Shares of this small-cap company, which operates in cement, textiles, and software solutions, jumped nearly 8 percent on Tuesday after 14.1 million shares representing 16.2 percent of the company’s equity were traded in two large block deals, according to Bloomberg data.
Share Price Movement
During Tuesday’s trading session, Ramco Industries Ltd’s share price increased by 7.8 percent, reaching an intra-day high of Rs.250.00 per share, up from the previous close of Rs.231.91 apiece. The shares have retreated since then and are currently trading at Rs.243.55 per share.
What Happened
Shares of Ramco Industries rose on October 29 after 14.1 million shares, representing 16.2 percent of the company’s equity, were traded in two large block deals, according to Bloomberg data.
In an exchange filing, Ramco Cements announced that its board approved the divestment of 1.4 crore shares (approximately 14 million shares) of Ramco Industries to Rajapalayam Mills and Ramco Management, all of which, along with Ramco Cements, are promoters of Ramco Industries.
The company stated, “The transaction will be executed as an inter-se promoter transfer among Ramco Cements, Ramco Management, and Rajapalayam Mills. Following completion, there will be no change in the management or control of the company,” emphasizing that this stake realignment will not impact operations.
Manufacturing Capacity
Ramco Industries Limited has significant manufacturing capacity across India and Sri Lanka. It produces over 7,00,000 tons of fiber cement sheets annually and has a calcium silicate board production capacity of 48,000 metric tons per annum at its Keshwana plant in Rajasthan.
Recent Developments
Ramco Industries is advancing its manufacturing capacity with a Rs.1,250 crore investment aimed at doubling clinker and cement capacities at its Andhra Pradesh plant. This initiative includes the installation of a new 15 MW waste heat recovery system.
By FY26, total clinker capacity is expected to reach 19 MTPA, while cement capacity will grow to 26 MTPA. Additionally, Ramco is committed to sustainability by establishing waste heat recovery units to reduce emissions, emphasizing its focus on growth and environmental responsibility.
Financial Performance
In its latest financial update, the company reported net sales of Rs.543 crore for Q1 FY25, indicating a 12.6 percent increase from Rs.482 crore in Q1 FY24. However, profit after tax dipped slightly to Rs.39 crore, down from Rs.40 crore during the same period.
Company Profile
Ramco Industries is a leading manufacturer of building materials, including fiber-cement sheets, calcium silicate boards, and other durable construction products. The company also operates in the textile-yarn segment, contributing to its diversified portfolio.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing
