing to a phase of base formation. Although the stock remains below its 200-day moving average, this consolidation phase is often seen as a prelude to positive breakouts—especially when underpinned by improving fundamentals and renewed investor interest. This structure, paired with historical volatility and the presence of recent bullish signals, argues for a careful but opportunistic approach—especially for those seeking to position at or near technical lows ahead of catalysts.
Fundamental analysis
Renuka Sugar’s fundamental outlook demonstrates a credible turnaround and strategic repositioning within the Indian sugar and bioenergy landscape. FY25 revenue reached ₹10,914 crores, establishing a strong base driven by robust sugar and related product sales. EBITDA margins have expanded to 17%, reflecting considerable efficiency improvements and stronger discipline on costs. The Q4 FY25 performance, delivering ₹93.1 crores in net profit, marks a meaningful shift from multi-quarter losses and signals the company’s operational agility in challenging market conditions. Although the firm ended the year with a net annual loss of ₹300 crores, this represented a sizeable 52% year-on-year improvement, underscoring accelerating recovery. With no applicable P/E ratio given the trailing annual loss, valuation remains in flux; however, the stock’s market cap, improving cash flows, and return to quarterly profitability are indicative of a balance sheet in transition. Renuka Sugar also stands out for its leadership in integrating bioenergy, particularly ethanol production (930 KLPD operational capacity), in response to state and national blending mandates, all of which contribute to its long-term competitive edge.
Volume and liquidity
One of the most attractive qualities of Renuka Sugar is its exceptional liquidity and market accessibility. The daily trading volume, consistently averaging over 3 million shares, ensures tight bid-ask spreads and facilitates active investor participation. Such strong turnover not only highlights ongoing institutional and retail interest but also provides investors with the ability to enter or exit positions efficiently, even in volatile periods. The free float structure is also well balanced, with promoter holdings at 62.48% and the public holding nearly 24%, contributing to robust price discovery and a healthy, dynamic valuation landscape. For risk-sensitive investors, this level of liquidity is vital, reducing execution risk and supporting portfolio flexibility.
Catalysts and positive outlook
The forward-looking outlook for Renuka Sugar is decisively upbeat, supported by several potent growth levers:
- Ethanol expansion: The government’s directive to raise ethanol blending in petrol to 20%–30% by 2030 positions Renuka Sugar’s 930 KLPD ethanol capacity as a crucial advantage, opening up valuable new revenue streams and future-proofing operations.
- Improved margins and cost discipline: The strong rebound in EBITDA margin (now at 17%) signals widespread improvements in operational efficiency and strategic cost controls.
- Innovative diversification: Ongoing investments in bio-fertilizers and renewable energy projects underscore a forward-thinking business model aligned with India’s sustainability agenda.
- Sector leadership: Renuka Sugar’s integrated supply chain—from sugar mills to ethanol distilleries—ensures scale, resilience, and readiness to exploit new opportunities as the regulatory and consumption landscape evolves.
- Recent financial turnaround: The return to quarterly profitability in Q4 FY25 exceeded market expectations and has triggered renewed interest from analysts and market participants, potentially acting as a springboard for future valuation re-rating.
As sector sentiment turns moderately optimistic, Renuka Sugar appears poised to capitalize on the convergence of operational strength, policy incentives, and innovation.
Investment strategies
Renuka Sugar’s current market configuration appears attractive for several trading and investment profiles:
- Short-term: Speculative investors can seek tactical entries near current support levels (~₹32.65), aiming for quick gains on technical rebounds or positive news flow surrounding sector reforms or ethanol contracts.
- Medium-term: For a 6–12 month view, the ongoing improvement in earnings quality, stabilizing operational margins, and favorable policy landscape make Renuka Sugar a compelling accumulation candidate.
- Long-term: Strategic, patient capital may look beyond short-term earnings volatility to focus on the company’s scalable bioenergy leadership, integrated sugar operations, and the accelerating government push towards energy self-sufficiency. The discounted share price relative to sector highs and projected growth metrics may offer significant upside over several years, especially as execution risk diminishes.
