India Cements Shares Surge as UltraTech Cement Announces Stake Buy
In a surprising turn of events, India Cements shares have witnessed a significant uptrend in the last two trading sessions. The cement stock, which closed at ₹229.38 per share on Tuesday, has been on a steady rise since Wednesday. Today, India Cements share price opened with a gap up at ₹285 per share and reached an intraday high of ₹288.88, marking a remarkable 26 percent increase in just two days.
The surge in India Cements shares can be attributed to the recent announcement by UltraTech Cement, a subsidiary of the Aditya Birla group, regarding its decision to acquire a 23 percent stake in India Cements Limited. Market experts believe that this move has been perceived positively by investors, leading to the bullish trend in India Cements shares.
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained, “The rise in India Cements shares is a direct result of UltraTech Cement’s decision to buy a significant stake in the company. This development has caught the attention of investors on Dalal Street, driving up the stock price.”
Looking ahead, Sumeet Bagadia, Executive Director at Choice Broking, predicts further upside potential for India Cements shares, with a target price of ₹325 per share in the near term. He advised existing shareholders to hold onto their positions and maintain a trailing stop loss at ₹265 per share. For new investors, Bagadia suggested waiting for a potential retracement in the stock before considering entry, with a recommended buy range of ₹275 to ₹280 per share.
In an official filing to the stock exchanges, UltraTech Cement confirmed its plans to purchase up to 7.06 crore equity shares of India Cements at a price of up to ₹267 per share. This strategic investment is aimed at acquiring a non-controlling stake in India Cements, further solidifying UltraTech Cement’s presence in the cement industry.
As always, investors are advised to consult with certified experts before making any investment decisions. The recent developments in India Cements shares serve as a reminder of the dynamic nature of the stock market and the opportunities it presents for savvy investors.
