Shares of this small-cap stock engaged in the manufacture and sale of Cement surged 2 percent after a block deal involving several companies, including the Nuvama Multi Asset Strategy Return Fund.
Price Movement
In Wednesday’s trading session, Orient Cement Ltd share price reached an intra-day high of Rs.348.85 per share, rising 1.5 percent from its previous close of Rs.343.60 apiece. The share has retreated since then and is trading currently at Rs.345.05 per share.
What happened
On October 22, 2024, Nuvama Multi Asset Strategy Return Fund made a bulk purchase of 18,70,000 shares (0.91% stake) of Orient Cement Ltd at a price of Rs.347.94 per share on the NSE . Similarly, Ashika Credit Capital Limited also saw a bulk purchase of 10,50,000 shares at Rs.353.23 per share, also on the NSE.
Additionally, Graviton Research Capital LLP executed a bulk sell of 1,520,064 shares at Rs.355.54 per share. The recent transactions involving Orient Cement could significantly impact market sentiment and stock performance.
Recent Developments
Ambuja Cements Ltd, a subsidiary of the Adani Group, has declared its intention to acquire a 46.8 percent stake in Orient Cement Ltd for an equity value of Rs.8,100 crore. The acquisition will involve purchasing shares from both the promoters of Orient Cement and select public shareholders, with the shares priced at Rs.395.4 each.
Manufacturing Facilities
Orient Cement has a total manufacturing capacity of 8.5 million tonnes per annum (MTPA) across three facilities: the Devapur Plant in Telangana (3.5 MTPA), the Chittapur Plant in Karnataka (3.0 MTPA), and the Jalgaon Plant in Maharashtra (2.0 MTPA).
The company plans to expand its capacity to 11.5 MTPA by 2025 through brownfield expansions, with a long-term goal of reaching 18 MTPA.
Financial Overview
In its latest financial update, the company reported net sales of Rs.696 crore for Q1 FY25, reflecting a 16 percent decrease from Rs.825 crore in Q1 FY24. Profit after tax remained stable at Rs.37 crore in the same period.
About the company
Orient Cement Limited is an India-based cement company. The Company is primarily engaged in the manufacture and sale of cement. The Company’s product mix includes Pozzolana Portland Cement (PPC) and Ordinary Portland Cement (OPC), which markets under the brand name of Birla.A1-Birla.A1 Premium Cement and Birla.A1 StrongCrete.
Written by – Siddesh S Raskar
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