Prism Johnson hit an upper circuit of 10% to Rs 48.50 after the company said its board approved divestment of its entire 51% stake in Raheja QBE General Insurance Company.
Prism Johnson on Monday (6 July) said its board approved divestment of its entire holding of 51% of the paid-up equity share capital in Raheja QBE General Insurance Company, a material subsidiary. The stake will be sold for an aggregate consideration of Rs 289.68 crore to QORQL, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications).Meanwhile, the company separately announced on Monday (6 July) that it has agreed to acquire an additional 35,00,000 equity shares at Rs 37 each, aggregating to Rs 12.95 crore, constituting 35% in the total paid-up equity share capital of Sanskar Ceramics. The company presently holds 15% of the paid-up equity share capital in Sanskar. Subsequent to the aforesaid investment, the shareholding of the company in Sanskar would increase to 50%. Sanskar is engaged in the business of manufacturing of ceramic tiles at Morbi in Gujarat.
The firm said on Friday (4 July) that it continues to tightly manage its cash flows, keeping enough liquidity in hand and making sure that working capital limits remain majorly undrawn. The liquid investment balance at the end of Q1 June 2020 was more than Rs 470 crore. During Q1, the net debt was reduced by about Rs 275 crore at standalone level. Certain loan installment which were due in later part of FY 20-21 and FY 21-22 were prepaid during the last quarter. The company added that it continues to explore its strategy of pre-payment/refinancing of loans well in advance. These measures would enable it to optimize interest cost and take care of loan obligations upto March 2022.
On the technical front, the stock's RSI (relative strength index) stood at 63.774. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading between its 50-day moving average (DMA) placed at 38.97 and its 200-day moving average (DMA) placed at 57.38.
On a consolidated basis, Prism Johnson reported net loss of Rs 45.52 crore in Q4 March 2020 compared with net profit of Rs 41.49 crore in Q4 March 2019. Net sales skid 15.6% to Rs 1,463.15 crore in Q4 March 2020 over Q4 March 2019.
Prism Johnson (earlier known as Prism Cement) is one of India's leading integrated building materials company, with a wide range of products from cement, ready-mixed concrete, tiles, bath products to kitchens.
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