During the Wednesday trading session, the shares of one of the Leading cement companies in India jumped upto 9 percent in the days trade following the speculative reports suggesting a possible acquisition by Adani-led Ambuja Cement.
Price action
With the market capitalization of Rs.7,928 crores on Wednesday, the shares of Star cements ltd jumped upto 9 percent making an Intraday high at Rs.222.80 compared to its previous closing price of Rs.195.54.
What happened
The Shares of Star Cement surged by up to 9.6% to Rs 222 on Wednesday following news in the media that Ambuja Cement, a unit of the Adani Group, is in talks to acquire the cement company as part of its expansion plans.
Later, the company clarified that the report is purely speculative, they stated that no discussions are currently taking place regarding such an acquisition.
About the company
Star Cement Limited was incorporated on November 02, 2001 it is one of the largest cement manufacturers in North Eastern Region (NER). The company is known for producing high-quality cement for various applications including residential, commercial, and infrastructure projects with a strong presence in the northeastern states, Star Cement has established itself as a key player in the region’s construction industry.
The company focuses on sustainability and innovation in its manufacturing processes, producing cement with lower carbon emissions.Star Cement’s products are widely recognized for their durability and performance, and the company continues to expand its reach and production capacity to meet the growing demand in both local and regional markets.
Financials
The company’s revenue rose by 8.8 percent, from Rs. 591.03 crore in Q2FY24 to Rs 643.18 crore in Q2FY25. Meanwhile, Net profit saw a decline from a profit of Rs 40.67 crores to a profit of Rs 5.74 crore during the same period.
Key Financial ratios
Star Cement Limited has a Return on Equity (RoE) of 7.12 percent and a Return on Capital Employed (RoCE) of 10.24 percent and Furthermore, the company’s debt-to-equity ratio is 0.14.
Stock Performance
The stock has provided impressive returns of about 23.4 percent over the last year, along with an impressive 18 percent gain in the last week of 2024, it has continued to perform strongly.
Written by Sridhar
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