Kesoram Industries extends rally on talk of demerger; zooms 65% in 3-weeks
The stock moved higher by 8% to Rs 99, rallying 65% from Rs 60 as compared to a 2.6% rise in the S&P BSE Sensex, since November 13, 2018.
 "Kesoram Industries extends rally on talk of demerger; zooms 65% in 3-weeks")
premium
Shares of Kesoram Industries has moved higher by 8% to Rs 99, extending its past three weeks rally on the BSE after media report suggest that the company may demerge its loss-making tyre unit by the end of December.
Since November 13, post-September quarter results (Q2FY19), the stock zoomed 65% from Rs 60, as compared to a 2.6% rise in the S&P BSE Sensex. Kesoram Industries had reported a net loss of Rs 963 million in Q2FY19 against loss of Rs 1,396 million in the same quarter previous fiscal. It posted a net loss of Rs 634 million in Q1FY19.
A part of B.K. Birla group company is a well-diversified entity in the fields of cement, tyre, rayon yarn, transparent paper, spun pipes and heavy chemicals with two-core business segments i.e. cement and tyres.
However, the company denied media report and said that it is not aware of any "negotiations" allegedly taking place.
“We must clearly and categorically state not being aware of any information that could explain the rally in share prices on the Exchange today. As already stated earlier, persons dealing with our shares on the Exchange based purely on rumours do so at their own risk and consequences,” Kesoram Industries said in a regulatory filing on November 30, 2018.
Kesoram Industries in its annual report said that the Company is closely looking at the possibility of inducting a strategic partner in possession of specialized acumen in the tyre industry globally to assist it in operating the tyre business in a manner that will be even more beneficial for all stakeholders.
The stock of Kesoram Industries corrected 69% from its 52-week high level of Rs 173 on January 1, 2018, to touch a 52-week low of Rs 54.50 on October 23, 2018.
At 12:06 pm; it was trading 7.5% higher at Rs 98.50 on the BSE, as compared to 0.37% decline in the S&P BSE Sensex. A combined 3.26 million equity shares changed hands on the counter on the BSE and NSE so far.
Since November 13, post-September quarter results (Q2FY19), the stock zoomed 65% from Rs 60, as compared to a 2.6% rise in the S&P BSE Sensex. Kesoram Industries had reported a net loss of Rs 963 million in Q2FY19 against loss of Rs 1,396 million in the same quarter previous fiscal. It posted a net loss of Rs 634 million in Q1FY19.
A part of B.K. Birla group company is a well-diversified entity in the fields of cement, tyre, rayon yarn, transparent paper, spun pipes and heavy chemicals with two-core business segments i.e. cement and tyres.
However, the company denied media report and said that it is not aware of any "negotiations" allegedly taking place.
“We must clearly and categorically state not being aware of any information that could explain the rally in share prices on the Exchange today. As already stated earlier, persons dealing with our shares on the Exchange based purely on rumours do so at their own risk and consequences,” Kesoram Industries said in a regulatory filing on November 30, 2018.
Kesoram Industries in its annual report said that the Company is closely looking at the possibility of inducting a strategic partner in possession of specialized acumen in the tyre industry globally to assist it in operating the tyre business in a manner that will be even more beneficial for all stakeholders.
The stock of Kesoram Industries corrected 69% from its 52-week high level of Rs 173 on January 1, 2018, to touch a 52-week low of Rs 54.50 on October 23, 2018.
At 12:06 pm; it was trading 7.5% higher at Rs 98.50 on the BSE, as compared to 0.37% decline in the S&P BSE Sensex. A combined 3.26 million equity shares changed hands on the counter on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%