Microcap stock in focus after signing ₹138 Cr MoU with Assam Govt for new fiber cement plant

This Construction stock is in focus after it Signed an MOU with the Assam Government  for a capacity expansion of 72,000 MTPA for an investment of Rs 138 Crores

Share Price Movement

With a market capitalization of Rs. 895 Crore, the stock of Everest Industries Limited opened at Rs. 559.10 down 1.34 percent from yesterday’s closing price of Rs. 566.75. But later made a high of Rs 580 up 2.33 percent.

Company Update

The company has signed a Memorandum of Understanding (MoU) with the government of Assam for Investment of Rs.138 Crores to set up a new fiber cement boards plant at Matia, Goalpara, Assam. 

The New plant will have a capacity addition of 72,000 Metric Tons Per Annum (MTPA) from its existing capacity of 301,000 Metric Tons Per Annum  (MTPA), its existing capacity utilization is at approx 73 percent. The total Investment required for the new plant is Rs 138 crores which will be funded by equity and/ or debt. Phase 1 of CAPEX is expected to be operational by April 2027 and phase 2 of CAPEX will be operational by April 2031.

The rationale given by the Company for capacity expansion is that Assam is a natural market for Boards and the demand in Assam for Boards is high. Plants in Assam can also serve the demand in the East. Footprint in Assam will enable Everest to have an Indian presence in all 4 zones. 

Also read: IT stock under ₹100 jumps 5% after receiving order worth over ₹10 Cr from NHAI

Financial Highlights

The company reported a 5.39 percent YoY increase in revenue from Rs. 352 Crore in Q3FY24 to Rs. 371 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 1.59 percent in revenue from Rs. 377 Crore in the previous quarter.

Their Net profit saw a turnaround from Profit of Rs. 1 Crore to a loss of Rs. 15 Crore YoY for the same period. On a QoQ basis, loss increased from Rs.12 crore to Rs. 15 Crore.

About the Company

Everest Industries Limited is a leading Indian manufacturer of building materials, providing a wide range of products for residential, commercial, and industrial applications. The company specializes in roofing, walling, ceiling, flooring, and cladding solutions, along with pre-engineered steel buildings. With multiple manufacturing facilities across India, Everest Industries has established a strong domestic presence while also exporting its products to various international markets.

Written By Abhishek Das

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