Shares of KCP Ltd. are up another 13% on Thursday after Wednesday's 18% rally. At the highest point of Thursday's trading session, which was at ₹238, the stock has risen nearly 40% in two trading sessions.
The surge was triggered after the Chandrababu Naidu-led TDP-BJP-JSP alliance routed the Jaganmohan Reddy regime, winning 165 out of 175 seats in the Andhra Pradesh assembly election.
ALSO READ: View | A tale of two EM elections
The Telugu Desam Party (TDP) vowed to reinstate Amaravati as the capital city, a plan that was shelved by the outgoing state government. Now with Naidu's comeback, his dream project that he had for Amaravati could be back on the table.
Andhra Pradesh currently has three capitals—
Administrative capital – Visakhapatnam
Legislative seat – Amaravati
Judicial capital – Kurnool
The street now believes that the focus will shift back to Amaravati. Naidu is likely to take the oath as Chief Minister on June 9 in Amaravati, according to reports.
Here's a list of companies with capacity share in Andhra and Telangana—
The key businesses that KCP has is cement and sugar, which constitutes 96% of the company's total revenues.
Smaller divisions include the engineering as well as their hotel business.
1. Cement unit
The entire company is valued at around ₹1,800 crore.
KCP has a market capitalisation of around ₹2,600 crore. The company has a net cash of ₹500 crore as of March 2024.
KCP Ltd. holds 67.23% in KCP Vietnam Industries. Its capacity is around 11,000 TCD.
Institutions hold about 2.58% stake in the company while no single institution name features at over 1%.
Shares of KCP are now at a record high. This is also the most that the stock has gained in a calendar year after 2021.
The surge was triggered after the Chandrababu Naidu-led TDP-BJP-JSP alliance routed the Jaganmohan Reddy regime, winning 165 out of 175 seats in the Andhra Pradesh assembly election.
ALSO READ: View | A tale of two EM elections
The Telugu Desam Party (TDP) vowed to reinstate Amaravati as the capital city, a plan that was shelved by the outgoing state government. Now with Naidu's comeback, his dream project that he had for Amaravati could be back on the table.
Andhra Pradesh currently has three capitals—
Administrative capital – Visakhapatnam
Legislative seat – Amaravati
Judicial capital – Kurnool
The street now believes that the focus will shift back to Amaravati. Naidu is likely to take the oath as Chief Minister on June 9 in Amaravati, according to reports.
Here's a list of companies with capacity share in Andhra and Telangana—
- UltraTech Cement: 12 MTPA
- My Home Industries: 9.8 MTPA
- Penna Cement: 9 MTPA
- Sagar Cement: 8 MTPA
- India Cement: 7 MTPA
The Chennai-based company when compared to some of these larger names is relatively smaller.
KCP's business model
The key businesses that KCP has is cement and sugar, which constitutes 96% of the company's total revenues.
Smaller divisions include the engineering as well as their hotel business.
1. Cement unit
- Cement capacity of 4.3 MTPA with limestone reserves
- Its strategically located near Amravati.
Valuing the cement business
| Enterprise Value / tonne | Cement Enterprise Value |
| $50 / tonne | ₹1,800 crore |
| $60 / tonne | ₹2,150 crore |
The entire company is valued at around ₹1,800 crore.
Balance Sheet
KCP has a market capitalisation of around ₹2,600 crore. The company has a net cash of ₹500 crore as of March 2024.
Sugar Business
KCP Ltd. holds 67.23% in KCP Vietnam Industries. Its capacity is around 11,000 TCD.
| Financial Year 2024 | |
| Revenue | ₹1,144 crore |
| EBIT | ₹239 crore |
Institutions hold about 2.58% stake in the company while no single institution name features at over 1%.
Shares of KCP are now at a record high. This is also the most that the stock has gained in a calendar year after 2021.
First Published: Jun 5, 2024 3:59 PM IST
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