 "A worker unloads a sack filled with cement at a railway yard in Ahmedabad")
Shares of cement companies are in focus and rallied by up to 20% on the bourses in noon deal trade. Ambuja Cements, Birla Corporation, OCL India and Orient Cement have surged more than 5%, while ACC, UltraTech Cement, Prism Cement, Shree Cement, JK Lakshmi Cement and India Cements up 2%-5% on the BSE.
Since March 11, most of the cement stocks have outperformed the market after the Union cabinet on cleared a proposal to amend the mines and minerals law to allow the transfer of captive mines granted through non-auction routes, a move likely to spur mergers and acquisitions (M&As) in the cement industry. CLICK HERE TO READ FULL REPORT.
According to Religare Institutional Research believes the cement industry should see 9-10% growth in Q4 (January-March).
“January and February have seen volume growth surge for cement players, with large-caps ACC and Ambuja Cements reporting 10%+ growth YoY and UltraTech Cement likely showing similar trends. Shree Cement has seen the strongest volume growth at 35% YoY, followed by J K Lakshmi Cement at 25%+,” the brokerage said in a client note.
“We believe earnings downgrades, particularly for large-caps, are nearing an end as volume and pricing have turned favourable and cost benefits have begun to flow in”, added report.
Among the individual stocks, OCL India locked in upper circuit of 20% at Rs 484 on the BSE. Birla Corporation surged 10% to Rs 386, while Ambuja Cements gained 7% to Rs 220 in intra-day trade.
Since March 11, most of the cement stocks have outperformed the market after the Union cabinet on cleared a proposal to amend the mines and minerals law to allow the transfer of captive mines granted through non-auction routes, a move likely to spur mergers and acquisitions (M&As) in the cement industry. CLICK HERE TO READ FULL REPORT.
According to Religare Institutional Research believes the cement industry should see 9-10% growth in Q4 (January-March).
“January and February have seen volume growth surge for cement players, with large-caps ACC and Ambuja Cements reporting 10%+ growth YoY and UltraTech Cement likely showing similar trends. Shree Cement has seen the strongest volume growth at 35% YoY, followed by J K Lakshmi Cement at 25%+,” the brokerage said in a client note.
“We believe earnings downgrades, particularly for large-caps, are nearing an end as volume and pricing have turned favourable and cost benefits have begun to flow in”, added report.
Among the individual stocks, OCL India locked in upper circuit of 20% at Rs 484 on the BSE. Birla Corporation surged 10% to Rs 386, while Ambuja Cements gained 7% to Rs 220 in intra-day trade.
| Name | 11/03/2016 | 16/03/2016 | LTP | % chg* | %chg# |
| OCL India | 407.00 | 403.05 | 483.65 | 20.00 | 18.83 |
| Ambuja Cements | 200.75 | 205.80 | 219.30 | 6.56 | 9.24 |
| Birla Corpn. | 346.50 | 349.40 | 369.50 | 5.75 | 6.64 |
| Sanghi Inds. | 52.20 | 51.20 | 53.90 | 5.27 | 3.26 |
| Saurashtra Cements | 50.90 | 53.75 | 56.55 | 5.21 | 11.10 |
| Prism Cement | 72.65 | 76.20 | 79.70 | 4.59 | 9.70 |
| Orient Cement | 138.50 | 137.45 | 143.75 | 4.58 | 3.79 |
| India Cements | 74.80 | 77.00 | 80.35 | 4.35 | 7.42 |
| Udaipur Cement | 9.38 | 9.58 | 9.95 | 3.86 | 6.08 |
| ACC | 1227.15 | 1237.55 | 1282.50 | 3.63 | 4.51 |
| Heidelberg Cement | 72.15 | 73.05 | 75.50 | 3.35 | 4.64 |
| JK Lakshmi Cement | 298.45 | 305.15 | 314.05 | 2.92 | 5.23 |
| UltraTech Cement | 2990.55 | 2974.35 | 3046.85 | 2.44 | 1.88 |
| Shree Cement | 11275.55 | 11448.30 | 11685.40 | 2.07 | 3.63 |
| The Ramco Cement | 380.55 | 390.10 | 398.00 | 2.03 | 4.59 |
| Sensex | 24717.99 | 24682.48 | 24881.39 | 0.81 | 0.66 |
| LTP : Last traded price on BSE in Rs at 01:37 PM | |||||
| * % change over 16/03/2016 | |||||
| # % change over 11/03/2016 | |||||
