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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.

SI Reporter  |  Mumbai 

Tyre
Tyre

Shares of has moved higher by 8% to Rs 99, extending its past three weeks rally on the after media report suggest that the company may demerge its loss-making 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 Sensex. 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. 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,” 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 industry globally to assist it in operating the 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 Sensex. A combined 3.26 million equity shares changed hands on the counter on the BSE and NSE so far.


First Published: Tue, December 04 2018. 12:11 IST
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