Shree Renuka Sugars acquires 100% stake in Anamika Sugar Mills for Rs 235.5 crore; stock gains

Shree Renuka Sugars

Shares of Renuka Sugar rose nearly 1 percent in early trade on October 9 post the acquisition of 100 percent stake in Anamika Sugar Mills.

At 9:34 am, the Renuka Sugar Mills stock was trading 0.24 percent higher at Rs 55.14 on the NSE.

Shree Renuka Sugars, the sugar company has completed the acquisition of 100 percent equity shares of Anamika Sugar Mills for Rs 235.5 crore. This acquisition will help company establish presence in Uttar Pradesh, one of the largest sugar producing states, and to cater to the markets of North and East India as detailed by the company in a BSE filing dated October 6.

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In the latest financial report for June 2023, Shree Renuka Sugars recorded significant growth in its net sales, which amounted to Rs. 2,214.50 crores. This marks a 15.36 percent increase compared to the same period in 2022 when the sales were Rs. 1,919.70 crores.

Also Read: Shree Renuka Consolidated June 2023 Net Sales at Rs 2,284.00 crore, up 16.95% Y-o-Y

However, the company did experience a net loss of Rs. 104.50 crore in June 2023, which was a slight decrease of 1.06 percent from the net loss of Rs. 103.40 crore in June 2022. On a positive note, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for June 2023 stood at Rs. 152 crores, showing a remarkable growth of 111.99 percent compared to Rs. 71.70 crore in June 2022.

Stock Performance

In terms of the company's stock performance, Shree Renuka sugar stock has given a return of 19.16 percent over the last six months. The benchmark Nifty50 index has given a return of 11.52 percent over the same duration.

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