Shree Renuka Sugars Ltd (RENUKA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DCM Shriram Inds

Uttam Sug.Mills

Triven.Engg.Ind.

Zuari Industries

Balrampur Chini

Dalmia Bharat

Bannari Amm.Sug.

Piccadily Agro

Bajaj Hindusthan

Sh.Renuka Sugar

M.V.K. Agro

Why is Shree Renuka Sugars Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 12.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 2.30 times
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

The company has declared negative results for the last 2 consecutive quarters

PAT(Q) At Rs -368.60 cr has Fallen at -1552.9%
ROCE(HY) Lowest at -0.39%
OPERATING PROFIT TO INTEREST (Q) Lowest at -0.99 times

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.38%, its profits have fallen by -57.6%

Despite the size of the company, domestic mutual funds hold only 0.35% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sh.Renuka Sugar for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sh.Renuka Sugar

-38.45%

-1.09

35.38%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.65%

EBIT Growth (5y)

-215.72%

EBIT to Interest (avg)

-0.27

Debt to EBITDA (avg)

37.60

Net Debt to Equity (avg)

-2.67

Sales to Capital Employed (avg)

2.10

Tax Ratio

1.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

13.61%

ROCE (avg)

6.38%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-2.43

EV to EBIT

-44.82

EV to EBITDA

537.66

EV to Capital Employed

3.05

EV to Sales

1.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.81%

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at -14.46 times

-23What is not working for the Company

PAT(Q)

At Rs -368.60 cr has Fallen at -1552.9%

ROCE(HY)

Lowest at -0.39%

OPERATING PROFIT TO INTEREST (Q)

Lowest at -0.99 times

NET SALES(Q)

At Rs 2,422.80 cr has Grown at -5.59%

PBDIT(Q)

Lowest at Rs -182.20 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -7.52%

PBT LESS OI(Q)

Lowest at Rs -438.80 cr.

EPS(Q)

Lowest at Rs -1.73

Loading Valuation Snapshot...

Here's what is working for Sh.Renuka Sugar

Debt-Equity Ratio - Half Yearly

Lowest at -14.46 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Sh.Renuka Sugar

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -438.80 cr has Fallen at -724.81%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -368.60 cr has Fallen at -1552.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at -0.99 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

At Rs 2,422.80 cr has Grown at -5.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -182.20 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -7.52%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -438.80 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.73

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)