Shares of leading cement companies such as ACC, Ambuja Cements, Ultratech Cement and Prism Cement rose 2-3 per cent today.
Dealers at several broking firms said there was buying from institutional investors on expectation of good financial performance from these companies on the back of robust demand from infrastructure and real estate sectors.
Already, cement prices are on a boil. A majority of cement manufacturers have raised prices by Rs 3-5 per 50 kg bag from February 1, which has pushed the average national price to Rs 235 per bag. In November 2009, the average was Rs 210-215. The share price of ACC rose 3.2 per cent to Rs 869.15 on the Bombay Stock Exchange (BSE). Ambuja Cement rose 3 per cent to Rs 103.75, Ultratech Cement gained 2.9 per cent to Rs 955 and Prism Cement rose 2.1 per cent to Rs 49.15. The key benchmark equity index of the Bombay Stock Exchange, Sensex, rose 0.67 per cent.
According to Rupesh Sankhe, cement analyst at Mumbai-based Angel Stock Broking, the demand for cement will remain robust for the entire quarter due to revival in real estate and infrastructure sectors. “In December 2009, the volume of cement manufactured in India stood at 14 million tonnes and the demand growth was 8-9 per cent during November and December last year. This year, all cement factories in northen and eastern states are running at full capacity and the demand growth is likely to be over 11 per cent in the next quarter,” said Sankhe.
