Sh.Renuka Sugar (RENUKA)
FairStock Score: 3/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹21.95 |
| Market Cap | ₹4,672.04 Cr |
| P/E Ratio | 0 |
| ROCE | 10.64% |
| ROE | 196.37% |
| Dividend Yield | 0% |
| Profit Growth | -0.23% |
| Debt/Equity | — |
| Sales Growth | 3.48% |
| Promoter Holding | 62.48% |
| 52-Week Range | ₹17.81 — ₹30.82 |
| Sector | Agricultural Food & other Products |
| Book Value | ₹-12.49 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Looking at Sh.Renuka Sugar, I see a business that fails my first test: a sound financial foundation. The book value is negative at ₹-10.89 per share, meaning liabilities exceed assets. A company with negative net worth cannot be valued using price-to-book; the P/E of 0.00 is meaningless because there is no positive earnings power. In the latest quarter, despite ₹2,273 Cr of sales, the company lost ₹38 Cr. Add a 12.67% decline in sales, and I see a cyclical sugar operation struggling to stay profitable. The reported ROE of 196.37% is a mathematical illusion caused by negative equity, not evidence of a wonderful business. ROCE of 10.64% is modest at best, and with zero dividend yield, shareholders are not being paid to wait. The Piotroski F-Score of 6/9 is the only faint positive, but that is a short-term check, not a margin of safety. Promoter holding of 62.48% does align management with shareholders, but alignment cannot offset negative book value. The FairStock score of 13/100 matches my instinct: this is risky. Sugar is a commodity business, likely to remain cyclical, with little durable competitive advantage. I look for cigar-butt bargains, but a negative book value company with a quarterly loss is not a cigar butt with one puff left—it is a matchstick already burned. I would not anchor on the 52-week range of ₹21.06 to ₹33.50; a low price is not the same as value. In Graham's language, price is what you pay, value is what you get. Here, I cannot find a reasonable value. I would need to see positive net worth, meaningful profits, and sustained cash generation before I could consider this a potential investment. Until then, Renuka Sugar belongs on the 'too hard' pile.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer