Orient Cement Limited Share: Rapid Growth and Promising Performance
Orient Cement Share: In recent developments, shares of Orient Cement Limited experienced a surge of 14%. This is speculated to be the result of industrialist CK Birla’s potential negotiations with Gautam Adani about selling his promoter stake in the company.
Background: Orient Cement Limited, once a segment of Orient Paper and Industries, came into its current form in 2012 after a demerger. Since then, it has prominently emerged as one of the fastest-growing and leading cement companies in India. The company initiated its cement production in 1982 at Devapur located in Adilabad district of Telangana. In 1997, it further expanded by inaugurating a split-grinding unit in Nasirabad, Jalgaon, Maharashtra. Fast forward to 2015, Orient Cement initiated commercial production at its integrated cement plant situated in Gulbarga, Karnataka. With a massive total capacity of eight million metric tons annually, the company provides services across several regions including Maharashtra, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu, Kerala, Gujarat, and parts of Chhattisgarh.
Recent Financial Highlights: Orient Cement Limited declared its first quarterly results for the recent financial year, showcasing impressive growth. The company’s sales escalated by 15.6% reaching INR 825 crores, compared to INR 714 crores during the same quarter of the previous year. However, the operating profit slightly decreased by 2.9%, amounting to INR 99 crores as opposed to INR 102 crores in the first quarter of financial year 2023. Despite this, the net profit remained consistent at INR 37 crores. Notably, over the past three years, the company has been successful in enhancing its sales at an annual rate of 7% and witnessed an increase in net profit at an annual growth rate of 12%.
Stock Market Performance: In stock market terms, Orient Cement’s shares have delivered an exceptional return of 73.8% over the last year and a whopping 226% over the past three years. The company’s ROCE stands at 12% with an ROE of 7.85%. On Wednesday, the company’s shares saw an increase of more than 14%, reaching a price of INR 216.35, marking its 52-week high. Alongside the spike in share price, its trading volume witnessed a surge, growing more than 8.51 times. Given these dynamics, investors should keep a close watch on this trending stock.
The potential stake sale talks and the strong financial and stock market performance suggest a promising future for Orient Cement Limited. It remains a company of interest for both industry insiders and stock market enthusiasts.