Prism Cement builds up

There is finally some good news for shareholders of Prism Cement.

The company has successfully bid for 18,300 tonnes per annum of coal from South Eastern Coalfields Limited [A subsidiary of Coal India Limited (‘CIL’)] in a recently held auction of coal linkages for the cement industry.

The company has secured part fuel requirement for the next 5 years. This allocation by CIL has been made at a nominal premium over the floor price.

This intimation is based on the information available on the website of MSTC E-commerce. The company is yet to receive the allotment letter.

This, along with the earlier coal linkage of 120,000 tonnes per annum, constitutes about 25 percent of the company's annual fuel requirement.

Following this news, the stock price of Prism Cement rose over 8.5% to Rs.103.50 and has since then come off those intra day highs; currently at Rs.99 levels, up some 4.5%. Its 52-week high is at Rs.118.45.