Informist, Friday, Dec. 6, 2024
MUMBAI – Shares of most cement companies are expected to rise further next week due to expectation of price hikes, pickup in the government's capital expenditure cycle, and more infrastructure-related orders. Rising input costs and operational expenses are likely to push cement companies to hike prices, two analysts tracking the sector said. The demand environment is also expected to improve, they said.
"We are positive on some regional names (cement companies). But the larger pan-India ones, they come with fairly aggressive valuation," George Thomas, equity fund manager at Quantum Asset Management Co., said.
This week, Informist exclusively reported that cement companies are considering a price hike of INR 30-50 per 50-kg bag. UltraTech Cement, ACC, Ambuja Cements, India Cements, Orient Cement, and Shree Cement are planning to increase prices, sources told Informist.
On Monday, media reports, attributing Nomura, said the average trade price of cement rose by INR 5 per bag in India in December to INR 342 per bag. The broking firm's report said cement dealers are uncertain about whether the price hikes will sustain. Prices have risen INR 16 per bag in the eastern part of the country and INR 13 per bag in the north, Nomura said, according to reports.
This week, most cement stocks rose from the previous week. India Cements which declined marginally. Among the top gainers were JK Cement and Sagar Cements which rose over 7% and 9%, respectively, this week. During the September quarter, cement companies were among the poor performers with respect to earnings due to muted demand, slowdown in government's capital expenditure, lower realisation and sales volumes.
TOP HEADLINES
* Cement cos mull INR 30-INR 50 per 50-kg bag price hike but dealers opposed
* UltraTech ups Kukurdih unit's capacity by 600,000 tn per annum to 3.3 mtpa
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 LTD | 2258.35 | 1.60 | 2289.10 | 2238.10 |
| AMBUJA CEMENTS LTD | 565.30 | 6.40 | 576.80 | 558.70 |
| ANDHRA CEMENTS LTD | 85.25 | 6.80 | 88.90 | 82.20 |
| GRASIM INDUSTRIES LTD | 2701.90 | 3.70 | 2731.70 | 2678.40 |
| J.K. CEMENT LTD | 4596.65 | 7.40 | 4673.50 | 4543.60 |
| JK LAKSHMI CEMENT LTD | 807.00 | 3.50 | 835.20 | 791.90 |
| SAGAR CEMENTS LTD | 236.68 | 9.60 | 248.80 | 229.50 |
| SHREE CEMENT LTD | 27076.65 | 3.80 | 27537.30 | 26284.90 |
| ULTRATECH CEMENT LTD | 11848.50 | 5.80 | 12012.60 | 11735.90 |
| INDIA CEMENTS LTD | 360.20 | (-)1.50 | 371.30 | 352.60 |
| NIFTY 50 | 24677.80 | 2.30 | 24813.70 | 24552.60 |
| BSE SENSEX | 81709.12 | 2.40 | 82133.50 | 81294.00 |
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.
Share this Story:
