UltraTech Cement expresses interest in the cement assets of Kesoram Industries

24 Nov 2023 , 11:46 AM

According to a CNBC-TV 18 report on November 23, UltraTech Cement has expressed interest in the cement assets of Kesoram Industries and is currently performing due diligence at the business.

Shares of Kesoram Industries achieved a 5% upper circuit of Rs 123 per share on November 23 following the news development. Additionally, the stock was trading near its 52-week highs.

On November 23, Ultratech Cement’s shares decreased by more than 1%.

Additionally, reports claim that Ultratech is looking into purchasing cement companies or doing an existing promoter buyout.  Kesoram Industries is a manufacturer of heavy chemicals, spun pipes, rayon, paper, tires, and cement.

Sales at Kesoram Industries increased by 13% YoY in the quarter that ended in September (Q2FY24), while net loss decreased to Rs 58 crore from Rs 59 crore in the same period last year.

Kesoram Industries is currently trading at a valuation of 469 times (x) price-to-earnings (PE), which is much higher than the sector average of 31x PE multiple.

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