Buy Shree Renuka Sugars

Buy Shree Renuka SugarsTechnical analyst Rakesh Bansal of New Age Wealth is of the view that investors can 'buy' Shree Renuka Sugars Ltd stock with target of Rs 65.

According to analyst, the interested investors can purchase the stock with stop loss of Rs 55.

The stock of the company, on May 27, closed at Rs 55.10 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 123.60 and a low of Rs 53 on BSE.

As per reports, the discussion between Shree Renuka and Brazil's Equipav Group whereby the former decided to get hold of majority stake of 51% stake the latter, have fallen through.

Reports also said that there are two other prospective bidders in the line for buying the Brazilian sugar major. US-listed Bunge and Hong Kong-based diversified commodities trading group Noble Group have begun discussions with the Equipav management for buying stake in it.

In the meantime,, Shree Renuka is said to have changed its previous offer for the equity stake in Equipav by least a 25%.

In November 2009, Shree Renuka Sugars purchased another Brazilian sugar and ethanol manufacturer, Vale Do Ivai Acucar E Alcool, for Rs 1,110 crore.

During the three month period ended March 2010, Shree Renuka Sugars' net profit zoomed 712.90% to Rs 195.90.