Breakout Share# Shree Renuka Sugar
Shree Renuka Sugars’ share price is likely increasing due to recent favorable government policies and developments in the sugar industry. The key factors driving the share price surge include:
Government Support for Ethanol Blending: The Indian government has been promoting ethanol blending to reduce dependence on crude oil and improve the financial viability of sugar mills. The recent push towards achieving a 20% ethanol blending target by 2025 has been supported by incentives for ethanol production, which benefits companies like Shree Renuka Sugars.
Increase in Ethanol Prices: The government has recently raised the prices of ethanol derived from different sources, which directly impacts the profitability of sugar companies producing ethanol. This move is seen as a positive development for companies with a strong ethanol production capacity.
Export Policy Revisions: There have been discussions around policies related to sugar exports. Any relaxation or new measures that support increased exports would lead to higher revenues for sugar companies, thus impacting share prices positively.
Reduced Sugar Production Estimates: Lower sugar production in certain states due to climatic conditions has led to an anticipated rise in sugar prices, which benefits producers like Shree Renuka Sugars.
These factors combined have contributed to positive sentiment around Shree Renuka Sugars and other companies in the sector.
after sustaining price above 52, we can expect price to reach 59, and 65 in next coming month.
