Multibagger Stock: The stock of Renuka Sugars continues to be one of the favorite segments of the bulls despite the weak sentiment in the stock market. This multibagger Chinese stock has gained in the last two trading sessions from 51.25 63.20 level, a new 52-week high and registered a rise of nearly 23 per cent in just two trading sessions. Shares of Renuka Sugars has been giving excellent returns to its shareholders in the recent session as it has given nearly 70 per cent returns to its shareholders in the last one month.
according to this Share Market Experts, the sugar stock is fundamentally strong due to the recently announced ethanol blending policy by the Government of India. This is expected to create a revenue opportunity for the sugar milling companies. However, from technical point of view, Renuka Sugars share price has given fresh breakout above Closes at 50 level and hence, the stock looks strong from both technical and fundamental point of view.
Highlighting the reason for such a strong rally in Renuka Sugar share price; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “There is a trend in sugar stocks due to the ethanol blending policy of the government, rising crude oil prices and other commodity prices, prompting the government to increase the ethanol blending target from the current 7% to 8%. Up to 20%. India currently has short supply of ethanol, thus creating a huge opportunity for sugar companies. Sugar prices have gone up a lot these days; so these two factors have contributed to The fortunes of Chinese companies have changed, explaining the increase in investor interest in Chinese stocks.”
Shedding light on Renuka Sugars share price chart pattern; Anuj Gupta, Vice President – Research, IIFL Securities said, “Renuka Sugar shares have given fresh breakout above 50 each level based on completion. So the shares have been bullish for the last two days. As the Indian government announced in its ethanol blending policy to increase its ethanol blending in petrol and diesel to over 20 per cent from the current 7-8 per cent, calls from Renuka Sugars and other sugar companies to report strong quarterly numbers over the long term. are supposed to. ,
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.