Last updated: June 26, 2023, 2:05 PM IST
Shares of Shree Cement crunched more than 10 per cent on Monday after reports claimed that Rs 23,000 crore in tax evasion had been found in tax investigations at multiple locations of Shree Cement Ltd in Rajasthan, claiming it to be one of the biggest tax evasion cases to date.
Last week, the Income Tax department started a survey at five locations of the cement manufacturer. The raids took place on the company’s bases in Beawar, Jaipur, Chittorgarh and Ajmer. The stock is down more than 12 percent in the past two trading days.
Shree Cements also commented on the exchanges.
“We would like to clarify that the investigation is still ongoing. The entire management team of the company is available and fully cooperates with the officials. Any information otherwise circulating in the media is false and was published without prior input from the company,” Shree Cements said in a filing on Saturday.
In Q4 FY23, Shree Cement reported a 15 percent year-on-year (YoY) decline in net profit to Rs 546 crore compared to Rs 645 crore in the same quarter last year. Revenue for the quarter was up 17 percent year-on-year to Rs 4,785 crore compared to Rs 4,099 crore in the same quarter last year.
Total sales volume increased sequentially by 10 percent to 8.83 million tons in Q4FY23 compared to 8.03 million tons in the same quarter. The share of luxury goods sales in total commercial cement sales was 7.5 percent in the March quarter, up from 7.2 percent in the December quarter.
According to Trendlyne data, the average target price of the share is Rs 23,765, showing a 3 percent increase over current market prices. The consensus recommendation of 38 analysts for the stock is a sell.
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