Radhakishan Damani and family increase stake in India Cements, stock jumps 15% minutes before closing

By: |
May 15, 2020 5:01 PM

Ace investor Radhakishan Damani did not let his investment activity rest during the March quarter no matter what disruptions sprung up in the market.

he stock surged 15% in the last hour of trading on Friday as investors rushed to mirror the move made by the promoter of DMart.

Ace investor Radhakishan Damani did not let his investment activity rest during the March quarter no matter what disruptions sprung up in the market. The promoter of Avenue Supermarts has upped his stake in cement manufacturer India cement from 4.69% at the end of December quarter to 19.89% at the end of the March quarter. Along with Radhakishan Damani, his brother Gopikishan Damani has also invested in India Cements. The stock surged 15% in the last hour of trading on Friday as investors rushed to mirror the move made by the promoter of Dmart. The scrip ended the day’s trade at Rs 117 per share on the national stock exchange.

Radhakishan Damani bought 4.7 crore shares of India Cements between January and March, increasing his stake to 6.1 crore at the end of March from 1.4 crore at the end of December last year. Damani along with his brother had purchased a 4.2% stake in the company on March 17, helping the stock to zoom over 10% back then. Gopikishan Damani had earlier this year bought a 2.75% stake when the stock was trading at a discount of 37% from its 52-week-high.

Cement industry has taken a hit as India attempts to counter the coronavirus pandemic. “Cement companies have seen an average volume impact of ~ 90% of our coverage companies in the month of April 2020. Though the severity differs region-wise demand pick up was better in rural areas compared to urban centres. Overall pick up in activity is likely to be gradual and clarity is likely to emerge in the next 4-6 weeks,” said brokerage firm Centrum Broking . According to Centrum, the revival in demand is expected to be gradual in the cement industry. “The demand situation will continue to be very fluid in the next couple of months and clarity is likely to emerge in the next 4-6 weeks as our channel checks and interaction with few company management indicates,” it said.

Share price of India Cement has failed to replicate the movement in benchmark indices, growing 60% since January 1. India Cement saw foreign portfolio investors reducing their shareholding marginally. FPI holdings at the end of December stood at 19.66% while the same came down to 19.20% in the January-March quarter. Radhakishan Damani’s Avenue Supermarts shares trade flat on Friday as the ended the day’s trade up by 0.67% at Rs 2,340 per share. The stock staged a smart recovery from its March lows, gaining 28% since then.

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