Stock of multiple bags: Despite the weakness in stock market sentiment, Renuka Sugars shares have remained one of the bulls’ favorite segments. Over the past two trading sessions, this multibagger sugar stock has spiked from $51.25 to $63.20 levels each, its new 52-week high and posted an increase of around 23 percent in just two trading sessions. Shares of Renuka Sugars have been providing a stellar return to its shareholders in the recent session, as it has delivered a return of around 70 per cent to its stock investors in the last month.
According to stock market insiders, Sugar shares are fundamentally strong due to the recent ethanol blending policy announced by the Government of India. It is expected to create a revenue stream for sugar milling companies. However, from a technical perspective, Renuka Sugars’ share price has taken a fresh break above $50 levels each on the closing basis and therefore the stock looks strong from a technical and fundamental perspective.
Highlighting the reason for such a sharp rally in Renuka Sugar’s share price; Santosh Meena, head of research at Swastika Investmart Ltd, said: “Sugar stocks are trending due to the government’s ethanol blending policy, rising crude oil and other commodity prices have forced the government to increase ethanol blending target from current 7% to 8% to 20% There is currently a shortage of ethanol supply in India which creates a huge opportunity for sugar companies Sugar prices have skyrocketed in India these days; therefore, these two factors have changed the fortunes of sugar companies, explaining the increase in investors’ investment interest in sugar stocks.”
Highlighted on the Renuka Sugars stock price chart pattern; Anuj Gupta, Vice President of Research at IIFL Securities, said: “Renuka Sugar shares have given a new break above $50 levels each based on closing. That is why stocks have risen for the past two days. As the Government of India has announced in the ethanol blending policy to increase its blend of ethanol in gasoline and diesel from the current 7-8% to over 20%, Renuka Sugars and other sugar companies are expected to report strong quarterly figures. long-term. “
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint.