Radhakishan Damani’s investment company, Derive Investments, bought 2071580 shares of India Cements on 25th June at Rs. 86.61 worth Rs. 18 crore. Hope you all know that India Cements is run by N Srinivasan, the strongman behind the BCCI and Chennai Super Kings, the Chennai IPL Team.
Why India Cements and Cement Sector
Cement demand is likely to improve gradually with a medium term outlook in line with the recovery in infrastructure, investment cycle and overall economy. The weakness in the international crude oil prices and other commodities such as Coal that too has helped in bringing costs under control and improving profitability of the sector.
India Cements is the largest producer of cement in South India. It has established brands viz. Sankar Super Power, Coromandel Super Power and Raasi Super Power.
India Cements reported net profit of Rs 36.60 crore in Q4 March 2015 as compared to net loss of Rs 157.12 crore in Q4 March 2014. Total income fell 7.3% to Rs 1043.10 crore in Q4 March 2015 over in Q4 March 2014.
According to analysts, demand for cement is likely to improve only in FY17 when government-led projects are expected to be in execution mode.
In other news, Radhakishan Damani has bought five-star hotel Radisson Blu Resort & Spa in Alibaug, a popular coastal town around 100 km from Mumbai. Damani’s Derive Trading Pvt Ltd has acquired the 156-room property is owned by Pune-based real estate developer Phadnis Group for Rs 135 crore.