Cement Stocks Outlook
Seen muted next week, medium-term outlook bullish
This story was originally published at 23:29 IST on 4 October 2024
Register to read our real-time news.Informist, Friday, Oct. 4, 2024
MUMBAI - Shares of Indian cement companies may continue to see muted movement next week in the absence of major triggers. However, the impact of increase in prices by cement manufacturing companies and the government's push for infrastructure development is expected to push the share prices higher in the medium term, analysts said.
"Cement demand is expected to remain healthy in the longer term, led by buoyant demand from housing and significant outlay budgeted across infra segments. Companies, focusing on timely capacity additions, would be able to see strong volume growth," ICICI Direct Research said in a note Friday.
Antique Stock Broking expects the operating profit per tonne of cement companies under its coverage to increase to INR 1,160 per tonne by financial year 2026-27 (Apr-Mar) from INR 1,025 in 2023-24. This would be supported by lower fuel costs and better cost efficiencies, the broking firm said in its research report Friday.
This week, the weakness in the overall market was reflected in cement stocks too. Shares of Nifty 50 constituent UltraTech Cement closed 2.3% lower at INR 11,450.25 on the National Stock Exchange Friday.
TOP HEADLINES
* Cement cos up prices by INR 10-30/50 kg in Andhra, Telangana, Tamil Nadu
* IPO Alert: Ajax Engineering files for 22.88 mln share OFS-only issue
* Aditya Birla Real Estate arm sells 95% inventory for INR 6-bln booking value
* UltraTech Cement to up stake in Continuum MP Windfarm to 5.46% from 3.28%
* Dalmia Bharat wins INR 2.17-bln incentive case against West Bengal
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| ACC | 2433.75 | (-)2.00 | 2510.80 | 2376.60 |
| Ambuja Cements | 610.70 | (-)3.70 | 629.80 | 595.00 |
| India Cements | 363.10 | 1.10 | 368.40 | 357.40 |
| Shree Cement | 26034.20 | (-)0.80 | 26768.10 | 25498.10 |
| UltraTech Cement | 11450.25 | (-)4.20 | 12002.30 | 11104.00 |
| Nifty 50 | 25014.60 | (-)4.50 | 25673.70 | 24637.20 |
| S&P BSE Sensex | 81688.45 | (-)4.50 | 84032.10 | 80360.80 |
End
Reported by Anjana Therese Antony
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
