The shares of Orient Cement shot up 21% in the past two days amid news that the Adani Group is eyeing a stake in the company. Its shares shot up from ₹ 123 levels to reach a high of ₹ 148.70 on Wednesday.
The news appeared on www.tradingview.com dated January 3, 2023 quoting “Adani Group in talks to buy promoter stake In Orient Cement.” Meanwhile, the Bombay Stock Exchange (BSE) sought clarification regarding the news.
Orient Cement in an exchange filing dated January 04, 2022, said, “With regard to the captioned news item, we wish to state that the Company is not privy to any such discussion, and therefore cannot comment on the same. We further wish to clarify that at present there is no material information/ announcement, including impending announcement, which in the opinion of the Company may have a bearing on the price/ volume behaviour of the scrip.”
As a result, the company’s shares fell to ₹ 141.75 apiece at 11:32 AM on Wednesday. 9,19,638 shares changed hands on the BSE, while 1,16,49,338 shares changed hands on the NSE by 11:34 AM on Wednesday.
Orient Cement is a small-cap company with a market capitalisation of ₹ 2698 crores. It has an ideal return on equity of 18.60% and an ideal debt-to-equity ratio of 0.28. Its shares were trading at a price-to-earnings ratio of 18.60, which is lower than the industry P/E of 20.72, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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