Kesoram Inds gains on buzz of plans to sell its Haridwar tyre factory

Kesoram Industries rose 3.7% to Rs 124.80 at 14:52 IST on BSE on reports the company has internally valued its tyre factory at Haridwar, which it is looking to sell, at Rs 3573 crore.

Meanwhile, the S&P BSE Sensex was down 167.92 points or 0.58% at 28,840.07.

On BSE, so far 4.36 lakh shares were traded in the counter as against average daily volume of 2.25 lakh shares in the past one quarter.

The stock hit a high of Rs 129.40 and a low of Rs 123 so far during the day. The stock had hit a 52-week high of Rs 154.90 on 16 September 2014. The stock had hit a 52-week low of Rs 61 on 9 May 2014.

The stock had underperformed the market over the past one month till 25 February 2015, sliding 8.79% compared with the Sensex's 0.93% fall. The scrip had, however, outperformed the market in past one quarter, advancing 17.36% as against Sensex's 2.36% rise.

The small-cap company has equity capital of Rs 109.77 crore. Face value per share is Rs 10.

According to reports, Kesoram Industries has internally valued its tyre factory at Haridwar, which it is looking to sell, at Rs 3573 crore. This is Rs 1200 crore more than what the company had invested in building it, as per reports. Kesoram proposes to sell the plant to subsidiary Cavendish Industries in an all-stock deal, reports suggested.

Kesoram Industries reported a net loss of Rs 244.60 crore in Q3 December 2014, higher than net loss of Rs 88.28 crore in Q3 December 2013. Net sales declined 2.2% to Rs 1211.18 crore in Q3 December 2014 over Q3 December 2013.

Kesoram Industries is a diversified company. The company manufactures tyres, cement, rayon yarn and transparent paper.

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