in friday’s session ITD Cementation India There was a bumper rise in the shares of . The stock reached the level of ₹ 565.60 with an upper circuit of 20 percent. Since the beginning of this year till now (YTD), the stock has gained 92.03 percent. Let us know why the stock rose?
Company Fundamentals
The company started its operations in India in 1931 as a branch of The Cementation Company Ltd, UK, a member of Trafalgar House Group, London. The company provides EPC i.e. engineering, procurement and construction facilities for infrastructure projects. The market cap of the company is ₹9,716 crore. The compound annual growth rate of the company has been 26.4% in the last 5 years. The promoters hold 46.64%, while foreign investors hold 20.00%. The (P/E) ratio of the company’s stock is 25.17 while the (P/B) value is 5.42. The earning per share (EPS) is 18.73 and the return on equity (RoE) is 21.54.
Why did the stock rocket?
Actually, according to media reports, Adani Group has also participated in the race to buy the promoters’ stake in the company. The company had informed the exchange on July 3, 2024 that the promoters want to sell their stake. According to the news, Adani can buy 46.64% stake for ₹ 5,888.57 crore. The name of KEC International is also being considered to buy the promoters’ stake.
The counter witnessed heavy trading volumes on the BSE during the day, with around 6.30 lakh shares exchanging hands. This is much higher than the two-week average volume of 71,000 shares. The stock was trading above the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMA). The 14-day Relative Strength Index (RSI) of the counter is at 61.91. A level below 30 is considered oversold and a value above 70 is considered overbought.
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