Should I buy Renuka Sugar stock in 2025? Full Guide for India Investors

What is Renuka Sugar?

How much is Renuka Sugar stock?

The price of Renuka Sugar stock is rising this week. Currently trading at ₹33.36, the stock has gained ₹1.51 (up 4.74%) in the past 24 hours and is up ₹5.90 (a strong 21.49%) over the last week. Renuka Sugar now holds a market capitalization of ₹6,779 crore, with an average 3-month daily volume of 5.97 million shares.

The company does not have a P/E ratio due to recent losses and is not paying a dividend at present, while its stock beta stands at 1.34, indicating higher volatility compared to the broader market. Investors should consider this elevated volatility when evaluating potential opportunities in this fast-moving sector.

Our full analysis on Renuka Sugar stock

After a detailed review of Shree Renuka Sugars Ltd’s latest financial disclosures and its stock price evolution over the last three years, we have leveraged comprehensive datasets—including financial ratios, technical indicators, sector trends, and proprietary market analytics—to deliver a nuanced view of its investment potential. Synthesizing company fundamentals with recent price action and competitive positioning, the analysis reveals several converging signals. So, why might Renuka Sugar stock once again become a strategic entry point into India’s dynamic agritech and renewable energy sector in 2025?

Recent Performance and Market Context

Renuka Sugar’s recent stock performance highlights the emergence of a new bullish dynamic. Closing at ₹33.36 on May 19, 2025, the stock delivered a robust +21.49% weekly surge despite lingering volatility over the last twelve months, where it corrected -22.15%. This short-term rally is paired with a striking intraday gain of +4.74%, fueled by renewed investor confidence following a return to profitability in Q4 FY25. Notably, the company’s average daily trading volume stood at an impressive 5.97 million shares, reflecting increased market participation and liquidity.

On the macro front, India’s food, beverages & tobacco sector is benefiting from rising rural incomes, evolving consumption patterns, and the government’s ongoing sugar and ethanol blending initiatives. The latter is particularly significant for Renuka Sugar: as a vital pillar of India’s ethanol program, the company is positioned to capture value throughout the energy transition. The broader regulatory and demand context—combined with the government’s commitment to rural economic growth—sets a favorable stage for integrated agribusinesses.

Technical Analysis

• Momentum Indicators: The 14-day RSI sits at 70.3, suggesting near-term overbought conditions but also demonstrating powerful underlying demand. The MACD reading of 0.7, comfortably above both center and signal lines, confirms a persistent uptrend.
• Moving Averages: Current price action above 6 out of 8 key simple moving averages, including the 20-day (₹29.6), 50-day (₹28.8), and just above the 100-day (₹32.4), underscores a decisive short- to medium-term momentum shift.
• Support and Resistance: Strong support levels are visible at ₹32.11 and ₹30.85, with overhead resistance at ₹34.41 and ₹35.45—offering a clear technical roadmap for trade positioning.
• Pattern Recognition: Recent bullish candlestick patterns such as the Belt Hold Uptrend and Separating Lines Uptrend are further evidence that buyers are regaining control, possibly signaling the early stages of a major trend reversal from recent underperformance.

Importantly, while the stock remains about 41% below its 52-week high of ₹56.50, the ongoing technical rebound paired with high trading volume may suggest that Renuka Sugar is entering a new accumulation phase.

Fundamental Analysis

While revenues in Q4 FY25 contracted by 22.36% year-on-year to ₹2,713 crore, the company’s return to net profitability—with ₹93.1 crore against a previous year’s loss of ₹111 crore—is a distinct inflection point. Operating profit, despite being 28.65% lower at ₹209.10 crore, still reflects a positive operational leverage amid a challenging pricing environment.

• Business Model & Leadership: Renuka Sugar operates as India’s largest sugar refiner and ethanol producer, leveraging a robust vertically integrated supply chain and significant economies of scale.
• Ethanol Growth Driver: As a primary ethanol supplier for India’s government blending program, the company stands to benefit from secular tailwinds supporting alternative fuels and green energy.
• Wilmar Group Backing: The majority holding of 62.48% by Wilmar Sugar and Energy Pte. Ltd. ensures access to global expertise, capital, and strategic stability. This parentage bolsters investor preservation and long-term growth assurance.
• Attractive Valuation Relative to Upside: Despite the lack of a near-term P/E due to prior losses, the market capitalization of ₹6,779 crore positions the stock at a price point that may look attractive if profitability continues to improve. The price-to-sales ratio, considering the company’s scale and growth avenues, appears reasonable during a phase of operational recovery.
• Resilience and Market Share: Renuka Sugar’s large installed capacity and end-to-end presence minimize exposure to raw material shocks and enable agile adaptation to policy or market changes.

