UltraTech share price gains 1.68% to 52-week high on Kesoram acquisition. Analysts see more upside.
UltraTech Cement share price scaled all time high of ₹9152 on the BSE in the morning trades on Friday gaining almost 1.7% post Thursday's announcement on planned acquisition of Kesoram Industries Cement assets by UltraTech . Analyst see more upside looking at benefits the acquisition will accrue. UltraTech Cement Ltd planned acquisition of Kesoram Industries Cement capacities is intended to strengthen its presence and help gain market share in the South and Western region of the country.
The step is also in the direction of the country’s largest Cement producer UltraTech achieving its targeted 200 million tonne per annum (mtpa) capacity mark from current 137.85 mtpa mark over time. The valuation of the deal though could be relatively expensive compared to its recent acquisitions however acquisition valuations is a tad lower than earlier large acquisitions of Century Textile Cement assets and JP Groups cement assets say analysts. Also Read- Buy or sell: Vaishali Parekh recommends three stocks to buy today — 1st December The Cement Business of Kesoram consists of 2 integrated cement units at Sedam (Karnataka) and Basantnagar (Telangana) with a total capacity of 10.75 mtpa.
Out of this total capacity, 8.50 mtpa is clinker backed and 2.25 mtpa is surplus grinding capacity. The cement business also has a 0.66 mtpa packing plant in Solapur, Maharashtra. Under the demerger scheme.
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