UltraTech Cement ACC

Lack of agreement over valuation spurs decision; deal would have provided relief to Indian lenders, which have an exposure of Rs 28,753 crore to Jaiprakash

Jaypee-owned firm undergoing bankruptcy process

Cost pressures a concern, though, as crude, currency volatility remain

Adani aims to become India's top cement company by 2030; rival Ultratech stepping up capacity

India Cements had indicated in its FY22 annual report that it had acquired 184.53 hectares of limestone-bearing land at Pawai Tehsil in Panna District of Madhya Pradesh.

Most analysts have a 'sell' or 'reduce' recommendation on the sector

It still beat Q1 estimates despite decline on both YoY and sequential bases

Other key players have also announced plans to significantly raise capacities

Stocks to Watch Today: Shares of Adani Wilmar, Jindal Stainless, Adani Enterprises, Hero MotoCorp, Tata Steel and Titan too shall be in focus ahead of the Q4 results.

Going ahead, charts indicate likely revival in investor sentiment with further uptick in prices.

Apart from higher coal/petcoke prices, the recent increase in crude prices/ocean freight rates may further put pressure on operating costs for the cement industry.

The company had posted a net profit of Rs 2,157.12 crore during the October- December quarter of the previous financial year, Grasim Industries said in a regulatory filing

Ambuja Cements, The Ramco Cements look weak on charts, while UltraTech Cement seems the best bet in the sector.

The significant pick up in the infra activity backed by the NIP is likely to see healthy traction in terms of new project awards and execution medium term, which is expected to boost cement demand.

Following around 10 per cent YoY growth in volumes in Q3FY21, Motilal Oswal Securities expects the sector's volumes to grow around 20 per cent YoY in Q4FY21

The cement industry demand is slowly improving due to pent up demand and improved rural demand

UltraTech, Shree Cement, JK Cement, and Ambuja Cements among analyst picks

JK Lakshmi Cement, UltraTech Cement, HeidelbergCement India, Dalmia Bharat and JK Cement were up in the range of 2 per cent to 4 per cent on the BSE

Individually, ACC rallied 6%, Ambuja Cements & JK Cement surged 5% each, while Ramco Cements, Shree Cement, India Cements, Heidelberg Cement India & UltraTech Cement were up in the range of 2% to 4%

After the demand disruption caused by the nation-wide lockdown, there has been a recovery in demand in the rural areas, primarily driven by pre-monsoon work.