Shree Renuka Sugars Limited

Consumer Defensive — Confectioners · NSE

₹22.24+₹0.01 (+0.04%)

DalalBaazaar Score

21 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Shree Renuka Sugars Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Renuka Sugars Limited manufactures, refines, and trades in sugar in India and internationally. It operates through Sugar-Milling, Sugar-Refinery, Trading, Co-Generation, Distillery, Engineering, and Other segments.

IndustryConfectioners

SectorConsumer Defensive

Employees2,144

Annual revenue₹9,160 Cr

How does it make money?

Turns over ₹9,160 Cr a year. Of every ₹100 of sales, about ₹-9 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 2,144 employees supports ₹4.27 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.27 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -27.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved +295% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect+295%

DalalBaazaar Score

21/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

21/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

6612.2x

PEG

—

Red Flags

9 items require attention · 4 high · 5 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹792 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.3 points, from 7.3% to 0.0%.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.5x to -0.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹278 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 36% against revenue up 2% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.48 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 7.3% to 0.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3999.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 36% against revenue up 2%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 0.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -2%✓ 0.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3999.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹278 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.3x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 0.6% CAGR
Latest reported year was 5.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

3 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

0 good · 5 neutral · 6 weak

Market Cap

₹4,734 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-3.66

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-27.3%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

5.5%

Modest

Modest growth

Profit Growth (YoY)

-164.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹278 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

-5.2x

Operating Margin

-5.6%

Weak

Thin margins leave little room for error

Net Margin

-8.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.48

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.25

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

22.5 / 23.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,007 Cr	₹11,300 Cr	₹10,589 Cr	₹9,160 Cr	+0.6%
EBITDA	₹659 Cr	₹641 Cr	₹338 Cr	₹2 Cr	-86.0%
EBITDA Margin	7.3%	5.7%	3.2%	0.0%	—
PAT (Net Profit)	-₹197 Cr	-₹627 Cr	-₹300 Cr	-₹792 Cr	—
EPS	₹-0.93	₹-2.95	₹-1.41	₹-3.72	—
ROCE	15.8%	17.0%	20.6%	-27.3%	—
Total Debt	₹5,569 Cr	₹5,794 Cr	₹5,889 Cr	₹7,174 Cr	+8.8%
Free Cash Flow	₹526 Cr	₹738 Cr	₹759 Cr	-₹278 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.6% a year).

🔴 EBITDA has shrunk at 86.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.3% to 0.0% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 15.8% to -27.3% over 3 years (-43.1 pts).

🔴 Total Debt has grown at 8.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹526 Cr to -₹278 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,412 Cr

Total Liabilities

₹10,089 Cr

Cash & Equivalents

₹46 Cr

Operating Cash Flow

-₹122 Cr

Capex

-₹156 Cr

Shareholding (proxy)

Institutional Holding

8.6%

Insider Holding

62.6%

Corporate Actions

Ex-Dividend Date

19 Aug 2013

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Balrampur Chini, Renuka Sugars, Triveni Eng & More; Ethanol & Sugar Stocks Rally After Excise Duty Cut; Why

Goodreturns, 17 Oct

Shree Renuka Sugars Ltd. Share Price: 8.7% Gain Analysis

Univest, 20 Aug

ICICI Bank sells 2.17% stake in Shree Renuka Sugars

scanx.trade, 21 Aug

Sugar stocks rally! How Balrampur Chini, Triveni Engineering, Shree Renuka Sugars, other stocks performed this week?

The Economic Times, 22 Aug

Balrampur Chini, Shree Renuka Sugars to Mawana Sugars: Sugar stocks rise up to 11%. Do you own any of these?

Livemint, 31 Aug

Shree Renuka Sugars Reports Q1 Consolidated Net Loss Of ₹252 Crore Vs ₹260 Crore YoY

Sahi, 05 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Shree Renuka Sugars Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