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Cement stock jumps 10% after speculations of Adani to acquire company 

Cement stocks surged 13.66% to ₹222.95 on BSE amid Adani Group's acquisition buzz, highlighting consolidation opportunities, ambitious expansion plans, and competitive challenges in the evolving cement industry landscape.
Cement stocks jump 13.66% on BSE amid Adani Group's acquisition buzz, driving consolidation and expansion focus.
Cement stocks jump 13.66% on BSE amid Adani Group's acquisition buzz, driving consolidation and expansion focus.

Introduction:

Cement stocks witnessed a notable surge as shares climbed 13.66% to ₹222.95 on BSE, driven by Adani Group’s reported interest in acquisitions. With a strong market presence and ambitious expansion goals, the sector sees significant consolidation opportunities amid growing demand and competitive challenges.

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Share Price movement of Star Cement Ltd:

On December 4, 2024, Star Cement’s share price rose 8.58%, reaching ₹212.31 as the current price. The stock opened at ₹195.01, hit an intraday high of ₹222.80, and a low of ₹192.87, with a market capitalization of ₹8,756.28 crore.

Star Cement Ltd share price rise:

Star Cement Ltd shares surged 13.66% to ₹222.95 on BSE following reports of Adani Group’s interest in acquiring the company. As the largest cement manufacturer in Northeast India with a 7.7 MTPA capacity, Star Cement Ltd aims to expand to 25 MTPA by 2030.

The Adani Group reportedly engaged consultancy firm EY to evaluate the acquisition, though the report remains unconfirmed. Meanwhile, Star Cement Ltd’s stock has risen 25% in 2024, outperforming the 12.05% gain in the BSE Sensex. Experts highlight consolidation as a key driver of premium valuations for major players in the sector.

Goldman Sachs anticipates FY25 to be challenging for cement sector profitability, with slight improvement in FY26. Larger players are expanding capacity, and consolidators aim to optimize acquired assets. Intense competition may limit pricing power, despite rising demand and lower costs.

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Recent news About Star Cement Ltd:

In September 2024, Star Cement Ltd incorporated two wholly owned subsidiaries in Meghalaya: Kopili Cement (I) Private Limited and Ri Pnar Cement Private Limited, aiming to enhance its operational footprint in the region.

Ace investor holding of Star Cement Ltd:

Ace investor Mahabir Prasad Agarwal and Sons hold a 10.37% stake in Star Cement Ltd, owning 4,18,91,642 shares valued at ₹891.5 crore at the current price of ₹212.8. The holding remains unchanged from the previous quarter, showcasing continued confidence in the stock.

Stock performance of Star Cement Ltd for Period of 1 week, 6 months and 1 year:

Star Cement Ltd has delivered a mixed performance across timeframes. Over the past week, the stock gained 10.5%. However, it declined by 10.7% over six months but posted a positive return of 15.7% over the past year.

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Shareholding pattern of Star Cement Ltd:

All values in %Sep-24Jun-24Mar-24
Promoters66.4766.4966.59
FII1.361.611.52
DII4.985.076.11
Retail & others27.1826.8525.77
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About Star Cement Ltd:

Star Cement Ltd, a leading cement manufacturer in Northeast India, operates with an installed capacity of 7.7 MTPA. Known for quality products, it aims to expand capacity to 25 MTPA by 2030, strengthening its market position.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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