Stock Price Movement and Market Context
On 21 Jan 2026, Shree Renuka Sugars Ltd’s share price declined by 3.70% to reach Rs.22.86, the lowest level in the past year. This drop extends a three-day losing streak during which the stock has fallen by 9.36%. The stock’s performance today lagged the sugar sector by 1.88%, signalling relative weakness within its industry group.
Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish momentum. This technical positioning suggests persistent selling pressure and limited short-term support levels.
Meanwhile, the broader market has also faced headwinds. The Sensex opened 385.82 points lower and closed down 253.29 points at 81,541.36, a 0.78% decline. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA. The Sensex has recorded a three-week consecutive fall, losing 4.92% over this period, indicating a cautious market environment.
Long-Term Performance and Relative Comparison
Over the last twelve months, Shree Renuka Sugars Ltd’s stock has depreciated by 41.76%, a stark contrast to the Sensex’s positive return of 7.54% during the same period. The stock’s 52-week high was Rs.40.29, highlighting the extent of the decline from its peak.
This underperformance extends beyond the past year. The company has consistently lagged the BSE500 index over the last three annual periods, reflecting ongoing challenges in delivering shareholder value relative to the broader market and its peers.
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Financial Health and Fundamental Metrics
Shree Renuka Sugars Ltd’s financial profile remains under pressure, reflected in its Mojo Score of 1.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 15 Oct 2024. The company’s market capitalisation grade stands at 3, indicating a mid-tier market cap but with significant fundamental concerns.
The company’s book value is negative, signalling weak long-term fundamental strength. Despite a modest compound annual growth rate of 12.65% in net sales over the past five years, the firm has reported losses and a negative net worth, raising questions about its capital structure and sustainability.
Debt metrics reveal a high leverage situation, with an average debt-to-equity ratio of 0 times, indicating reliance on debt financing. The company’s recent quarterly results have been negative, with a PAT loss of Rs.368.60 crores, representing a steep fall of 1552.9%. The half-yearly return on capital employed (ROCE) is at a low of -0.39%, while operating profit to interest coverage ratio stands at -0.99 times, highlighting difficulties in covering interest expenses from operating earnings.
Profitability and Risk Assessment
The company’s operating profits have been negative, contributing to a risky valuation profile compared to its historical averages. Over the past year, profits have declined by 57.6%, exacerbating the stock’s negative return of 41.76%. This combination of falling earnings and share price depreciation underscores the challenges faced by the company in stabilising its financial performance.
Despite its sizeable operations, domestic mutual funds hold a minimal stake of 0.35% in Shree Renuka Sugars Ltd. Given the capability of these funds to conduct detailed research, this limited exposure may reflect a cautious stance towards the company’s current valuation and business outlook.
Sector and Industry Considerations
Operating within the sugar industry, Shree Renuka Sugars Ltd’s performance contrasts with sector trends, as it has underperformed the sugar sector index in recent sessions. The sector itself has faced volatility, but the company’s relative weakness is notable given its scale and market presence.
The stock’s consistent underperformance against the benchmark indices over multiple years further emphasises the structural challenges it faces within the competitive landscape.
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Summary of Key Concerns
The stock’s fall to Rs.22.86, its lowest in 52 weeks, reflects a combination of weak financial results, negative profitability metrics, and subdued investor confidence. The company’s negative net worth and losses over consecutive quarters have contributed to a challenging valuation environment.
Technical indicators confirm the bearish trend, with the stock trading below all major moving averages and underperforming both its sector and the broader market. The limited participation from domestic mutual funds further highlights the cautious sentiment surrounding the stock.
While the sugar industry remains an important sector, Shree Renuka Sugars Ltd’s recent performance and financial metrics indicate ongoing difficulties in regaining positive momentum.
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