Prism Johnson Shares Surge Amid Trading Activity
Prism Johnson’s stock performance: On September 11, shares of Prism Johnson experienced a remarkable rise of over 15%, reaching an all-time high of Rs 246 during trading on the National Stock Exchange (NSE). This impressive uptick in stock price was largely attributed to a significant surge in trading volume, with over 7 crore shares exchanged on that day alone, a marked contrast to the company’s average monthly trading volume of just 36 lakh shares. Following this surge, the Bombay Stock Exchange (BSE) sought clarification from the company regarding the unusual trading activity.
Current Trading Status
As of 2:40 pm on the same day, Prism Johnson’s shares were trading at Rs 234.17, reflecting a robust gain of 12.53%. Investors have been closely monitoring the company’s stock, which has shown a remarkable performance over the past year.
Year-to-Date Performance
| Time Period | Price Change | Nifty Change |
|---|---|---|
| Year-to-Date | +28% | +28% |
| Past 12 Months | +69% | +28% |
Company Overview
Prism Johnson stands out as India’s largest integrated building materials company, specializing in a diverse array of products, including cement, tiles, and bath products. Despite its substantial market position, the company faced challenges recently due to a decline in demand and stagnant cement prices.
Financial Challenges
For the June 2024 quarter, Prism Johnson reported a net loss of Rs 7.70 crore, marking a significant downturn from a profit of Rs 17.89 crore during the same period the previous year. The company’s sales also declined by 8.24% year-on-year, totaling Rs 1,746.92 crore, reflecting the broader economic pressures on the construction and building materials sector.
Strategic Moves
In an effort to bolster its market position, Prism Johnson recently announced its acquisition of a 50% stake in Sunbath Sanitary, a company renowned for manufacturing sanitaryware. This strategic investment involved the purchase of 6 lakh equity shares at a nominal value of Rs 10 each, accompanied by a premium of Rs 21.2 per share. This move highlights Prism Johnson’s commitment to diversifying its product offerings and enhancing its presence in the building materials industry.
