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

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You can not start a new thread on a company by just writing few lines. You need to put up your work on the company with all the figures. Also you have put one sided story. The other side(key risks) of the story is missing. Also you have not disclosed your holding in the stock which is a must for the topic starter. Please put up the balanced story, your holding in the stock and oblidge. Not doing so may lead to deletion of the thread. Please read the rules and regulations of the forum and strictly follow the same.

I agree. Interpretations might still be different even after adopting the points you stated. But following above 2 points, I personally am positive about stocks like Repco despite discussion on valuations.

Discl: Don’t hold Repco at this moment. Have had it in the past. Intend to buy again. Positively biased on home finance. Hold Canfin in the same sector (21-22% of the portfolio).