Amid strong fourth-quarter results, the shares of the Orient Cement hit a fresh 52-week high, surging for over 10 per cent to Rs 133.7 per share on the BSE in intraday trade on Tuesday.
On the back of healthy operational performance, the company’s net profit rose two-fold in the March-ended quarter of the financial year 2020-21 to Rs 99.88 crore versus Rs 44.07 crore in Q4FY20.
The cement maker’s revenue grew by 27.1 per cent year-on-year basis at Rs 832 crore. While EBITDA margin improved by 530 basis points (bps) YoY and 174 bps QoQ to 24.4 per cent.
After touching a new high during early trade today, the stock mostly traded around Rs 125-127 per share levels. It closed over three and a half per cent higher to Rs 126 per share on the BSE as compared to Rs 122 per share the previous day close.
Orient Cement said, the manufacturing facilities of the company were temporarily shut down during the start of the current year amid the outbreak of the Covid-19 pandemic and consequent lockdown imposed by the government.
It also added that the sales volume of the current year is impacted, although cement demand has been progressively recovering over the year with improved prices.
Zee Business Managing Editor Anil Singhvi earlier in April had urged the investors and traders to add this stock to their portfolio as it being an excellent company with strong fundamentals. Being bullish on the sector, Singhvi had said, the last few quarters’ results are impressive for cement companies.
Ace investor Rakesh Jhunjhunwala also holds a 1.22 per cent stake in Orient Cement. While Shree Cements managing director had bought 11.4 lakh shares of the company on April 13, taking his stake to 5.33 per cent in the company, according to Zee Business Research Analyst Ashish Chaturvedi.