Cement Stocks Outlook
Seen muted next week in absence of major triggers
This story was originally published at 22:55 IST on 11 October 2024
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MUMBAI - Shares of cement companies may remain muted next week in the absence of major cues from the sector as well as the overall domestic market. Going forward, the September quarter earnings are expected to provide cues to these stocks. Some analysts remain cautious about the industry due to subdued volume and weak pricing.
Cement is one of only two sectors expected to report an on-year fall in net profit and revenue. Among the five cement companies in the Nifty 200 index, Grasim Industries is the only company that could post earnings growth during the quarter.
The sector saw weak demand in September due to the heavy monsoon and festival season, analysts said, adding that they do not see "any meaningful" price hikes in the near term. "The industry may witness some respite from the cost front considering stable diesel prices, higher usage of green energy and other cost initiatives," YES Securities said in its earnings preview report. This week, the muted-to-negative performance of the overall Indian equity market was reflected by shares of cement companies too.
TOP HEADLINES
* Earnings Outlook: Weak demand to pull down Shree Cement Jul-Sept PAT 85% YoY
* Lenders waive JK Lakshmi Cement's INR 16.4-bln corporate guarantee for arm
* Ambuja Cements denies report co in talks to buy HeidelbergCement India
* Earnings Outlook: Lower cement price, less demand may hit UltraTech Jul-Sept
* Shree Cement gets NCLT approval for scheme of amalgamation of subsidiaries
* Nuvoco Vistas declared preferred bidder for three limestone blocks
* PRESS: Adani group in talks to acquire Heidelberg's Indian cement unit
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 | 2312.45 | (-)5.00 | 2346.60 | 2283.40 |
| Ambuja Cements | 585.20 | (-)4.20 | 596.80 | 577.30 |
| India Cements | 362.45 | (-)0.20 | 365.50 | 359.50 |
| Shree Cement | 24337.05 | (-)6.50 | 24842.60 | 23967.20 |
| UltraTech Cement | 11421.30 | (-)0.30 | 11524.70 | 11308.50 |
| Nifty 50 | 24964.25 | (-)0.20 | 25079.60 | 24862.40 |
| S&P BSE Sensex | 81381.36 | (-)0.40 | 81819.50 | 81085.10 |
End
Reported by Anjana Therese Antony
Edited by Ashish Shirke
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