Shares of Andhra Cement declined 4.9 percent to Rs 105.35 a piece on the BSE in Tuesday’s intraday trade as the promoter group began offloading partial stakes via an offer for sale.
At 11:20 AM, shares of the cement-producing company were off lows, down 1.3 percent at Rs 109.4 per share. The stock also hit an intraday high of Rs 118 per share. The benchmark S&P BSE Sensex was up 0.14 percent at 72,890.79 level.
According to the company’s exchange filing, Sagar Cements Ltd, the promoter entity, intended to sell the equity shares to comply with the requirements of minimum public shareholding.
Under the OFS, SCL would sell up to 5 percent of the total paid-up equity share capital of the company, aggregating to 4.6 million shares. The OFS would run between February 27 and 28.
“The aggregate Promoter shareholding, as of February 26, 2024, is 95 percent of the company’s total paid-up equity share capital. Post completion of the sale above, the aggregate Promoter shareholding in the company would be reduced to 90 percent of the total paid-up equity share capital of the company,” it said.
Shares of Sagar Cement Ltd, meanwhile, rallied 3 percent intraday to Rs 250.8 per share.
In the December quarter, Andhra Cement posted a net loss of Rs 2 lakh, down from Rs 5.74 lakh in Q3FY23. Revenue from operations came at Rs 9.79 lakh.
Sagar Cements, on the other hand, posted a net loss of Rs 10.18 crore vs Rs 23.68 crore in Q3FY23.
The company’s net consolidated total income stood at Rs 673.14 crore, clocking an increase of 14.09 percent from Rs 590.02 crore last year.
Analysts at Nirmal Bang Institutional Equities have maintained an ‘Accumulate’ rating on Sagar Cements as the management has reduced its volume guidance for FY24 from 6.2 mt earlier to 5.6 mt citing the upcoming Lok Sabha elections and state elections in Andhra Pradesh.
“Ebitda guidance for FY24 has been scaled down to Rs 3,122 million. FY25 volume guidance stands at 7 mt with Andhra Cement sales pegged at 0.9-1.0 mt. We value Sagar Cements at nine times December-25E enterprise value/EBITDA with a revised target price of Rs 299,” the brokerage said.
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