Shree Cement rises after Q2 PAT jumps 68.5% YoY

Shree Cement rose 1.44% to Rs 23,204.05 after consolidated net profit jumped 68.5% to Rs 527.87 crore on 8.2% rise in net sales to Rs 3,249.93 crore in Q2 September 2020 over Q2 September 2019.

The cement maker's profit before tax soared 79.6% year on year to Rs 729.51 crore in Q2 September 2020 from Rs 406.1 crore in Q2 September 2019. Total tax expense were steeply higher at Rs 201.64 crore in Q2 September 2020 from Rs 92.80 crore in Q2 September 2019.

The company believes that pandemic is unlikely to impact on the recoverability of the carrying value of its assets as at 30 September 2020. As the situation of pandemic is still continuing, the extent to which the same will impact company's future financial results is currently uncertain and will depend on further developments.

On the technical front, the stock's RSI (relative strength index) stood at 67.864. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock trades above its 50-day moving average (DMA) placed at 20615.58 and its 100-day moving average (DMA) placed at 21,289.35. These levels will act as crucial support zones in near term.

Shree Cement is primarily an Indian cement manufacturer. It also produces and sells power under the name Shree Power and Shree Mega Power.

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