As per reports, Radhakishan Damani, the promoter of Avenue Supermarts, that runs the supermarket chain D-Mart, is considering acquiring a controlling stake in India Cements.
The report says that Damani has formally reached out to N Srinivasan to explore a takeover.
Meanwhile, BSE has sought clarification from the company regarding the takeover buzz and the reply is awaited.
Analysts at Centrum Broking, however, had retained the "Sell" rating on the stock post the development with the target price of Rs 55, saying the fundamentals of the company remain weak and the investor action (Damanis) has triggered the stock's valuations.
India Cements' fundamentals continue to be weak and will remain weak given the current challenging environment. However, the investor action of the increasing stake from 4.73 per cent (end-3QFY20) to nearly 20 per cent by 4QFY20 by a prominent investor has kept the valuations elevated, the brokerage had said in a note dated May 18.
"We continue with our earlier estimates of cut in the volumes of nearly 18 per cent /10 per cent in FY21/FY22. Our earnings estimates are also unchanged with the earnings before interest, taxes, depreciation, and amortisation (EBITDA)/tonne expected to hover nearly Rs 600/tn and the EBITDA downward revision by nearly 27 per cent/15 per cent for FY21/FY22 stays intact. Our take on more severe fall in earnings due to higher debt servicing at 92 per cent / 47 per cent for the same period also continues," Milind Raginwar, an analyst with the brokerage firm had written in the report.
is scheduled to announce its results for the quarter and fiscal year ended March 31, 2020 on June 23. The stock had hit a 52-week low of Rs 67.90 on August 23, 2019.