Shares of Orient Cement rose sharply in Wednesday’s trade, extending their gains for the second straight session amid heavy volumes. The stock jumped 12.27 per cent to hit a day high of Rs 148.70 over its previous close of Rs 132.45. At today’s high level of Rs 148.70, the scrip has gained 21.29 per cent in two consecutive days after a report of Adani Group seeking a stake in the cement manufacturer.
However, the shares limited their today’s gains after the company, in an exchange filing, said it is not privy to any such discussion and can’t comment on the same. It hit a day low of Rs 136.05.
BSE had sought clarification from Orient Cement with reference to a report of “Adani Group In Talks To Buy Promoter Stake In Orient Cement.”
A total of 10.47 lakh shares changed hands today on BSE with a turnover of Rs 14.87 crore. The company’s market capitalisation (m-cap) stood at Rs 2,841.53 crore. There were 1,31,213 sell orders against buy orders of 87,059 shares.
The counter was last seen trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The 14-day relative strength index (RSI) came at 73.24. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 18.74.
Also Read: Reliance Industries at Rs 3,250? What UBS, others say ahead of December quarter results
On a yearly basis, the stock has slipped 11.12 per cent, underperforming the 30-share BSE index’s 1.83 per cent climb. The scrip hit a 52-week high of Rs 184 on February 7, 2022.
On the earnings front, Orient Cement reported a net loss of Rs 9.49 crore for the second quarter (Q2) that ended September 2022. The C K Birla group firm logged a net profit of Rs 56.88 crore in the July-September period in 2021.
Revenue from operation was marginally up at Rs 615.28 crore as against Rs 613.12 crore in the year-ago period. Total expenses in the September quarter were Rs 630.19 crore, up 18.8 per cent from the year-ago period.
As on September 30, 2022, the promoters held a 37.90 per cent stake in Orient Cement.
“Orient Cement looks bullish but also has got into an overbought zone. Investors should book profits at current levels and wait for a dip near support levels of Rs 118-120 to buy. Rs 140 remains a strong resistance,” said A R Ramachandran from Tips2trades.
Orient Cement has a strong balance sheet with growth levers in place, Yes Securities said in a report in November last year.
“Orient Cement commands a major presence in West/South & Central markets, armed with an 8.5MTPA cement capacity (5.5MTPA clinker). Further, a 3MTPA expansion project in Maharashtra & Telangana is in pipeline and expected to be commissioned by FY24E enhancing the access to Chhattisgarh, Maharashtra & South MP markets, thereby diversifying its geographical presence & enabling logistical optimization,” the brokerage stated.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also Read: AMFI stock rejig: Tata Elxsi, Varun Beverages move to largecap category; KPIT Tech in midcap list
