In Thursday’s morning trading session, the shares of the largest grey cement manufacturer in India surged 6.5 percent to hit a new 52-week high at Rs. 11,875.95, after the company bought a 23 percent stake worth Rs. 1,885 crore in India Cements Limited.
At 09:55 a.m., the shares of UltraTech Cement Limited were trading in the green at Rs. 11,707, up by 5 percent, as against its previous closing price of Rs. 11,149.75.
What’s the news:
UltraTech Cement has informed the stock exchanges regarding the company’s Board approval for the purchase of up to 7.06 crore equity shares, representing around 23 percent stake, of India Cements Limited (ICL) at a price of Rs. 267 per share, bringing the total deal value at Rs. 1,885 crore.
The acquisition, which is expected to be completed in one month, is being made through cash consideration. It is a purely financial investment and not a related-party transaction.
More about India Cements
India Cements, incorporated in 1946 and headquartered in Chennai, has consistently performed well, with a turnover of Rs. 5,112 crore in FY23-24, Rs. 5,608 crore in FY22-23, and Rs. 4,858 crore in FY21-22.
Following the announcement, ICL’s shares also moved up by 13.7 percent in the morning trading session of Thursday, reaching a new 52-week high at Rs. 299, compared to its previous closing price of Rs. 262.95.
Notably, the ace investor and founder of the retail chain DMart, Radhakishan Damani, along with his brother Gopikishan Damani and other entities owns a 20.78 percent stake in India Cements, as per the March 2024 shareholding pattern on BSE.
Financial & Stock Performance:
In terms of financials, the company’s revenue from operations jumped by 9.4 percent YoY from Rs. 18,662 crore in Q4 FY22-23 to Rs. 20,418 crore in Q4 FY23-24, while the after-tax profit increased by 35.2 percent from Rs. 1,670 crore to Rs. 2,258.6 crore, during the same period.
The stock has delivered positive returns of nearly 41.5 percent in one year, and around 11.2 percent of positive returns year-to-date.
As per the shareholding pattern of March 2024, the Promoters hold a 59.95 percent stake in the company, Foreign Institutional Investors (FII) hold an 18.26 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 7.54 percent and 14.24 percent stake in UltraTech Cement, respectively.
About the company:
The cement flagship company of the Aditya Birla Group, UltraTech Cement Limited is engaged in the business of manufacturing and sale of Cement and Cement-related products.
UltraTech Cement is India’s largest manufacturer of grey cement and ready mix concrete, one of the top manufacturers of white cement, and the world’s third-largest cement producer (excluding China).
Written by Shivani Singh
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