Stock Crash: Rana Sugars'(NSE: RANASUG) share fell in early trade after SEBI’s action. It was trading at Rs 21.53, down 7.80 percent.
The biggest reason for this sugar stock’s fall is SEBI’s strict action, in which Rana Sugars and its promoters and officials were banned from the securities market for two years.
Rana Sugars’ share opened at Rs 21 today, touching Rs 22.20 before coming down to Rs 20.30. This stock has fallen by more than 11 percent in five days.
It has fallen by about 15 percent in the last month and more than 8 percent in six months. However, this stock has returned more than 880 percent in the last five years.
This stock’s 52-week high and low are Rs 30.40, and Rs 18.20 respectively.
An Additional Fine Of Rs. 63 Crore Has Also Been Imposed
SEBI also fined Rs 63 crores for the misappropriation of funds.
SEBI also banned Inder Pratap Rana (promoter, managing director), Ranjit Rana (chairman), Veerpratap Rana, Karan Pratap Rana, Gurjit Singh Rana, Rajbans Kaur, Preet Inder Singh Rana, and Sukhjinder Kaur for holding directorships or any other management level position in any listed companies for 2 years.
An investigation revealed that Rana Sugars Limited did not disclose Laxmiji Sugars Mills Company in the financial period 2016-17. The company failed to disclose FTPL, CAPL, RJPL, RGSPL, JABPL, and RGSPL as related parties.
SEBI imposed fines of between Rs 3 crore and Rs 7 crore on Rana Sugars’ promoters, employees, and other parties. SEBI has determined that Indra Pratap Ranjit Singh Rana is the person in charge of the affairs at Rana Sugars.
Hence, Rana Sugars, Indra Pratap Ranjit Singh, and Veer Pratap Singh Rana have violated LODR rules.
In the final order of SEBI, the Chief General Manager G Ramar stated that he found the notices who are the promoters of RSL and the beneficiaries of the manipulation of funds by RSL to have violated PFUTP(Prohibition of Fraud and Unfair Trade Practices).
The order also states that Chief Financial Officer Manoj Gupta was among the violators of the PFUTP. Gupta used to sign the manipulated financial information of RSL.
Rana Sugars Stock Performance
| Market Cap | ₹ 332 Cr. |
| Current Price | ₹ 21.6 |
| 52wk High | ₹ 30.4 |
| 52wk Low | ₹18.0 |
| 5 days Return | -10.68% |
| 1 Month Return | -14.64% |
Company’s Fundamentals
| Stock P/E | 22.9 |
| Book Value | ₹ 35.2 |
| Dividend | 0.00 % |
| ROCE | 7.06 % |
| ROE | 5.46 % |
| Face Value | ₹ 10.0 |
| P/B Value | 0.60 |
| OPM | 4.46 % |
| EPS | ₹ 0.94 |
| Debt | ₹ 415 Cr. |
| Debt to Equity | 0.77 |
Rana Sugars Shareholdings
| Promoters | 22.64% |
| FII’s | 0.01% |
| DII’s | 0.00% |
| Govt. | 1.66% |
| Public | 75.69% |
Last 5 Years’ Sales (Figures in Rs. Crores)
| Year | Sales |
| 2020 | 1,313 |
| 2021 | 1,222 |
| 2022 | 1,400 |
| 2023 | 1,627 |
| 2024 | 1,555 |
Last 5 Years’ Net Profit (Figures in Rs. Crores)
| Year | Net Profit |
| 2020 | 266 |
| 2021 | 158 |
| 2022 | 85 |
| 2023 | 63 |
| 2024 | 14 |
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