⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RENUKA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.1
| Stock Code | RENUKA | Market Cap | 5,366 Cr. | Current Price | 25.2 ₹ | High / Low | 40.3 ₹ |
| Book Value | -4.35 ₹ | Dividend Yield | 0.00 % | ROCE | 9.99 % | ROE | % |
| Face Value | 1.00 ₹ | DMA 50 | 26.8 ₹ | DMA 200 | 30.2 ₹ | Chg in FII Hold | 0.12 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -319 Cr. | PAT Prev Qtr | -215 Cr. | RSI | 39.9 |
| MACD | -0.44 | Volume | 24,01,289 | Avg Vol 1Wk | 28,06,352 | Low price | 24.4 ₹ |
| High price | 40.3 ₹ | 52w Index | 4.66 % | Qtr Profit Var | -1,670 % | EPS | -3.17 ₹ |
| Industry PE | 10.3 |
📊 Core Financials
- Revenue Growth: Quarterly PAT worsened from -215 Cr. to -319 Cr., showing deepening losses.
- Profit Margins: EPS at -3.17 ₹, ROCE 9.99% — weak profitability, ROE not meaningful due to negative earnings.
- Debt Ratios: Debt-to-equity not disclosed, but negative book value (-4.35 ₹) indicates stressed balance sheet.
- Cash Flows: Likely under pressure given recurring losses and weak fundamentals.
- Return Metrics: ROCE modest, but overall returns are poor due to negative earnings.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative EPS.
- P/B Ratio: Not applicable as book value is negative.
- PEG Ratio: Not available, growth visibility unclear.
- Intrinsic Value: Current price appears speculative, not supported by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in sugar and ethanol production with exposure to agro-based industries.
- Competitive advantage limited due to commodity price volatility and weak financials.
- Dependent on government policies and cyclical demand in sugar/ethanol markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Only attractive near 20–22 ₹ for speculative investors.
- Long-Term Holding: Risky due to consistent losses and weak balance sheet; avoid for conservative investors.
✅ Positive
- Exposure to ethanol blending program could provide future demand tailwinds.
- FII holdings increased slightly (+0.12%), showing minor foreign interest.
- Stock near 52-week low (24.4 ₹), offering potential rebound if fundamentals improve.
⚠️ Limitation
- Negative EPS (-3.17 ₹) and widening losses.
- Negative book value (-4.35 ₹) indicates stressed financials.
- Weak ROE and modest ROCE (9.99%).
📉 Company Negative News
- Quarterly losses worsened from -215 Cr. to -319 Cr.
- Profit variation at -1,670% YoY highlights severe financial stress.
- DII holdings reduced (-0.05%), showing cautious domestic sentiment.
📈 Company Positive News
- Government ethanol blending initiatives could support long-term demand.
- High trading volumes indicate speculative interest despite weak fundamentals.
🏭 Industry
- Industry PE at 10.3, highlighting RENUKA’s weak position relative to peers.
- Sugar and ethanol industry remains cyclical, dependent on government policies and global commodity prices.
🔎 Conclusion
- RENUKA faces severe financial stress with negative earnings and book value.
- Valuation is speculative, not supported by fundamentals.
- Best entry zone lies near 20–22 ₹ for high-risk investors only.
- Conservative investors should avoid until profitability stabilizes.