Prism Johnson shares rally 6% after acquiring Sunbath Sanitary; details

Prism Johnson’s share price rallied 5.69 per cent at Rs 170.70 per share on the BSE in Friday’s intraday trade. This came after Prism Johnson entered into a shareholders agreement with Sunbath Sanitary for an investment of Rs 18.72 crore through the subscription of equity shares. 

“The arrangement will help the company with uninterrupted supply of sanitaryware in a continuous growing market at a competitive price. Since completion of this transaction, Sunbath has become a Joint Venture of the Company, wherein the Company holds 50 per cent of equity share capital on a fully diluted basis,” Prism Johnson said in an exchange filing on Thursday. 

 

Sunbath Sanitary is engaged in manufacturing sanitaryware in Morbi, Gujarat.

For the April-June of financial year 2024-25  (Q1FY25), the company’s net sales stood at Rs 1,763.15 crore in June quarter, down 9.22 per cent from Rs 1,942.15 crore in the same quarter of the previous year. The quarterly net loss was at Rs 10.56 crore in Q1FY25, a reduction of 159.03 per cent from Rs 17.89 crore in the corresponding quarter of last year. 

Earnings before, interest, tax, depreciation and amortisation (Ebitda) is Rs 146.23 crore in June 2024, down 11.95 per cent from Rs 166.08 crore in June 2023.

The company has a total market capitalisation of Rs 8,305.38 crore. Its shares are trading at a price to earnings multiple of 45.28 times with an earning per share of Rs 3.57, according to the data available at BSE. 

At 11:27 AM; the share price of the company was trading 2.51 per cent higher at Rs 165.55 per share on the BSE. By comparison, the BSE Sensex was up 0.11  per cent at 81,142 levels.

Prism Johnson Limited, formerly known as Prism Cement Limited (PCL), operates primarily in three business segments: Cement, Tile and Bath (HRJ), and Ready Mixed Concrete (RMC). Incorporated on March 26, 1992, under the name Karan Cement Limited and promoted by the Rajan B. Raheja Group. Its cement manufacturing facility, located in Satna, Madhya Pradesh, has a capacity of 7 MTPA.