For SHREE RENUKA SUGAR Festival Season Around The Corner Think for Trade

SHREE RENUKA SUGAR one of my favorite stock after election. Shree Renuka Sugars is a fully-integrated sugar company, besides sugar, power generation and ethanol are also additional sources of revenue.
Net profit more than doubled from Rs.33.20 crore to Rs.78.10 crore. given the current spike in sugar prices, the company did well by offloading the inventory, making full good use of these high prices.
The topline of the company rose by an unbelievable 108% at Rs.893.50 crore. In the sugar sector, the company managed to earn an EBIT of Rs.86.30 crore (Rs.20.60 crore in Q2FY09) on a sales of Rs.585.10 crore (Rs.86.30 crore) and this was its biggest earner.
The company is expanding its refining capacity at Karnataka to 2,000 tonne per day from 1,000 tonne per day. It is also raising refining capacity in Karnataka by 1,000 tonnes per day. Both plants are expected to be commissioned by December 09'. Once both these units go on stream, company's sugar refining capacity will increase to 6,000 tonne per day, which includes the 2,000 tonne per day port-based sugar refinery at Haldia, West Bengal, and the 4,000 tonne per day refining capacity at three of its integrated sugar mills in Karnataka.
It also recently raised Rs.506 crore via QIP issue and this increased the equity capital of the company from Rs.28 crore to Rs.31.70 crore and reserves has swollen to Rs.502.30 crore.
The shortfall in sugar production is a well known fact now and prices are already up to around Rs.26 per kg in the retail sector. With festival season around the corner and despite the Govt getting imports to keep a check on the prices, we can expect realizations of sugar companies to go up further. thanks.