Volume and Liquidity

The consistently high average trading volume, at nearly 6 million shares daily, is a clear marker of rising liquidity and increased institutional and retail interest. This dynamism in volume supports price discovery and ensures tighter bid-ask spreads—conditions typically associated with robust market confidence. Moreover, with nearly 29.5% of shares held by public and institutional investors, there exists sufficient float to enable dynamic valuation adjustments without significant price manipulation risk.

Catalysts and Positive Outlook

• Ethanol Expansion: The company’s focus on ramping up ethanol production aligns with both immediate and long-term government mandates around fuel blending, likely boosting revenue visibility and margin resilience.
• Government Policy Momentum: Policy signals from the central government continue to prioritize renewable energy and rural industrialization, both supporting Renuka’s long-term demand profile.
• ESG Initiatives: As environmental, social, and governance (ESG) standards become increasingly central to investor mandates, Renuka’s status as an integrated bioenergy leader enhances its sustainability credentials.
• Financial Turnaround: Market sentiment is undergoing a cautious transition from skepticism to optimism, particularly as the company sustains profitability and strengthens its balance sheet. The improving operating profit-to-interest ratio further signals robust financial discipline.
• Potential for Strategic Alliances: The sector remains ripe for consolidation or global partnerships—scenarios where Renuka’s unique positioning could unlock additional value.

Investment Strategies

With its volatile beta of 1.34, Renuka Sugar appeals to a spectrum of investors—each able to tailor an approach to risk tolerance and market timing:

• Short Term: The current positive technical momentum, combined with strong support levels (notably around ₹32), offers traders a chance to capitalize on swift directional moves, particularly as intraday and weekly volumes pick up.
• Medium Term: For investors looking to position ahead of upcoming catalysts—such as additional government ethanol mandates or the next earnings cycle—establishing entries above the support zone or on any retracements towards ₹30 may provide attractive risk-reward profiles.
• Long Term: Investors with a focus beyond the immediate quarter may find the strategic strength, EPS recovery trajectory, and Wilmar Group backing to be compelling for accumulation during periods of sector volatility—or in anticipation of a broader rerating as financial performance normalizes.

A disciplined approach blending technical levels with catalyst monitoring may maximize portfolio effectiveness, while Renuka Sugar’s float and liquidity reduce transaction risks for position traders and institutional participants alike.

Is it the Right Time to Buy Renuka Sugar?

• Short-term price action and high volume reveal renewed market enthusiasm
• The return to profitability in Q4 FY25, against sector headwinds, validates management’s operational discipline and turnaround strategy
• The company is riding multi-year secular drivers: ethanol blending mandates, India’s energy transition, and consumer market expansion
• Backing by the Wilmar Group adds an additional layer of stability often missing in mid-cap agribusinesses
• The technical structure currently shows robust support levels and momentum, suggesting the recent uptrend remains intact

While volatility and policy exposure imply the need for prudent risk management, the recent improvement in operational performance and sector leadership reinforces the view that Renuka Sugar’s current pricing may represent an excellent opportunity for those seeking exposure to India’s rising bioenergy and agritech supercycle. For investors and traders positioning ahead of robust catalysts and policy tailwinds, Renuka Sugar’s blend of value, growth, and strategic advantage is generating the kind of optimism often witnessed at the onset of a new bullish phase.

Smart money may well see 2025 as the year when Renuka Sugar leverages both its scale and expertise—offering a compelling entry point for market participants attuned to India’s fast-evolving energy and agriculture landscape.

How to buy Renuka Sugar stock in IN?

Buying Shree Renuka Sugars Ltd. stock online has become easier and more secure than ever, thanks to the growth of regulated brokers in India. Investors can choose between two main methods: spot buying (also called cash buying), where you directly own the shares, or trading Contracts for Difference (CFDs), which let you speculate on Renuka Sugar’s share price without actually owning the stock. Both options can be accessed through trusted broker platforms that safeguard your funds and comply with SEBI regulations. If you want to compare fees, features, and platforms, make sure to check our detailed broker comparison further down the page.

