Major cement player in North Eastern India rose 8.6% after being selected as the preferred bidder for Limestone Block in e-auctions conducted by the Government of Rajasthan.
Share price variations:
With a market capitalization of Rs. 8,623.19 crores, Star Cement Ltd opened the trading session at Rs. 203.5, above 1.54% from yesterday’s close of Rs. 200.40 . The stock reached an intraday high of Rs. 217.65, reflecting a 8.6% increase from previous close and closed at Rs. 213.35 per share.
Reason for Rise:
According to exchange filings, Star Cement North East Limited, a subsidiary of Star Cement Ltd, has been declared the preferred bidder for limestone blocks NB 04, NB 05, NB 06, NB 07, NB 08, and NB 11 located in N/V Nimbol, Tehsil Jaitaram, Dist. Beawer, Rajasthan. This announcement follows an e-auction conducted by the Government of Rajasthan. The auctioned area spans 95.6823 hectares, with an estimated limestone resource of 63.90 million tonnes.
Recent Updates
In September the company incorporated two Wholly Owned Subsidiaries by the name Kopili Cement Pvt Ltd and RI Pnar Cement Pvt Ltd in the State of Meghalaya to carry out cement and cement related business.
Financial Performance:
For Q1FY25 the company reported a net profit decrease of 66.77% to Rs. 30.99 crores compared to net profit of Rs. 93.26 crores in Q1FY24, while revenue from operations also marked a decrease by 1.24% to Rs. 751.01 crores from Rs. 760.47 crores in comparison to the same period.
Company has a ROE of 11.51% and ROCE of 16.30% in FY24 and holds a market share of 27% in North Eastern India in Q1F25
About the company:
Star Cement Limited is one of the leading cement companies in North-Eastern India and one of the fastest-growing cement brands in West Bengal and Bihar. The company operates a 1.67 million tonnes per annum (MTPA) integrated cement plant spanning 200 hectares in Meghalaya. Additionally, it has two
grinding units: a 2 million tonnes per annum cement facility in Sonapur near Guwahati and another unit at Mohitnagar near Siliguri in West Bengal, also with a capacity of 2 million tonnes per annum.
The company’s product range includes Ordinary Portland Cement in both 43-Grade and 53-Grade, as well as Portland Pozzolana Cement, Portland Slag Cement, and Anti-Rust Cement.
Written By: Joseph Pv
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