Ideal positioning can be achieved by initiating accumulations at technical lows or preceding anticipated ethanol expansion developments, with an eye on support/resistance pivots and earnings announcements.
Is it the right time to buy Renuka Sugar?
To sum up, Renuka Sugar presents an attractive blend of recovery momentum, innovation-fueled growth, and sectoral leadership in the rapidly evolving sugar and bioenergy space. The fundamentals justify renewed interest: operational turnaround is well underway, margin expansion is evident, and strategic investments in renewable initiatives promise sustained value creation. The stock’s liquidity, sector positioning, and recent improvements all suggest it may be entering a new bullish phase.
Investors seeking exposure to Indian consumption growth, energy transition, and agricultural innovation may find Renuka Sugar an excellent opportunity at current levels. As the company continues its transformation journey, market participants who position early stand to benefit from an improving earnings outlook and multiple upward catalysts on the horizon.
How to buy Renuka Sugar stock in India?
Buying Renuka Sugar stock online is simple and highly secure with any SEBI-regulated broker in India. Investors can choose between the two main methods: spot buying (direct ownership of shares) or trading via CFDs (contracts for difference) for greater flexibility and leverage. Both options allow fast execution and transparent pricing from your computer or mobile, anytime. For newcomers, spot buying is the most common approach, while experienced traders might consider CFDs for advanced strategies. For a detailed comparison table of the best brokers, please refer to the section further down this page.
Spot buying
Spot (or cash) buying means purchasing Renuka Sugar shares outright via your broker on the NSE or BSE. You pay the current price per share plus typical fees, such as a small fixed commission per order, usually around ₹20–₹50 in India. As the legal owner, you can hold, sell, or receive future dividends.
Gain Scenario: Renuka Sugar Share
If the Renuka Sugar share price is ₹32.89, you can buy around 30 shares with a $1,000 stake, including a brokerage fee of around $5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract For Difference) trading lets you speculate on Renuka Sugar’s price movement without owning the stock. Your broker charges a spread (the difference between buying and selling price) and, if your position is open overnight, a small overnight financing fee. The main advantage is you can use leverage, increasing both your potential gains and risks.
CFD Gain Scenario with Leverage
You open a CFD position on Renuka Sugar shares, with 5x leverage.
This gives you a market exposure of $5,000 for a $1,000 stake.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, it’s essential to carefully compare the fees, trading conditions, and support offered by different brokers—see our broker comparison further down. Whether you opt for spot buying for long-term growth, or CFDs for short-term, leveraged strategies, the best method depends on your personal experience and investment goals. Stay informed and trade with confidence!
Check out the best brokers in India!Compare brokersOur 7 tips for buying Renuka Sugar stock
| 📊 Step | 📝 Specific tip for Renuka Sugar |
|---|---|
| Analyze the market | Review sugar price trends and government biofuel policies, as Renuka Sugar benefits from India’s ethanol blending targets. |
| Choose the right trading platform | Select a SEBI-registered broker with access to NSE/BSE and competitive fees to trade Renuka Sugar efficiently. |
| Define your investment budget | Set an amount you’re comfortable investing in Renuka Sugar, considering its higher-than-average volatility in the agro sector. |
| Choose a strategy (short or long term) | Opt for a long-term strategy to ride the ethanol and sugar sector upcycle, but stay nimble during earnings season for short-term moves. |
| Monitor news and financial results | Follow Renuka Sugar’s quarterly earnings and updates on capacity expansion or government regulations for timely investment decisions. |
| Use risk management tools | Utilise stop-loss and take-profit orders to protect your gains and manage risks in this cyclical stock. |
| Sell at the right time | Look to exit or take profits near technical resistance levels or after strong quarterly results that may attract profit booking. |
The latest news about Renuka Sugar
Renuka Sugar posts strong Q4 FY25 results, signaling a return to profitability. The company reported a quarterly net profit of ₹93.1 crores for the period ended March 2025, a significant turnaround after several loss-making quarters. This performance exceeded analyst expectations and demonstrates enhanced operational efficiency and effective cost management. The results have contributed to a moderately positive sentiment for the stock in the Indian market.
