ALSO READCement shares in focus; UltraTech, India Cements, JK Lakshmi hit new highs Strong realisations help Ambuja Cements beat Street estimates in Q2 Street calm despite dip in cement prices ACC, Ambuja, UltraTech look to differentiate brands, expand footprint Strong pricing in western India drives gains for Ambuja Cements
The frontline cement shares like ACC, Ambuja Cements, India Cements, UltraTech Cement and Shree Cement were up in the range of 1% to 4% at 01:35 PM; as compared to 0.06% rise in the S&P BSE Sensex. Sanghi Industries, Saurashtra Cement, NCL Industries, Mangalam Cement and KCP were up between 2% to 5% on BSE.
For the period April‘17 to July’17, the cement production has declined by 3.5% to 95.37 million tonnes vs 98.87 million tonnes during the same period last year.
Real estate and housing which constitutes two-third of the cement consumption has seen very low inventory addition as claimed by various industry sources.
CARE Ratings expects the same to persist as clarity on RERA implementation would continue to evolve during the coming quarters. The newly implemented Act (RERA) along with the regulations and compliances is making developers cautious.
“We expect the cement production to remain subdued in the coming quarter. We see overall recovery starting Q3 FY17. Infrastructure project implementation, led by Smart City Projects across 60 cities and national highway projects would be major demand drivers in infrastructure segment. Implementation in the first batch of 20 smart cities has already taken off in stages, and for the remaining 40 smart cities chosen in September 2016, we expect the project implementation to begin Q3 FY17 onwards which should drive demand for cement,” it added.
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