Shree Cement sees post-result profit booking

Shree Cement lost 3.32% to Rs 18,864.60 at 14:51 IST on BSE, with the stock declining on profit booking after declaring good Q3 result.

The result was announced after market hours yesterday, 11 January 2018.

Meanwhile, the S&P BSE Sensex was up 70.94 points, or 0.21% at 34,574.43.

On the BSE, 64,000 shares were traded on the counter so far as against the average daily volumes of 4,000 shares in the past one quarter. The stock had hit a high of Rs 19,800 and a low of Rs 18,596.50 so far during the day. The stock had hit a record high of Rs 20,560 on 15 May 2017 and a 52-week low of Rs 14,333 on 11 January 2017.

 

The large-cap company has equity capital of Rs 34.84 crore. Face value per share is Rs 10.

Shares of Shree Cement had witnessed a pre-result rally in anticipation of good Q3 result. The stock had gained 8.04% in five trading sessions to settle at Rs 19,511.95 yesterday, 11 January 2018, from its close of Rs 18,059.15 on 4 January 2018.

Shree Cement's net profit rose 41.6% to Rs 333.33 crore on 23.1% growth in net sales to Rs 2296.23 crore in Q3 December 2017 over Q3 December 2016.

The board of directors of Shree Cement has considered and approved the acquisition of majority equity stake (minimum of 92.83%) in Union Cement Company, UAE (UCC) for an enterprise value of $305.24 million excluding cash and cash equivalent. With this acquisition, the aggregate cement capacity of Shree Cement will increase from present 29.3 million tonne per annum (mtpa) to 33.3 mtpa. The acquisition will also help it create its first footprint outside the country, it said.

Established in 1972, UCC is one of the leading cement makers in the UAE. It has operations in the Emirates of Ras Al- Khaimah in the UAE with a clinker capacity of 3.30 mtpa and cement capacity of 4 mtpa.

Shree Cement is focused on its core business of cement and power. Currently its manufacturing operations are spread over North and Eastern India.

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