The shares of Penny stock company, specializing in the manufacturing and sale of cement (Birla Shakti), rayon (Kesoram Rayon), transparent paper (Kesophane), and tires (Birla Tyres), are in focus upon a Bulk Deal Involving approximately Involving HDFC Life Insurance Company.
With a market capitalization of Rs. 128.61 crores on Tuesday, the shares of Kesoram Industries Limited jumped upto 1.9 percent, making a high of Rs. 4.14 per share compared to its previous closing price of Rs. 4.06 per share.
Kesoram Industries Limited, engaged in the manufacturing and sale of cement (Birla Shakti), rayon (Kesoram Rayon), transparent paper (Kesophane), and tires (Birla Tyres), recently experienced a bulk deal in which HDFC Life Insurance Company sold 18.50 Lakh equity shares, at Rs. 4.01 per share for Rs. 74.18 Lakh, and another 20.35 Lakh equity shares at Rs. 4.0 per share for Rs. 81.41 Lakh on May 05, 2025, representing a total of 1.26 percent of the company.
This significant offloading by a prominent institutional investor has drawn market attention, raising questions about the stock’s near-term outlook. The move also comes amid heightened volatility in penny stocks, prompting retail investors to closely monitor developments surrounding the company.
Manufacturing Capacity
Kesoram Industries Limited (KIL) operated two integrated cement manufacturing plants, one at Sedam in Karnataka, with a capacity of 5.1 MTPA and cement grinding capacity of 9.0 MTPA, and another at Basantnagar in Telangana, with a clinker capacity of 1.2 MTPA and cement grinding capacity of 1.8 MTPA. Together, the plants have a combined clinker capacity of 6.3 MTPA and a cement grinding capacity of 10.8 MTPA.
Financials & others
The company’s revenue declined by 92.29 percent from Rs. 1,093.96 crore to Rs. 84.35 crore in Q4FY24-25. Meanwhile, Net profit rose from a loss of Rs. 244.42 crore to a profit of Rs. 5,765.62 crore from the course of the Demerger during the same period.
The company maintains a low debt-to-equity ratio of 0.44, indicating solid financial health. It has shown strong performance with an average net profit growth of 70.61 percent over the last three years.
The company was established in 1919 as Kesoram Cotton Mills Limited in Kolkata, West Bengal, Kesoram Industries Limited (KIL) is one of India’s oldest and most diversified industrial enterprises. While it began with a focus on cotton textiles, the company gradually expanded its presence across multiple sectors such as rayon, tyres, cement, and transparent paper.
Written by Sridhar J
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