Cement Stocks

Price wars led by increasing capacities and aggressive competition may mar prospects

Most managements continue to be positive on the cement demand, led by the government's thrust on infrastructure projects, pick-up in urban real estate, and likely recovery in the rural segment.

Finance Minister Nirmala Sitharaman on Tuesday said that the government will consider a review of the 28 per cent Goods and Services Tax (GST) levied on cement.

UltraTech Cement said that rising government spending, recovery in the rural economy on a pickup in farm incomes and pre-sales of housing real estate should also help the industry recover.

The BSE had sought clarification from Orient Cement on January 3, 2023, regarding reports stating that Adani Group was in talks to buy promoter stake In the company

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Is the worst over for the cement sector?

The cement industry has been one of the worst impacted this year with monumental declines in profits. But, as price hikes make a comeback, will the industry see a turnaround?

Meanwhile, Jaiprakash Associates dipped 8 per cent to Rs 10.81, falling 13 per cent from its intra-day high, and Jaiprakash Power Ventures declined 5 per cent to Rs 7.90 on the BSE.

With today's rally, the market price of JK Lakshmi Cement has zoomed 117 per cent from its 52-week low of Rs 368.65, touched on May 12, 2022.

Analysts expect cement stocks to witness catch up activity after months of underperformance as many negatives seem to be priced-in

The stock was trading higher for the third straight day and has gained 6 per cent during this period.

A return of foreign investors is bolstering the market, where the benchmark S&P BSE Sensex Index rose to an all-time high on Friday as risk assets rejoiced over a softer US inflation print

Except Ambuja Cements, Ultratech Cement, Ramco Cements, and India Cements need to surpass crucial key levels to lead to a rally ahead

Analysts expect industry margin to bottom out in Q2, with peaking of cost, higher exit of cement prices, and pick-up in construction activity in coming quarters

Brokerage says IT services firms score over cement on key parameters such as return on average capital employed, free cash flow to Ebitda ratio, dividend, and buyback payouts vis-a-vis PAT

Net sales up 7%; royalty agreement with Holcim terminated on Sept 16; paid Rs 264 cr as royalty and technical fees in CY21

Lenders said they are still awaiting the resolution of a debt worth Rs 21,658 crore with Jaypee Infratech -- the real estate arm of the group

Cement consumption in the Eastern region (131 Kg) is although lower than the national average (195 Kg), the market is likely to witness positive change in near future.

The higher demand will mitigate the impact of lower profitability on absolute operating profits and cash accruals of cement makers, cushioning their credit profiles, Crisil Research said

Despite of Wednesday's fall, most of the cement stocks have outperformed markets in the past one month, on consolidation hopes in the cement industry.