Spot Buying (Cash Purchase)

A cash purchase means you’re buying real Shree Renuka Sugars shares on the stock exchange (e.g., NSE) and holding them in your demat account. This is a straightforward, long-term investment approach. Most brokers in India charge a flat commission, typically between ₹10–25 per order, plus small regulatory fees and GST.

Concrete example

If Renuka Sugar trades at ₹33.36 per share, with $1,000 (~₹83,400 at ₹83.4/USD), you could purchase about 2,498 shares. Including a typical ₹400 (about $5) brokerage fee, your total cost is just over ₹83,400.

Gain scenario: If the share price rises 10% to ₹36.70, your holding is now worth about ₹91,767.

Result: That’s a gross gain of around $100 (+10%) on your original $1,000 investment, before taxes and minor fees.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movement of Renuka Sugar without taking ownership of the actual shares. CFDs are offered by some regulated international brokers accessible in India.

How it works

Instead of buying shares, you open a CFD position that mirrors the stock price. Main fees include the ‘spread’ (difference between buy and sell price) and overnight financing if you keep leveraged positions open beyond a day.

Example with leverage

You open a position with $1,000 and 5x leverage, so your effective exposure is $5,000.

Gain scenario: If Renuka Sugar’s price rises by 8%, your position earns 8% × 5 = 40% return.

Result: That’s a $400 gain on your $1,000 margin (excluding spread and overnight costs). Remember, leverage amplifies both gains and losses, so use it wisely.

Final Advice

Before you start, it’s vital to carefully compare brokers’ fees, trading conditions, and regulatory status—costs can vary widely, especially between cash buying and CFD trading. Your ideal method depends on your goals: if you want to become a shareholder and invest for the long term, cash buying makes sense; if you prefer short-term speculation and the use of leverage, CFDs could be suitable. Make informed decisions by consulting our broker comparator further down the page to find the platform that best fits your needs.

Our 7 tips for buying Renuka Sugar stock

The latest news about Renuka Sugar

Shree Renuka Sugars posted a strong 21.49% share price gain in the last week on the NSE. This robust weekly surge signals renewed investor confidence, likely driven by short-term bullish momentum in technical indicators and a return to profitability in the most recent quarter. With a current price of ₹33.36, the stock outperformed broader market indices, supported by nearly six million average daily shares traded, reflecting high liquidity and strong trading interest among Indian market participants.

Latest Q4 FY25 results show the company returned to profitability with a net profit of ₹93.1 crore. This marks a significant turnaround from a loss of ₹111 crore in the corresponding period last year, despite a 22% year-on-year decline in revenue. The positive swing in profitability has been well-received by the market and suggests effective management actions to improve earnings quality. The improvement in the operating profit-to-interest ratio further underlines enhanced financial health, an encouraging sign for investors watching for sustainable recovery.

Technical analysis reveals strong bullish momentum, with Renuka trading above key moving averages and in overbought territory. The stock is currently above six out of eight important short- and medium-term simple moving averages (SMAs), with a 14-day RSI at 70.3 and a MACD firmly above its signal line. Recent bullish candlestick formations, such as the Belt Hold Uptrend and Separating Lines Uptrend, reinforce this momentum. While the stock remains nearly 41% below its 52-week high, present technical signals suggest further upward potential should positive sentiment prevail locally.

The company’s strategic role in India’s ethanol-blending fuel program positions it for sustained growth. As India’s largest sugar refiner and ethanol producer, Renuka significantly contributes to the national energy transition and benefits from government initiatives promoting ethanol blending. Ongoing capacity expansion and a focus on strengthening the balance sheet are poised to generate significant long-term value, appealing to investors looking to benefit from both regulatory support and the growing demand for biofuels in India.

Majority ownership by the Wilmar Group and a fully integrated business model offer stability and competitive advantages. With Wilmar Sugar and Energy Pte. Ltd. controlling more than 62% of shares and leading Indian banks as key stakeholders, Renuka enjoys backing from robust institutional partners. Its end-to-end integration—from agri-sourcing to refining and bioenergy production—ensures operational resilience amid volatile market conditions, reinforcing its position as a flagship player in India’s transformative sugar and ethanol sectors.

FAQ

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.