Synopsis:
Barak Valley Cements’ subsidiary received Assam Government approval for incentives under IIPA 2019, supporting a ₹482 crore cement project in Assam.
This Penny Cement Stock, engaged in manufacturing and marketing of cement and clinker, operating plants in Assam, contributing to infrastructure, industrial growth, and regional development, jumped 11 percent after receiving approval for customized incentives from the Government of Assam.
With a market capitalization of Rs. 94.56 crores, the share of Barak Valley Cements Limited has reached an intraday high of Rs. 45.17 per equity share, rising nearly 11.34 percent from its previous day’s close price of Rs. 40.57. Since then, the stock has retreated and is currently trading at Rs. 42.67 per equity share.
What is the News?
Barak Valley Cements Limited has announced that its fully owned subsidiary, Valley Strong Cements (Assam) Limited, has received a letter of approval for customized incentives from the Government of Assam. The approval is for customized incentives under the Industrial and Investment Policy of Assam (IIPA), 2019, which supports new industrial projects in the state.
The upcoming project will see an investment of about Rs. 482 crores, planned in two phases, to set up a cement manufacturing unit. The plant will have a capacity of 1,600 TPD clinker in Phase I and 2,000 TPD cement in Phase II. These incentives are expected to support the company’s growth plans, encourage industrial development in Assam, and create local employment opportunities.
Also read: Penny stock jumps 9% after receiving ₹116 Cr order for construction of PM Ekta Mall in Mizoram
Company Overview
Barak Valley Cements Limited (BVCL) was incorporated in 1999. It operates primarily in the cement manufacturing sector, catering mainly to the North Eastern states of India. The company has subsidiaries like Meghalaya Minerals & Mines Limited (which supplies limestone, the main raw material for cement) and Cement International Limited, which operates a cement grinding unit in Assam.
The company markets its cement under the brand “Valley Strong Cement” and has proposed expansion plans for a larger manufacturing unit. The company had also acquired and later sold tea companies as part of its business activities. It aims to serve the cement demand in the surrounding North Eastern areas, including Mizoram, Tripura, and others.
Recent quarter results
Coming into financial highlights, Barak Valley Cements Limited’s revenue has increased from Rs. 53.54 crore in Q1 FY25 to Rs. 57.52 crore in Q1 FY26, which has grown by 7.43 percent. The net profit has decreased by 58.04 percent from Rs. 3.17 crore in Q1 FY25 to Rs. 1.33 crore in Q1 FY26.
Barak Valley Cements Limited’s revenue and net profit have grown at a CAGR of 9.07 percent and 25.74 percent, respectively, over the last four years. In terms of return ratios, the company’s ROCE and ROE stand at 8.95 percent and 4.21 percent, respectively. Barak Valley Cements Limited has an earnings per share (EPS) of Rs. 2.33, and its debt-to-equity ratio is 0.26x.
Written By – Nikhil Naik
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