Even though the stocks of sugar companies are showing strong growth for the past two days on the expectation of good production of sweetener in the current season (October 2021 – September 2022), Shree Renuka Sugar shares are doing exceptionally well as it It reached a 52-week high of Rs 49.50 per share on Thursday.
The company’s stock jumped 17 per cent to a new 52-week high in just two sessions amid the government’s ambitious ethanol blending programme. The stock was trading around Rs 49, up 36 per cent on Thursday as against Rs 35.85 on NSE on April 1.
At 13.17 pm, the stock was trading at Rs 49.50 per share and was up 20 per cent from its previous close on NSE.
Besides expectations of good sugar production in the current season, ethanol blending push and sugar minimum support price (MSP) at Rs 31 per kg are the major triggers behind the recent rally in sugar stocks.
Experts said the ethanol blending and MSP of sugar for the domestic market at Rs 31 per kg helped the industry despite surplus sugar production.
Domestic sugar prices are around Rs 31-32 per kg of MSP in Maharashtra while they are Rs 34-35 per kg in northern states.