Shree Renuka Sugars share price dips: Buy, Sell or Hold?

Shree Renuka Sugars Share Price NSE: Shree Renuka Sugars Limited, NSE: RENUKA dipped around 3 per cent on Tuesday, December 20. The sugar stock opened flat at Rs 62.60 apiece on NSE. At 12:20 AM, the stock quoted Rs 62.05 and has been volatile.

Earlier on Monday, sugar stocks climbed on D Street in the backdrop of the GST Council's decision to reduce the tax rates on Ethyl alcohol from 18 per cent to 5 per cent, supplied to refineries for blending with motor spirit (petrol).

Ravi Singh, Vice President and Head of Research at Share India, said that Shree Renuka Sugars is witnessing profit booking after the effect of GST cut on ethanol by the government. He said that the sugar stocks have a positive outlook on account of the increasing export quota in FY23.

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"The stock of Renuka Sugars may rebound after some minor correction for the target of 70 levels in the near term," he added.

Ravi Singhal, CEO of GCL said that the sugar stocks are rallying after news of the GST cut. He said that it is more beneficiary for oil marketing companies. This cut will also help the government to achieve 20 per cent mix of ethanol in petrol and will lead to an increase in revenue.

He recommended a 'buy' on Shree Renuka Sugars for a target price of Rs 120 with a stop loss of Rs 49.

Shree Renuka Sugars Price History

Shree Renuka Sugars has delivered a stellar return of around 50 per cent in the last 6 months, resulting in wealth gain for investors. YTD, Shree Renuka Sugars has yielded a positive return of 101 per cent. Putting into perspective, Shree Renuka Sugars stock which was available for Rs 30.40 apiece on January 3, is now available at around Rs 61.

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