Shares of Shree Cement cracked over 10 per cent on Monday after reports claimed that Rs 23,000 crore in tax evasion has been found in tax searches at multiple locations of Shree Cement Ltd in Rajasthan, claiming it is one of the biggest tax evasion to date.
The Income Tax department, last week, initiated a survey action at five locations of the cement manufacturer. The raids took place at the company’s bases in Beawar, Jaipur, Chittorgarh, and Ajmer. In the last two trading days, the stock has plunged over 12 per cent.
Shree Cements also issued a clarification on the exchanges.
“We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company,” Shree Cements said in a regulatory filing on Saturday.
In Q4 FY23, Shree Cement reported a 15 per cent year-on-year (YoY) drop in net profit at Rs 546 crore compared with Rs 645 crore in the same quarter last year. Sales for the quarter rose 17 per cent YoY to Rs 4,785 crore compared with Rs 4,099 crore in the same quarter last year.
Total sales volume increased 10 per cent sequentially to 8.83 million tonnes in Q4FY23 compared with 8.03 million tonnes in the same quarter. The proportion of premium products sales against total trade cement sales stood at 7.5 per cent in the March quarter against 7.2 per cent in the December quarter.
As per Trendlyne data, the average target price of the stock is Rs 23,765, which shows an upside of 3 per cent from the current market prices. The consensus recommendation from 38 analysts for the stock is a Sell.
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