A significant player in India’s cement sector has captured market attention with its recent corporate restructuring announcement. The company’s shares showed positive momentum, rising 1.72% to reach Rs. 206.95, reflecting investor optimism about its strategic moves.
The company has received crucial approval from NCLT Kolkata for the demerger of its Cement Division, marking a significant milestone in its business transformation journey.
Share Price Movement
The share price of Kesoram Industries Limited went up by 1.72 percent to Rs. 206.95 per share on Tuesday, an increase from its previous close of Rs. 203.45 per share. The market capitalisation now stands at approximately Rs. 6,428 crore as of November 19, 2024.
What Happened
Kesoram Industries Limited has announced that the NCLT Kolkata has approved their scheme for demerging their Cement Division. The scheme will take effect on the first day of the following month after filing with the Registrar of Companies and meeting other conditions.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Kesoram Industries Limited’s consolidated revenue from operations has decreased by 1.6 percent YOY from Rs. 60 crore in Q2 FY24 to Rs. 59 crore in Q2 FY25 and decreased by 12 percent QoQ from Rs. 67 crore in Q1 FY25.
The company’s consolidated net profit has increased it’s losses from negative Rs. 59 crore in Q2 FY24 to negative Rs. 70 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net loss has also increased from a negative Rs. 61 crore.
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Market Outlook
The Indian cement industry shows strong growth potential, being the world’s second-largest producer. The outlook is positive, with an expected production capacity of 550–600 million metric tonnes by 2025, driven by urbanisation and infrastructure projects. However, there are challenges like interest rate hikes, inflation, and raw material availability. The industry is supported by government investment in infrastructure and rural market growth. The sector may face some pressure from fuel costs and mineral reserve limitations.
Shareholding Pattern
As of the November 2024 shareholding pattern, Kesoram Industries Limited is primarily held by the promotors at 43.34 percent, foreign institutional investors hold 7.17 percent, and the public with 32.01 percent.
About Company
Kesoram Industries Limited, a cornerstone of India’s industrial history, was established in 1919 and is part of the renowned BK Birla Group. Initially focused on cotton textiles, the company diversified into rayon, cement, and tires. Headquartered in Kolkata, Kesoram is recognised for its Viscose Filament Yarn (VFY) and cement products marketed under the Birla Shakti brand. Its contributions to synthetic fibres and cement have solidified its role in shaping India’s industrial landscape.
The company operates a significant rayon manufacturing facility in West Bengal and two major cement plants in Karnataka and Telangana. Its legacy includes notable milestones like establishing India’s first rayon plant in 1959 and expanding its cement business under Vasavadatta Cement. Recently, Kesoram streamlined its portfolio, divesting its tire segment and announcing a demerger plan to sell its cement business to UltraTech Cement for ₹5,379 crore.
Focusing on rayon production and transparent paper, Kesoram aims to enhance operational efficiency and financial stability. With strategic shifts, the company continues to evolve, securing its position as a leader in India’s industrial sector.
Written By Fazal Ul Vahab C H
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