Following this development, shares of the firm rose 6.5 per cent on the NSE
to Rs 172. From its 52-week low of Rs 69.60, the scrip has rallied over 130 per cent.
Together, Damanis hold 21.14 per cent stake in the firm as against 28.42 per cent held by the promoters.
The Damani family has been steadily increasing their holding in India Cements.
At the end of December quarter last year, the ace investor held a mere 4.73 per cent stake in the cement maker. His brother Gopikishan was not among shareholders with over 1 per cent stake in India Cements.
A Bloomberg report in June last year had said that Radhakishan Damani
is considering acquiring a controlling stake in India Cements but the firm had later denied the same. READ HERE
Meanwhile, foreign portfolio investors increased shareholding in the firm to 12.42 per cent in the December quarter from 11.95 per cent in the September quarter. Whereas, mutual funds trimmed their holding to 3.76 per cent from 3.92 per cent in the same period.
Brokerage Sharekhan has a positive view on the cement sector.
"Cement companies’ net earnings are likely to grow strongly, led by healthy volume growth and higher operational profitability," it said.
Going ahead, analysts at Emkay Global expect India Cements to post Q3 net profit of Rs 53.7 crore against a loss of Rs 54 crore posted in the same period last year. However, sequentially, the net profit is expected to fall 25 per cent.
"Volume is expected to decline 12 per cent year-on-year (YoY) while realization may improve 7.8 per cent YoY. Opex/ton may increase 2.1 per cent YoY on lower volumes. EBITDA is expected to increase 59.4 per cent YoY with 7.3 pp improvement in OPM on higher realization," said analysts at Emkay in a cement sector
The company is slated to announce its Q3 numbers on January 27, 2021.
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