InvestorQ : Why did the shares of India Cements rally so sharply in recent days?
Riya Dwivedi made post

Why did the shares of India Cements rally so sharply in recent days?

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shrinidhi Rajan answered.
4 weeks ago
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South based India Cements has been on a roll for some time and on 30 December it zoomed another 13%. In the process it touched its highest level in the last 34 months. This rally came on the back of heavy volumes in a range-bound market, making the rally a lot more credible. Trading volumes on the counter were up by more than 10-fold on Wednesday.

The rally in the counter gathered momentum after Radhakishan Damani hiked his stake in India Cements to 20.4% in the Sep-20 quarter. Damani is highly respected as one of the foremost stock pickers in India and people have not forgotten the billions of wealth that he created for shareholders through his own venture, Avenue Supermarts of D-Mart fame.

The management in its last quarter had warned that capacity overhang in South India could slow the growth of India Cements. However, the stock has picked up recently on reports of pick-up in house building and construction activity in predominantly semi-urban and urban centres. Higher public spending on irrigation, roads and other projects has also helped.

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