Shree Cement on Friday reported a 15.2% YoY drop in Q2 consolidated net profit at ₹263 crore, while its revenue from operations grew by 23.9% YoY to ₹5,897 crore.
Share price of India Cements soared 9% to ₹359 on the BSE with a combined 35.96 million shares representing 11.6% of the company's total equity changing hands on the NSE and BSE on Thursday.
Cement demand is likely to improve, but higher fuel, packaging and logistics costs could weigh on margins and delay earnings upgrades until the fourth quarter of FY27
Looking beyond the Q1, analysts expect domestic cement demand to grow at a healthy 6-8 per cent CAGR over FY27-FY29, driven by sustained public infra investments and housing demand.
Cement makers face surplus capacity and elevated costs, with stronger demand and lower fuel prices expected to drive earnings and valuations in the second half of FY27
Shree Cement's revenue from operations rose 10.3 per cent year-on-year to ₹6,101 crore from ₹5,532 crore in the corresponding quarter of the previous fiscal
For cement manufacturers, the primary concern is the sudden spike in energy costs as the industry relies heavily on imported fuel, which is now becoming significantly more expensive
Despite the two-day rally, in the past one month, cement companies stocks have underperformed the market by falling up to 17%, as against 8% fall in the BSE Sensex.
West Asia tensions may raise fuel and packaging costs for cement firms. Analysts see near-term margin pressure but suggest accumulating large-cap cement stocks.
FM Sitharaman announced a tax holiday until 2047 for foreign companies providing global cloud services from India, provided services to Indian customers are routed via an Indian reseller
In its latest note, Choice Institutional Equities reaffirmed its 'Buy' rating on JK Cement, assigning a target price of ₹7,200, implying major upside from prevailing levels.
