This little-known cement company's stock zooms 446% in 7 weeks

The cement maker has surged in stock price despite recently reporting weak earnings.

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Shares of Hemadri Cements Ltd saw a remarkable surge of approximately 446 percent, consistently hitting the 5 percent upper circuit on a daily basis for the past seven weeks, despite trading with minimal volumes.

The stock, which was relisted on the BSE on April 10 at Rs 6 per share according to Bloomberg data, has witnessed continuous upward movement, triggering the upper circuit for 32 consecutive trading sessions. As of Wednesday, the stock was trading at Rs 32.80, a significant increase from its initial price of Rs 6 per share on April 10.

There are no details available on exchanges or its website on why the company got delisted and how the exchanges allowed it to relist.

The cement maker has surged in stock price despite recently reporting weak earnings. The net loss for the quarter widened to Rs 5.18 crore from Rs 36.76 lakh a year ago. Revenue declined to Rs 19.17 crore from Rs 22.35 crore last year.

For fiscal 2023, the firm reported a loss of Rs 15.29 crore against a net profit of Rs 42.49 lakh in FY22. Revenue fell 17.1 percent year-on-year to Rs 68.37 crore. Total debt as of March 2023 was at Rs 11.54 crore versus Rs 4.78 crore.

According to its website, Hemadri Cements  is a cement manufacturing company located in Jaggayyapet, Andhra Pradesh. The company was commissioned in March 1985 and has since established itself as a prominent player in the cement industry. The promoters hold 63 percent stake in the company, as of March 2023.

The firm did not mention its capacity and plant details in its annual report or on its website.

Hemadri Cements is known for producing high-quality cement that meets stringent quality control parameters set by the Bureau of Indian Standards (BIS) and the Research & Consultancy Directorate. The company manufactures two types of cement: Hemadri 43 Grade and Hemadri Gold 53 Grade OPC (Ordinary Portland Cement), the website said.