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Here is why this cement stock has surged 40% in just 2 days

Updated : February 26, 2020 12:22 PM IST

India Cements share price has rallied over 40 percent in 2 days after Gopikishan S Damani, brother of Radhakishan Damani, bought 2.75 percent stake in the company

The stock, which rose over 17 percent in the previous session has further extended gains to hit the upper circuit (up 20 percent), today.

Gopikishan S Damani purchased 85,22,428 equity shares of the cement company at Rs 82.7 per share.

India Cements share price has rallied over 40 percent in 2 days (since February 25) after Gopikishan S Damani, the brother of ace investor Radhakishan Damani, bought 2.75 percent stake in the company on February 25.

The stock, which rose over 17 percent in the previous session has further extended gains to hit the upper circuit (up 20 percent), today.

According to NSE data, Gopikishan S Damani purchased 85,22,428 equity shares of the cement company at Rs 82.7 per share. Radhakishan Damani already holds a 4.73 percent stake in India Cements as of December 2019. He also increased his stake from the 1.3 percent he held in September 2019.

"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," SP Tulsian of sptulsian.com told CNBC-TV18.

"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 Cement, HNI buying could be the only reason," he added.

For Q3, the company reported a widening of its consolidated net loss to Rs 8.79 crore as against a net loss of Rs 4.32 crore in the same period a year ago.

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