India Cements hits 20% upper circuit after Damani brothers pick up stake

BENGALURU:

India Cements shares

hit the upper circuit of 20% after Avenue Supermarts founder Radhakishan Damani and his brother Gopikishan Damani, bought a 3.8% per cent stake, increasing the

Damani brothers

' stake in India Cement to 11.51%.


As per bulk deal data available on the exchanges, Radhakishan Damani bought 27.25 lakh shares (0.9% equity) in

India Cements

and Gopikishan 85.22 lakh shares (2.7% equity).

Radhakishan Damani has been steady increasing his stake - he held 1.3% stake last September, which he increased to 4.73% stake in December 2019.

India Cements swung to a third-quarter loss of loss of Rs 5.40 crore from a profit of Rs 3 crore the previous year after its total income fell 4% to Rs 1,194 crore.

"We expect cement sector margins to be strong in 4QFY20 as price hikes have resumed in CY20 (after trending down in 2HCY19) and costs have been declining," said analysts with Motilal Oswal Securities. In its report, Motilal Oswal indicated a preference for companies like Ultra Tech and JK Cement, which had higher exposure to North and Central India - than South-based companies like India Cements -- as "cement prices in South are down by 5% year-over-year on account of a high base."

Shares of the India Cements, hit a 7-month high on Wednesday, and closed at Rs 104.60 on BSE. The stock has underperformed the market in the last one year - having gained just 2% over benchmark Nifty50 index advance of 9%.