Intraday spotlight: This sugar stock under Rs 50 has hit the upper circuit of 20 per cent today

The company is the leading gainer in the A group.

Shree Renuka Sugars Ltd, a smallcap sugar stock, has hit the upper circuit of 20 per cent today from its previous close of Rs 41.25. The stock opened at Rs 43.60 and has made its day high and fresh 52-week high as well of Rs 49.50. As of 11:50 am today, the stock was trading near Rs 49.05 on the BSE. It had rallied even yesterday by over 10 per cent. 

With Sensex taking a dip for two consecutive days primarily due to rate hikes anticipation, this sugar producing company has been trending toward a strong sectoral outlook. The sugar industry as a whole is trending due to robust exports. Also, the government has extended the date for loan disbursement for domestic ethanol projects. This extension is in line with boosting ethanol production in the country. For the latest quarter ended December, the revenue grew by 45.12 per cent YoY to Rs 2,014 crore and the net profit grew by 130.7 per cent YoY to Rs 43.3 crore.      

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. The company manufactures fuel grade ethanol that can be blended with petrol. The company also produces power from bagasse (a sugar cane by-product) for captive consumption and sale to the state grid in India and Brazil. 

The stock has a 52-week high and low of Rs 49.50 and Rs 9.40, respectively.