India Cements Ltd shares advanced over 40% in the last two trading sessions after ace investor and Avenue Supermarts founder Radhakishan Damani’s brother Gopikishan S. Damani bought 2.75% stake in the company on Tuesday.
India Cements shares were locked in a 20% upper circuit at Rs 104.45 on BSE on Wednesday afternoon after surging 17% in the previous session. The stock has jumped over 22% in the past one year compared with a 9% rise in the benchmark Nifty 50 index.
According to the bulk deals data available on the National Stock Exchange (NSE), Gopikishan S. Damani purchased 85,22,428 equity shares of India Cements at Rs 82.70 per share on Tuesday. Interestingly, Radhakishan Damani already holds a 4.73% stake in the cement company as of December 2019. He had also raised his stake from the 1.3% he held as of September 2019.
Renowned stock market analyst SP Tulsian of sptulsian.com had told CNBC-TV18 on Tuesday: “I think Radhakishan Damani is seen raising his stake in the company, which could be the only reason for the rally in the share price.”
“The enterprise value per tonne is quite low, but summer season will remain for three-four months, hence there is a good tailwind in terms of pricing and volume for cement companies. I am extremely positive on the space, but in the case of India Cements, HNI (high networth individual) buying could be the only reason,” he added.
In the recently concluded December 2019 quarter, India Cements’ consolidated net loss had widened to Rs 8.79 crore compared with a net loss of Rs 4.32 crore in the year-ago quarter. Revenue from operations had also dropped 7.9% to Rs 1,244.28 crore during the quarter compared with Rs 1,351.15 crore a year ago.
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