Shares of Prism Johnson saw a significant surge of over 15% on September 11, reaching a new high of ₹246 on the National Stock Exchange (NSE). This remarkable rise in stock price can be attributed to a surge in trading volumes, with over 7 crore shares exchanging hands on both the NSE and BSE. This volume is a stark contrast to the company's typical one-month average of 36 lakh shares.
For those looking to capitalise on such stock movements, it's essential to know how to buy shares online efficiently.
Stock volume prompts clarification from BSE
Following the unusual spike in trading volume, the Bombay Stock Exchange (BSE) requested clarification from Prism Johnson regarding this sudden movement. At around 1:17 PM on September 11, despite the earlier spike, Prism Johnson's shares slightly retraced, trading 13% lower at ₹236.71 on the NSE.
Investors who regularly buy shares online were keen to monitor this stock, considering its impressive year-to-date growth. So far, Prism Johnson's stock has risen around 28% in 2024. Moreover, over the past 12 months, the stock has gained nearly 69%, significantly outperforming the 28% rise in the Nifty index over the same period.
Prism Johnson's business overview
Prism Johnson is one of India's leading integrated building materials companies. It provides a range of products, including cement, ready-mixed concrete, tiles, and bath fittings. This diversification has made it a prominent player in the construction and building materials industry.
For those aiming to invest in such large companies, buying shares online provides a seamless way to build a portfolio in diverse sectors. Companies like Prism Johnson, which spans multiple industries, can offer long-term growth potential to investors looking to buy shares online.
Recent financial performance
Despite its stock market success, Prism Johnson recently faced some financial challenges. In the quarter ending June 2024, the company reported a net loss of ₹7.70 crore, a significant shift from the net profit of ₹17.89 crore reported in the same period last year.
This downturn was attributed to weak demand and sluggish pricing in the company's key cement division. Additionally, the company's sales decreased by 8.24% year-on-year (YoY), totalling ₹1,746.92 crore for the quarter.
Despite these setbacks, the stock's recent performance may still encourage investors to buy shares online, given the potential for recovery and growth in the building materials sector.
Expansion into the sanitaryware business
In a strategic move to expand its portfolio, Prism Johnson recently announced a shareholders' agreement to acquire 50% of Sunbath Sanitary, a company specialising in sanitaryware manufacturing. As part of this acquisition, Prism Johnson invested ₹18.72 crore by acquiring 6 lakh equity shares at a premium.
This expansion could further boost investor confidence and might lead more people to buy shares online in the company as they look for opportunities in diverse and growing industries.
A bright future for Prism Johnson?
Prism Johnson's stock continues to capture the attention of both institutional and retail investors. Despite some recent financial losses, the company's strategic expansion and its dominant position in the building materials market make it an attractive prospect.
For those looking to invest and buy shares online, Prism Johnson may offer a compelling opportunity, especially given its recent stock market performance and potential for future growth.
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