Even as shares of sugar companies have been showing robust growth for the past two days over expectations of good output of the sweetener in the current season of (October 2021 – September 2022), shares of Shree Renuka Sugar have been doing exceptionally well, as it touched a 52-week high of Rs 49.50 per share on Thursday.
The company’s shares jumped 17 per cent to hit fresh 52-week high today, even as it has jumped more than 35 per cent in just two sessions amid the government’s ambitious ethanol blending programme. Against Rs 35.85 apiece on the NSE on April 1, the shares rose over 36 per cent to trade around Rs 49 on Thursday.
At 13.17 pm, the share was trading at Rs 49.50 per share and was 20 per cent high from its previous close at the NSE.
Apart from expectations of good sugar production in the current season, ethanol blending push and sugar minimum support price (MSP) at Rs 31 per kg remain major triggers behind the recent rally in sugar stocks.
Ethanol blending and MSP of sugar for domestic market at Rs 31 per kg has helped the industry despite surplus sugar production, experts have said.
Domestic sugar prices are close to MSP in Maharashtra at Rs 31-32 per kg while in northern states they are at Rs 34-35 per kg.