Shree Renuka Sugars Ltd.
ISIN: INE087H01022 • Market Cap: ₹5,159 Cr
The 5-Pillar Quality Audit for Shree Renuka Sugars Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (0.3%), Return on Capital Employed (25.6%), and equity compounding (17.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is -2.25 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.3%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.5%, backed by 11.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 25.6%)
Shree Renuka Sugars Ltd. generates exceptional return on capital employed of 25.6%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: -2.25)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 1.3%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking RENUKA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 55/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare RENUKA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Shree Renuka Sugars Ltd. (RENUKA)Current | 55/100 | ₹5,159 Cr | — | 25.6% | -2.25 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Shree Renuka Sugars Ltd.
Q:What is the 5-Pillar Fundamental Score for Shree Renuka Sugars Ltd. (RENUKA)?
Shree Renuka Sugars Ltd. has a RupeeTools Fundamental Score of 55/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (63/100), Financial Health (77/100), Growth (40/100), Valuation (15/100), and Ownership Quality (68/100).
Q:Is RENUKA fundamentally strong for long-term investment?
RENUKA currently holds a moderate quality rating of 55/100. While it operates in the Fast Moving Consumer Goods sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does RENUKA pass the Coffee Can Investing filter?
Yes! RENUKA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does RENUKA compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, RENUKA trades at a P/E of — and generates an ROCE of 25.6%. Compare its 5-Pillar score of 55/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.