Orient Cement Stock Research

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Orient Cement Overview

Orient Cement is part of CK Birla Group of Companies. The CK Birla Group is an Indian conglomerate named after Chandra Kant Birla. Orient Cement was formerly, a part of Orient Paper & Industries.

It was demerged in the year 2012, since then it has witnessed a six fold increase in the market capitalization in a very short period (as per the company website).

It sells cement under the brand name Birla A1 cement. As of now company has below plants operational

  • The cement production capacity of the Devapur plant is 3.0 MTPA
  • Clinker grinding plant in Jalgaon, Maharashtra of 2.0 MTPA cement production capacity
  • Chittapur Located in Gulbarga in Karntaka, the unit was commissioned in 2015 with a capacity of 3.0 MTPA

As of now the current capacity of the company is 8 MTPA, and ambitious expansion plan, Orient Cement is aspiring to reach 15 MTPA by 2020. Now lets see how the company has performed over the years for investors.

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Orient Cement Share Performance

Below graph shows share price performance of the company over the years. It will give you glimpse of company performance as well compared to claims made on the website or other sources.

Orient Cement Share Price Performance 2018
Orient Cement Share Price Performance 2018

Orient Cement made debut on exchanges in year 2013 with initial price of 57. The stock stayed at those levels for one year or so period and gradually moved towards the higher ranges of close to 200 levels. The company traded in range after year 2015.

This is understandable as company moved 4 times in previous years. During consolidation phase it traded between 150 to 200 range. With recent correction it has moved below 100 levels.

The dividend yield of the company is also decent. On these levels company gives around 1% dividend. The IPO investors have made money in this company if we exclude the fall in year 2018.

So overall the company has performed well for investors and with recent expansion plan it may well outperform in future as well. The only problem is expansion plan should play well and executed flawlessly.

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Orient Cement My opinion

The ace investor Rakesh Jhunjhunwala has invested in Orient Cement. There are many good Cement stocks available in market. Cement sector can be divided into two parts Cement Major companies and Cement minor companies.

Rakesh Jhunjhunwala having stake in this company have made it special. This is the reason I have analyzed this company briefly here. Many other top investors of India have other cement companies in their portfolio.

So if you are planning to invest in Cement sector then you should analyze good companies in the sector and then make a decision. You can add those companies to your stock watchlist and see how they perform over the years and news related to them.

Personally few things work well for Orient Cement. It has proven Management. The brand name Birla have reputation in India. This works in favor of the company. The expansion plan will also be boost to the company.

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Cement sector is poised to grow in India. India is developing country and has massive construction work in future. So the sector will perform well over the years.

This is the theme Rakesh Jhunjhunwala and other ace investors are playing with. If you want to play this theme then you can analyze the companies in details and come with a conclusion.

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