Manishji: I am holding 1,64,000 shares of shree renuka. Bought in different lots starting with 14.80, 31, 11.60 and 7.80. Risk involved in Shree Renuka is poor results which is because of recession in international market. Also leveraged buying of operations at Brazil could not reward the company because of adverse scenerio in Brazil as well as international sugar market. ICE Future which is bench mark of global sugar market was at peak of 31 C/lb when Shree Renuka bought tow mills in Brazil. But poor market and continued surplus in sugar sector for consecutive 5 years put Shree renuka to near bankrupt situation. Debt was restructured by sale of equity to Singapore based Wilmar International. But this was inadequate and its capital started eroding.
Only silver line here is because of all these adverse scenario, Shree Renuka's price hit the bottom and now with ICE future again on rising trend, bright future is ahead. With huge operational leverage Shree Renuka is likely to generate enough cash flow to turn around.
In coming time we might see Shree Renuka touching new highs.
Sugarbull
)