JK Cement share price tumbles 5% day after company announces to foray into the paints business
JK Cement Share Price: The company informed that it has purchased 60 per cent stake in Rajasthan-based Acro Paints in a Rs 153 crore deal.
JK Cement Share Price: Shares of JK cement cracked nearly 5 per cent today, December 23, a day after the company announced its foray into the paints business. The company informed that it has purchased 60 per cent stake in Rajasthan-based Acro Paints in a Rs 153 crore deal.
The stock quoted Rs 2874.60 apiece on NSE, down 5 per cent from previous close of Rs 3039.45, tracking weak sentiments in the domestic equity market.
Brokerage firm Jefferies in its report maintained a buy call on JP Cement even as it noted that the decision to enter into the paint business will be challenging.
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In another report, brokerage firm Citi said that JK cement is in-line with its plan to invest Rs 600 crore over 5 years into the paint business. Further raising concern, the report said that there is elevated and rising competitive intensity is an issue and execution will be key.
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