Sanghi Industries shares fall over 9% as Ambuja Cement to divest stake

In a regulatory filing, Ambuja Cements said it will sell the 2% equity in the open market from March 13, 2024, till February 6, 2025, or the actual date of completion of the sale of shares. The total equity amounts to 51.66 lakh shares.

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In August last year, Ambuja Cements had acquired a 56.74% stake in the Gujarat-based cement company at an enterprise value of Rs 5,000 crore.

Sanghi’s cement factory in the Kutch region of Gujarat is the country’s largest single-location cement and clinker unit by capacity. The acquisition also included a captive jetty and a power plant to help Ambuja smoothly transport the commodity to the coastal parts of Maharashtra, Karnataka and Kerala.

At 11:43 am, the scrip was trading 9.4% lower at Rs 98.7 on BSE. Meanwhile, the stock has declined 22% in the last three months, whereas it has rallied nearly 120% in the past two years.

As per Trendlyne data, the average target price of the stock is Rs 155, which shows an upside of 57% from the current market prices. The consensus recommendation from one analyst for the stock is a 'Strong Buy'.

In terms of technicals, the relative strength index (RSI) of Sanghi Industries stands at 34.2, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.9, indicating low volatility in a year.

Sanghi Industries is currently trading lower than its 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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