JK Cement stock in focus after firm emerges as ‘preferred bidder’ for mining lease in Rajasthan

The NSE filings showed that JK Cement participated in a e-auction conducted by the Rajasthan government for the mining lease of Maliyakheri Limestone Block-I located in Chittorgarh.

“We wish to inform you that the Company has participated in the e-auction conducted by the Government of Rajasthan wherein the Company has been declared as the ‘Preferred Bidder’ for the Mining lease of Maliyakheri Limestone Block-I, situated in Chittorgarh, Rajasthan,” the company informed the stock exchanges.

The filings also highlights that the Limestone Block in Chittorgarh is spread across a total area of 6.90 hectares of land, which will give the company an opportunity to source the key mineral which is required for cement production.

Latest updates

Last week on Thursday, the company also emerged as the ‘preferred bidder’ for a mining lease in the Karunda Limestone Block-I, which spans across 35.98 hectares in Chittorgarh, Rajasthan.

On April 15, JK Cement also announced that the company has invested ₹2.10 crore in Mehrauni Electro Power Pvt. Ltd to acquire 21 lakh equity shares of the company at a face value of ₹10 per share, representing a 9.77% stake of the private entity.

The company’s acquisition move comes as JK Cement aims to strengthen its long-term renewable energy strategy, according to the exchange filing.

JK Cement share price

JK Cement shares closed 3.7% lower at ₹5,584 after Friday’s stock market session, compared to ₹5,799 at the previous market close, according to NSE data. The company announced its order update on Sunday, April 26.

Shares of JK Cement have delivered more than 99% returns in last five years, over 93% gains to investors in last three years, and 6.4% returns in the past one year period, according to the exchange data.

On a year-to-date basis, the company’s stock was up 1.8%, and has gained 9.3% in the past one month period. JK Cement shares were trading 1% higher over the last five market sessions.

The company’s market capitalisation (M-Cap) stood at ₹43,266.36 crore as of Friday’s stock market close.