Shares of Star Cement Ltd., one of the country’s leading cement companies with operations focused in East India, climbed over 6 percent in intra-day trade on Wednesday to hit their highest level in 52 weeks.
The Star Cement stock hit a 52-week high of Rs 116.90 in morning trade amid heavy trading volumes. The number of shares changing hands on BSE jumped more than 6 times.
Notably, the Star Cement share has risen over 8 percent in the past month and 29 percent in the past six months.
The company, which is the largest cement manufacturer in the North-Eastern region of India, reported consolidated revenue of Rs 2,221 crore in the previous financial year, registering a robust growth of 29 percent year-on-year. This was primarily on account of the new capacity ramp-up of its Siliguri grinding unit, which was commercialised in the financial year 2021.
Star Cement posted an operating profit of Rs 345 crore, up 4 percent year-on-year. The growth in operating profit was affected adversely by elevated input costs during the year. Volumes, however, grew by 29 percent year-on-year to 3.40 million tonnes per annum, led by higher demand and new capacity ramp-up during the year.
Axis Direct, in a report dated November 28, 2022, issued a ‘BUY’ rating on the stock with a target price of Rs 115, a level already hit by the stock on Wednesday.
The brokerage house said that increasing overall cement demand in the company’s key operating regions, high consumption in the Eastern and North-Eastern regions, augmenting railway infrastructure, and supportive initiatives by the proactive government would benefit Star Cement shares.
Star Cement shares are trading at Rs 112 apiece, up 1.77 percent.
