Prism Cement dumped by 'hoarders'

Prism Cement is weak today, currently down over 2% at Rs.74.30, which is its present intra day low level. The stock could go down further based on the news of a raid trickling in.

There is news that the mining department has found 4000 metric tonnes of illegal coal, worth Rs.12 crore, stored at the company’s factory in Madhya Pradesh. The company first requires a license to store cola and apparently, Prism did not only have this license but had not even applied for one and yet it stored.

As per the rules of the mining department, the company will be fined 10 times worth the stored coal – this means the fine will work out at Rs.120 crore. Obviously, the company will either deny this or contest this fine but for today, the stock is in the cloud.