UltraTech Cement has indicated interest in Kesoram Industries’ cement assets and is conducting due diligence at the company, sources told CNBC-TV 18 on November 23.
Following the news development, shares of Kesoram Industries hit 5 percent upper circuit of Rs 123 per share on November 23. The stock was also trading at 52-week high levels.
Meanwhile, shares of Ultratech Cement slipped over 1 percent on November 23.
Further, according to the sources, Ultratech is exploring both existing promoter buyout or cement business acquisition. CNBC-TV18 has reached out to both UltraTech and Kesoram for comment on the same and the story will be updated with response if it comes.
Kesoram Industries is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes.
In the September-ended quarter (Q2FY24), Kesoram Industries sales jumped by 13 percent year-on-year (YoY), whereas net loss narrowed to Rs 58 crore from R 59 crore in the year-ago period.
Valuation-wise, Kesoram Industries is trading at 469 times (x) price-to-earnings (PE), much higher than sector's mean of 31x PE multiple.
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