Shree Renuka Sugars Limited (RENUKA) AI Stock Analysis

• Market Cap: ₹53.45B
• Dividend Yield: N/A
• Average Volume (3M): 401.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -18.81%
• EPS Growth: -57.61%
• Country: IN
• Employees: 2,132
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -1.73
• Shares Outstanding: 2,128,489,700
• 10 Day Avg. Volume: 280,995
• 30 Day Avg. Volume: 401,137
• PEG Ratio: 0.39
• Price to Book (P/B): -3.64
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 8.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹24.50 ▼(-5.66% Downside)

The overall stock score is primarily impacted by the company's financial performance, which is hindered by persistent losses and high leverage. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Operating cash generation

Consistent positive operating cash flow indicates the core sugar-processing operations generate cash despite reported net losses. Durable cash generation supports working capital, funds seasonal operations, and provides runway for restructuring or gradual deleveraging over the next several months.

Integrated processing and market access

An integrated footprint across mills and refineries plus access to domestic and export channels gives structural resilience. Vertical processing and export exposure diversify revenue sources and allow the firm to shift volumes to higher-margin outlets as market conditions evolve over a multi-month horizon.

Stable gross profit margins

Relatively stable gross margins imply the business maintains processing efficiency and can manage direct input costs. That stability provides a foundation for restoring profitability if overheads and financing costs are addressed, making margin recovery feasible over a 2–6 month strategic horizon.

Negative Factors

High leverage and negative equity

Negative shareholders' equity and elevated leverage signal solvency risk and constrain financing flexibility. This structural weakness limits capacity for capex, refinancing, or working capital support and may necessitate recapitalization or asset sales to stabilize the balance sheet over the medium term.

Persistent net losses

Ongoing net losses erode retained capital and increase reliance on external funding. Without sustained margin improvement or structural cost reduction, persistent losses impair reinvestment, raise default risk under high leverage, and weaken competitive position over the coming months.

Declining revenue and earnings trends

Material declines in revenue and EPS reflect weakening demand, pricing pressure, or lost volumes. Such deteriorating top-line and earnings trends reduce free cash flow potential and make deleveraging and operational recovery more difficult without strategic changes or external capital support.

Shree Renuka Sugars Limited Business Overview & Revenue Model

Company Description

Shree Renuka Sugars Limited manufactures and refines sugar in India and internationally. The company provides white/refined sugar, as well as by-products, including molasses, bagasse, press mud, and organic manure; and ethyl alcohol from molasses and fuel grade ethanol from sugarcane juice. It also produces power from bagasse, a sugarcane byproduct for state grids. The company was incorporated in 1995 and is headquartered in Belgaum, India. Shree Renuka Sugars Limited is a subsidiary of Wilmar Sugar Holdings Pte. Ltd.

How the Company Makes Money

Shree Renuka Sugars Limited generates revenue primarily through the sale of sugar, which is its core product. The company benefits from a multi-faceted revenue model that includes the sale of sugar and its by-products such as molasses, bagasse, and ethanol. Sugar sales contribute significantly to its earnings, with the company operating several sugar mills that process large volumes of sugarcane. Additionally, RENUKA produces ethanol from sugarcane, leveraging the growing demand for biofuels and contributing to its revenue streams. The company also engages in power generation from bagasse, which not only provides an additional revenue stream but also supports its sustainability initiatives. Partnerships with farmers for sugarcane procurement and collaborations with various stakeholders in the supply chain enhance its operational efficiency and market reach. The company’s ability to adapt to market trends, manage costs effectively, and capitalize on government policies related to renewable energy and biofuels further drives its profitability.

Shree Renuka Sugars Limited Financial Statement Overview

Summary

Shree Renuka Sugars Limited shows potential in terms of revenue growth, but faces significant challenges due to persistent losses and high leverage. The balance sheet indicates financial instability, while the cash flow statements suggest some liquidity strength. Improvement in profitability and debt management could enhance their financial position.

Income Statement

The company has shown significant revenue growth over the years, indicating strong market demand. However, the net profit margin is negative due to persistent losses, which raises concerns about long-term profitability. Gross profit margins have remained fairly stable, but the negative EBIT and EBITDA margins in earlier years highlight operational inefficiencies.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, primarily due to negative stockholders' equity, indicating potential solvency issues. The equity ratio is negative, reflecting financial instability. Despite this, the firm has managed to maintain its asset base over the years.

Cash Flow

The cash flow statement shows positive operating cash flow in recent years, which is a good sign of liquidity. However, the free cash flow has fluctuated, indicating inconsistent cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting effective cash management despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	95.66B	105.89B	113.00B	90.21B	63.75B	55.55B
Gross Profit	15.10B	4.20B	13.18B	18.46B	12.27B	5.05B
EBITDA	4.73B	6.41B	6.37B	6.49B	4.62B	5.67B
Net Income	-3.97B	-3.00B	-6.27B	-1.97B	-1.39B	-1.15B
Balance Sheet
Total Assets	0.00	88.38B	101.71B	76.04B	71.03B	69.07B
Cash, Cash Equivalents and Short-Term Investments	790.00M	687.14M	378.72M	1.67B	222.34M	369.11M
Total Debt	0.00	58.89B	57.94B	55.69B	52.34B	44.47B
Total Liabilities	16.75B	105.13B	116.08B	84.85B	77.11B	75.71B
Stockholders Equity	-16.75B	-16.75B	-14.38B	-8.81B	-6.08B	-6.63B
Cash Flow
Free Cash Flow	0.00	7.59B	7.38B	5.26B	-4.12B	-16.70B
Operating Cash Flow	0.00	9.50B	9.13B	9.26B	-1.35B	-15.64B
Investing Cash Flow	0.00	-1.85B	-3.80B	-3.54B	-3.01B	-1.44B
Financing Cash Flow	0.00	-7.10B	-6.69B	-3.31B	4.54B	16.41B

Shree Renuka Sugars Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RENUKA, the sentiment is Neutral. The current price of 25.97 is above the 20-day moving average (MA) of 24.70, above the 50-day MA of 25.79, and below the 200-day MA of 29.50, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 74.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RENUKA.

Shree Renuka Sugars Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANARISUG	66 Neutral	₹45.14B	37.03	―	0.35%	-7.81%	-6.64%
UTTAMSUGAR	64 Neutral	₹8.26B	7.34	―	0.95%	19.83%	46.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVADHSUGAR	60 Neutral	₹6.65B	10.49	―	2.63%	4.95%	-26.77%
DHAMPURSUG	59 Neutral	₹7.52B	13.42	―	―	11.07%	-19.56%
RENUKA	46 Neutral	₹53.45B	-7.19	―	―	-18.81%	-57.61%
DWARKESH	46 Neutral	₹6.52B	43.30	―	1.34%	11.15%	―