Shree Cement stock recovered today after yesterday’s massive decline. The company suffered a major blow to valuations as reports of Income Tax survey at company’s locations emerged in media during the weekend. The company informed the exchange that IT surveys were ongoing and management has been fully cooperating with the income tax staff.

The stock opened lower on Monday and continued to trade under pressure. There was slight recovery during the afternoon session. It is still not clear what Income Tax department has found against the company. Shree Cement was trading nearly one percent higher during early trades on Tuesday.

Nischal Maheshwari, CEO Institutional Equities & Advisory at Centrum Broking, has suggested BUY strategy for Shree Cement as the stock is now available at lower valuations. As per Maheshwari, Shree Cement has always traded at a fairly steep premium to the market and it continues to do so.

Maheshwari added, “So I think this correction should be looked at as a buying opportunity. It is always traded well basically. The volumes are going to be good. This quarter is going to be good basically, the June quarter for the cement industry as a whole and for Shree Cement in particular. So I think this could be a good opportunity to accumulate."