Analysts remain positive on Ambuja Cement's long-term market share gains, but caution against any possible dent in the company's profitability due to excess supply in the market
The company's new board approved an infusion of Rs 20,000 crore by way of preferential allotment of 477 million convertible warrants at a price of Rs 419 to Harmonia Trade and Investment
The domestic broking industry has seen a sharp decline in new account openings in the past two months
The geopolitical tensions between Russia and Ukraine have resulted in sharp increase in pet coke and coal prices, thereby, denting overall profitability of the business.
Analysts have downgraded the related sectors, and have cut earnings estimates for FY23 and FY24 factoring the near-term challenges
In current times of weak demand, high fuel costs and entry of a new player (Adani group), any significant capacity announcement may be viewed negatively by the market, according to analysts
Shares of cement companies like UltraTech Cement, Dalmia Bharat, JK Cement, The Ramco Cements and Shree Cement were down in the range of 2 per cent to 6 per cent.
Stocks to Watch Today: AU Small Finance Bank will be in focus as the company has set June 10 as the record date for the proposed 1:1 bonus issue.
Charts of steel stocks signal further downside, indicating a fall up to 20 per cent in select shares; cement counters indicate a wait-and-watch approach
The management remained cautious over profitability of cement companies in the near future as it does not anticipate any relief in cost pressure.
According to a Bloomberg report, Gautam Adani's conglomerate is in advanced talks to acquire Holcim Ltd.'s businesses in India.
Holcim Ltd., the world's biggest cement maker, is considering a potential sale of businesses in India including Ambuja Cements.
Ambuja Cement is exhibits a positive bias, and is likely to further gains on follow-up buying; whereas other cement stocks need to overcome major hurdles.
Stocks to watch today: Shares of brokerage firms Angel One and ICICI Securities are also likely to be in focus ahead of the corporate earnings on Wednesday.
Going ahead, charts indicate likely revival in investor sentiment with further uptick in prices.
The commodity price rise has begun weighing on most sectors. One such industry is cement, which is facing the heat of high input costs. Given the uncertainty, how can investors play the theme?
Analysts believe current input cost headwinds are transitory as likely price hikes by companies will help aid margin pressures.
Despite these ongoing cost related challenges, demand outlook is expected to stay healthy from long-term perspective
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.
Shares of state-owned construction & engineering company NBCC (India), meanwhile, soared 13 per cent to Rs 39 on the BSE