Shri Renuka Sugars

Share Brokers Private Limited

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A C Choksi

Shree Renuka Sugars Ltd

Sweet Journey Ahead

June 26, 2010

Industry Sugar M arke t Cap Rs.4440.77 crore s

Re com m e nde d Price Targe t Price Book V alue Equity(Subscribe d) BSE Code Rs. 66.3 Rs. 80 Rs.21.64 Rs.66.98 crore s 532670 Curre nt P/E Industry P/E P/BV 52 W e e k High/low Face V alue 6.68 7.95 2.59 Rs.123.60 / Rs.51.50 Rs.1

Consolidated Yearly Financials (Rs in crs) Particulars FY09 FY08 (% GROWTH)

Sales (Rs.crs) Operating Profit (OP)-Rs.crs OP Margin (%) Adjusted Net Profit -Rs.crs Adjusted Net Profit Margin (%) Earnings per share (EPS) - Rs.

Source : A C Choksi Research

Company Overview :

Shree Renuka Sugars Limited (SRSL) is an integrated manufacturing company with strategic focus on Sugar and its allied products in Power and Ethanol. The Company was incorporated on 25th October 1995, key manufacturing facility of the company is in Munoli, Athani & Havalgah, Karnataka and also SRSL operate three leased facilities at Ajara & Arag in Maharashtra and at Aland in Karnataka. SRSL has the largest sugar refining capacity in India of 4000 tons per day (TPD) across two integrated refineries (1,000 TPD each at Munoli and Athani) and a port based refinery in Haldia (2000 TPD). The acquisition of a majority stake in KBK Chem-Engineering Pvt. Ltd facilitates turnkey distillery, ethanol and bio-fuel plant solutions. SRSL also acquired a 100 KPLD distillery from Dhanuka Petrochem (Khopoli, Maharastra) that converts rectified spirit into ethanol and increased its capacity to 300 KLPD.

2815.99 2105.27 471.28 17% 222.87 8% 6.88 284.39 14% 134.14 6% 4.82

34% 66%

66%

43%

Key Positives à Successful Acquisition of Equipav will benefit the company in near future

On February 21, Shree Renuka announced that it would acquire at least 51% of Equipav by paying Rs 1,530 crore, subject to debt restructuring by Brazil's seventh largest maker of the sweetener. Now both...