Shree Cement shares fell more than 10% to Rs 22,601 in BSE trading on Monday, following media claims that the business had reportedly dodged Rs 23,000 crore in taxes.
Last Monday, the Income Tax Department began a survey action at five cement plant facilities. Raids were carried out at the company's bases in Beawar, Jaipur, Chittorgarh, and Ajmer. The stock has dropped more than 12% in the last two trading days.
In a press release, the cement business clarified the income tax surveys, stating that the company's whole management team is giving full cooperation to the officials and that any other information circulating in the media is wrong.
We have learned that in connection with the above survey, a lot of negative information about the company and its officials is circulating in certain sections of the media." "We would like to clarify that the survey is still ongoing," the firm wrote in a June 24 news release.
On the BSE at 10.23 a.m., the stock was trading 7.3% lower at Rs 23,300. However, the stock has increased by 22% in the last year.
Shree Cement reported a 15% year-on-year (YoY) decrease in net profit in Q4 FY23, at Rs 546 crore, compared to Rs 645 crore in the same quarter last year. Sales increased 17% year on year to Rs 4,785 crore, up from Rs 4,099 crore in the same period the previous year.
In Q4FY23, total sales volume grew 10% sequentially to 8.83 million tonnes, up from 8.03 million tonnes in the previous quarter. Premium product sales as a percentage of total trade cement sales were 7.5% in the March quarter, up from 7.2% in the December quarter.
According to Trendlyne statistics, the average target price of the stock is Rs 23,765, representing a 3% increase over current market prices. The stock has a consensus recommendation of Sell from 38 analysts.
The stock's day RSI (14) is currently at 45.3. According to Trendlyne statistics, an RSI below 30 is considered oversold, and above 70 is considered overbought. MACD is at 287.1, which is higher than its Centre Line but lower than the signal line.
