India Cements’ shares rose 3 per cent to Rs 298.45 on Tuesday, with the stock hovering around Rs 300 level after almost 15 years. It had topped the Rs 300-mark in December 2007 and touched its lifetime high of Rs 333.
Dalal Street veteran Radhakishan Damani and associates owned 6,43,98,190 equity shares or a 20.8 per cent stake in the company as of June 30, 2022. The stake in the company is worth Rs 1,870 crore.
Shares of India Cements have jumped more than 100 per cent from their 52-week low of Rs 145.55 hit on June 20, 2022.
The stock has rallied more than 330 per cent in the last three years. From Covid-19 lows, India Cements has delivered a handsome return of 225 per cent to investors.
Cement stocks have been on the radar considering the government’s infra push and acquisition of
and by Adani Group.
Analysts said the twin acquisitions by Adani have raised hopes of more such deals in the sector as a few players are finding it difficult to pare their leverage and may be willing to exit the cement business at good valuations.
Domestic brokerage
said, “A consolidation in the industry, if it occurs, will boost pricing power, synergies in the form of cost reduction and operational efficiency; and cross-branding, which will help expand market reach.”
“The December 2022 quarter could see benefits from lower fuel prices, while January-June 2023 could see both better cement demand and prices in a seasonally strong period,” said Krupal Maniar, Analyst, Antique Stock Broking.
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