Emami rose 2.31% to Rs 308.05 after media reported that UltraTech Cement has emerged as the front-runner to buy the cement business of Emami Group in an all-cash deal worth Rs 6,500-7,000 crore.
According to reports, the sale of Emami Cement has entered the final binding bid round, with Ambuja Cements, part of the LafargeHolcim Group, as the only other contender. The purchase of Emami Cement will help UltraTech make deeper inroads into eastern India and further consolidate its leadership of the domestic market, reports added.Emami Cement is among the leading cement manufacturing companies in Eastern India. It established an installed manufacturing capacity of 5.60 million metric tonne per annum ("MMTPA") in our first two years of commercial operations.
Shares of Ultratech Cement were down 0.21% at Rs 4,105.75 on BSE.
The Nifty 50 index was up 7.70 points or 0.06% at 12,279.50.
In the past one month, Emami fell 2.31% to its current market price of Rs 308.05, outperforming the Nifty FMCG index which lost 2.42% in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 45.810. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading below its 50-day moving average (DMA) placed at Rs 318.18 and 200-day moving average (DMA) placed at Rs 337.07. Both these levels would serve as resistance levels in the upcoming trading sessions.
Emami's consolidated net profit rose 16.1% to Rs 96 crore on 5.1% rise in net sales to Rs 660.05 crore in Q2 September 2019 over Q2 September 2018.
Emami is a fast moving consumer goods company. The firm is engaged in providing ayurvedic medicinal products and cosmetic and toiletries. It operates in the personal and healthcare segment.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
