 "Orient Cement hits 52-week high on heavy volumes; zooms 25% in 3 days")
The upward movement in the stock price of the CK Birla Group company comes after Ambuja Cement successfully acquired Sanghi Industries in a deal valued at Rs 5,000 crore.
At 02:36 pm; Orient Cement was quoting 12 per cent higher at Rs 175.85, as compared to 0.3 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped over 10-fold. A combined 8.1 million equity shares had changed hands on the NSE and BSE.
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Orient Cement is primarily engaged in the manufacturing and sale of cement and its manufacturing facilities are located at Devapur in Telangana, Chittapur in Karnataka and Jalgaon in Maharashtra.
In July, Orient Cement has entered into a Share Subscription and Shareholders’ Agreement with Ardeur Renewables Private Limited and Cleantech Solar India OA 2 Pte Ltd for acquisition of 28.52 per cent stake in the share capital of Ardeur Renewables for putting up two solar power plants with capacity of 16 MWdc in Karnataka (Project 1) and capacity of 5.5 MWdc in Maharashtra (Project 2), under Captive Scheme.
Considering the strong focus on the housing and infrastructure sectors in the FY24 budget, demand for cement in India is predicted to grow by 8-10 per cent. This includes investments in road, rail, port, housing and other critical infrastructure development. Consequently, demand for cement is expected to soar to support these projects.
Non-residential sectors such as infrastructure development and commercial projects are expected to drive cement market growth in the short and long term. The eastern regions are predicted to grow the fastest, followed by the central and southern regions, with the northern and western regions expected to grow more slowly. The mining of iron ore, limestone, and stone aggregate has risen due to increased development in housing, infrastructure and steel, as demonstrated by growth in cement demand, Orient Cement said in its FY23 annual report.