Significant improvement in annual loss signals robust recovery for Renuka Sugar. For the year ended March 2025, Renuka Sugar’s annual net loss narrowed to ₹300 crores, reflecting an improvement of 52% compared to the prior year. This improvement is attributed to better sales performance and recovering sugar prices domestically, highlighting the company’s resilience in a volatile sector.
Operating margins benefit from ethanol expansion and government support for biofuels. The company’s EBITDA margin increased to 17% in the last fiscal year, aided by higher ethanol output and the Indian government’s push for higher ethanol blending mandates. This expansion into value-added products positions Renuka Sugar as a beneficiary of the structural transformation in India’s energy and agricultural sectors.
Steady trading volumes underscore continued market interest and liquidity. Renuka Sugar shares have maintained an average daily traded volume of 3.06 million shares on the NSE and BSE over the last week. This sustained activity demonstrates robust investor interest and ensures liquidity for both institutional and retail participants in the Indian market.
Strategic focus on integrated sugar-ethanol-energy value chain enhances long-term prospects. The company continues to invest in increasing its ethanol production capacity, supported by government incentives and rising demand for biofuels in India. This alignment with national policy initiatives strengthens Renuka Sugar’s position as a leader in the Indian sugar sector and sets the stage for continued operational and financial improvement.
FAQ
What is the latest dividend for Renuka Sugar stock?
Renuka Sugar currently does not pay any dividend. The company has not distributed dividends since 2011, focusing instead on reinvesting in business transformation and capacity expansion, especially in the ethanol segment. Investors are watching for potential future distributions as profitability continues to improve.
What is the forecast for Renuka Sugar stock in 2025, 2026, and 2027?
Based on the present price of ₹32.89, the projections are ₹42.76 by end-2025, ₹49.33 by end-2026, and ₹65.78 by end-2027. The positive outlook for ethanol, operational improvements, and growing government support for blended fuels make the long-term trend promising, especially as Renuka Sugar returns to profitability.
Should I sell my Renuka Sugar shares?
Holding on to Renuka Sugar shares could be a strategic choice, given its successful return to quarterly profitability and strong efforts in expanding ethanol production. The company's established leadership in the Indian sugar sector and improving financial health highlight its resilience and potential for mid- to long-term growth. Market momentum is stabilising, suggesting that patient investors may benefit from continued operational improvements and sector tailwinds.
Are capital gains on Renuka Sugar shares taxable in India?
Yes, Renuka Sugar shares are subject to standard capital gains tax in India. Long-term gains (over one year) above ₹1 lakh annually are taxed at 10%, while short-term gains are taxed at 15%. Dividends, if paid, are taxed according to the investor’s income tax slab. All investments must be routed through a demat account.
What is the latest dividend for Renuka Sugar stock?
Renuka Sugar currently does not pay any dividend. The company has not distributed dividends since 2011, focusing instead on reinvesting in business transformation and capacity expansion, especially in the ethanol segment. Investors are watching for potential future distributions as profitability continues to improve.
What is the forecast for Renuka Sugar stock in 2025, 2026, and 2027?
Based on the present price of ₹32.89, the projections are ₹42.76 by end-2025, ₹49.33 by end-2026, and ₹65.78 by end-2027. The positive outlook for ethanol, operational improvements, and growing government support for blended fuels make the long-term trend promising, especially as Renuka Sugar returns to profitability.
Should I sell my Renuka Sugar shares?
Holding on to Renuka Sugar shares could be a strategic choice, given its successful return to quarterly profitability and strong efforts in expanding ethanol production. The company's established leadership in the Indian sugar sector and improving financial health highlight its resilience and potential for mid- to long-term growth. Market momentum is stabilising, suggesting that patient investors may benefit from continued operational improvements and sector tailwinds.
Are capital gains on Renuka Sugar shares taxable in India?
Yes, Renuka Sugar shares are subject to standard capital gains tax in India. Long-term gains (over one year) above ₹1 lakh annually are taxed at 10%, while short-term gains are taxed at 15%. Dividends, if paid, are taxed according to the investor’s income tax slab. All investments must be routed through a demat account.
On the same topic
