Shares of this small-cap cement stock hit the 5 percent upper circuit after billionaire Mr. Gautam Adani-led company plans to buy a majority stake in the company. The company has a market capitalization of Rs 2,600 crores.
The stocks of Sanghi Industries Limited started their trading session on Wednesday at Rs 100.73 apiece and, since then, the scrip is locked in the 5 percent upper circuit recorded at the same price. The locked price also emerges as the company’s fresh 52-week high mark.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of around 150 percent. It means a Rs 1 Lakh investment would have converted to Rs 2.50 Lakhs within a period of one year if someone would have invested in the stock.
Such movements in the share prices were observed after reports suggesting Ambuja Cements Limited, Mr. Gautam Adani-led company, reached a deal to acquire a majority stake in Sanghi Industries.
A couple of sources with direct knowledge commented that the above-mentioned transaction would add value to the cement operations of the billionaire’s firm. The shares of Ambuja Cements Limited are trading in the red at a price of Rs 454, a dip of 1.70 percent compared to the previous closing levels.
Ace investor Mr. Mukul Agarwal has invested in the company’s stocks. According to the June 2023 holding data, he holds a total of 50,95,490 equity shares of the company equating to a 1.97 percent stake. Currently, the holding value of his investments stands at Rs 51.32 crores.
In the past few quarters, the company has increased its revenues from Rs 133 crores during Q3FY22-23 to Rs 225 crores during Q4FY22-23. In addition, the company, though reporting net losses, reduced the numbers from Rs 143 crores of losses during Q3FY22-23 to Rs 104 crores during Q4FY22-23.
The latest shareholding pattern data exhibits the Promoters holding a 72.72 percent stake, and the Foreign Institutional Investors holding a 2.09 percent stake in the company.
Sanghi Industries Limited is involved in the business of manufacturing as well as marketing cement and cement-related products. The company’s product portfolio includes ordinary Portland Cement such as Portland Slag Cement and Portland Pozzolana Cement. It derives a majority of its revenue from domestic operations in India and also exports its products.
Written by Amit Madnani
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