The trend of upsurge in the domestic stock market continues. Smallcap stocks have given great returns in this boom. Today, the share of Shree Renuka Sugars Limited in the sugar sector has an upper circuit of 5 percent. The stock has reached a new 52-week high of Rs 22.80 on the BSE. The stock has given more than 50 per cent returns in a week. The shares of this sugar company have mixed sweetness in the lives of investors.
Shares of Shree Renuka Sugars have gained over 220 per cent in 12 months and have gained 90 per cent since the beginning of this year. An investor of Rs 5 lakh made in this stock a year ago has now increased to more than Rs 15.60 lakh.
Why is the stock rising
Recently, Prime Minister Narendra Modi has reduced the deadline by five years to 2025 to achieve the target of 20 per cent ethanol blending in petrol to cut carbon emissions and reduce dependence on imports. After this news, there is a bullish trend in sugar stocks.
Ethanol is extracted from spoiled food grains and agricultural residues like sugarcane and wheat, broken rice. This also reduces pollution and farmers also get a means of earning separate income.
Stock up more than 50 percent
The stock of Shree Renuka Sugars has registered a jump of 52 per cent in a week. The share price was Rs 14.95 on June 2, 2021, which reached a new high of Rs 22.80 today. In this way, it gained 52 per cent.
At present, about 8.5 per cent ethanol is mixed with petrol, whereas in 2014 the level of this blending was only 1-1.5 per cent. The purchase of ethanol has increased from 38 crore liters annually to 320 crore liters now. When 20 per cent blending starts, the quantity of ethanol purchase will increase further.
Let us tell you that Shree Renuka Sugars operates 11 sugar mills across the world. The company has 4 mills in Centre-South Brazil and 7 in India. These mills are ethanol integrated and capable of generating power. The company also has two large port based sugar refineries in India.
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