Mangalam Cement Shares Rise as Firm Wins Rajasthan Mining Bid; Promoter Stake Grows

Shares of Mangalam Cement Ltd edged up 1.91% to ₹762.20 on Tuesday after the company was declared as the Preferred Bidder for a mining lease in Rajasthan. The e-auction process for the lease of the Nimana-Duniya Extension Block in Kota was conducted by the state government on July 4, 2025, using the MSTC portal.

The mining win is a strategic addition to the company, which has manufacturing facilities in Morak (Rajasthan) and Aligarh (Uttar Pradesh) and uses the Birla Uttam brand. The company now has a combined cement manufacturing capacity of 4.4 million tonnes per annum (MTPA) and a clinker capacity of 2.7 MTPA.

The company has a market cap of over ₹2,000 crore, with revenue of ₹1,381 crore and a net profit of ₹45 crore in FY25. The stock has given a CAGR of over 30% over the last five years and returned more than 230%. It has risen 14.5% from its 52-week low of ₹665.

Promoter confidence has also strengthened. In the March 2025 quarter, promoter holding increased to 39.52%, up from 37.81% in December 2024, reflecting the purchase of 4.7 lakh shares in the quarter. A year ago, holding stood at 36.94%, highlighting a consistent accumulation trend.

Mangalam Cement sells mainly in Uttar Pradesh (43%), Rajasthan (32%), and Madhya Pradesh (18%), with smaller sales in Delhi and other states. The firm, part of the B.K. Birla Group and led by Smt. Vidula Jalan has been manufacturing cement since 1976.

On Tuesday, the stock opened at ₹747.10 and hit an intraday high of ₹772.75, with a volume-weighted average price of ₹762.15.

The mining lease win is expected to support raw material security and long-term operational strength a positive signal for investors and industry watchers alike.