UltraTech Cement has been in the spotlight following its recent announcement of a 1:52 share swap ratio for the acquisition of Kesoram Industries. The cement maker in an exchange filing on Tuesday (February 25) announced that the board has approved the demerger scheme involving Kesoram Industries, which will take effect on March 1, 2025. That apart cement industry dynamics have also been at the centre of discussion. As reported on Financial Express.com, the cement industry is set for a revival and profitability is expected to improve further in Q4.
Let’s take a look at the 4 striking factors about the stock and what to watch out for now-
UltraTech Cement: Share swap details
As per the regulatory filing, the company said that under the approved scheme, UltraTech Cement will issue shares to Kesoram Industries shareholders as follows-
- 1 equity share of UltraTech Cement (face value of Rs 10) for every 52 equity shares of Kesoram Industries.
- 54.86 lakh fully paid-up 7.3% non-convertible redeemable preference shares of Rs 100 each for 90 lakh 5% cumulative non-convertible redeemable preference shares of Kesoram Industries.
- 8.64 lakh fully paid-up 7.3% non-convertible redeemable preference shares of Rs 100 each for 19.19 lakh 0% optionally convertible redeemable preference shares of Kesoram Industries.
UltraTech Cement: Expansion into wires and cable segment
In a latest and positive development, the Aditya Birla Group flagship, UltraTech Cement is set to enter the wires and cables business with an investment of Rs 1,800 crore over the next two years.
The manufacturing facility for this segment will be set up in Bharuch, Gujarat, and is expected to be operational by December 2026. The sector has seen a revenue CAGR of approximately 13% between FY19 and FY24.
“We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector. Obviously, we will continue to focus and grow our core Cement business. This year UltraTech reached a new milestone of crossing 175 mtpa of cement capacity in India and is likely to emerge as the largest cement company globally (by sales volume ex-China). UltraTech remains committed to delivering superior quality building materials and solutions that contribute to the sustainable development of a Viksit Bharat,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group.
Cement Industry gears up for a strong Q4FY25
The cement sector is set for a turnaround in Q4FY25, with profitability expected to rise, driven by higher prices and improved operational efficiency during peak construction season.
In Q3, the industry faced pressure due to a sharp 9% drop amid intense competition. However, easing winter conditions, increased government spending, and a surge in construction activity, foe cement manufacturers, February so far has been a healthy month . Furthermore, market experts anticipate even stronger demand in the coming weeks.
UltraTech Cement: Stock performance and market trends
UltraTech Cement share price closed at Rs 10,968.45 in the last trading session, marking a slight dip of 0.68%.
Over the past five days, its share price of the cement marker has declined by nearly 3%, and over the last six months, it has seen a similar downward trend of 3%. However, on a one year basis, the share price of UltraTech Cement has delivered a 10% return.
With a market capitalisation of Rs 3.15 lakh crore, UltraTech Cement continues to be a major player in the industry. Its 52-week high stands at Rs 12,145.35 per share, while its 52-week low is Rs 9,250 per share.