Cement stocks continue to crack

Ambuja Cements slipped below Rs 160 on the BSE; UltraTech Cement down 0.8% at Rs 1,635

Shares of India's top cement majors are struggling in today's trade even as the benchmark indices are showing signs of bouncing back.

 

Ambuja Cements, part of Swiss major Hoclim, slipped below Rs 160 on the BSE and is currently trading at Rs 159.15 at 10:35 am. Its sister-concern ACC too, continues to trade weak as the counter continues to remain weak below Rs 1,100 mark. The company's stock is trading at Rs 1,068.05 currently.

 

UltraTech Cement, India's largest cement maker with capacity of 53 mtpa, could not remain an exception. The counter is down 0.8% at Rs 1,635.

 

Cement prices have remained under pressure, courtesy good monsoons across the country. Lower cement consumption is not letting cement companies use their capacity fully. The average capacity utilisation of the sector is hovering around 70% which is far below than utilisation levels during hey days of beyond 100%.