Cement shares extends rally on talk of hike in cement prices

UltraTech Cement, Ramco Cements, Prism Cement, Kesoram Ind, Birla Corp and JK Cement are up 2-5% on BSE.

Shares of cement companies trading higher by up to 5%, extending their previous day’s rally on the bourses on reports that cement manufacturers have hiked the cement prices in Telangana and Andhra Pradesh.

Ramco Cements (up 5% at Rs 344), Prism Cement (4% at Rs 93.75), Kesoram Industries (4% at Rs 121), Birla Corporation (up 4% at Rs 476), JK Cement (up 4% at Rs 649) and Dalmia Bharat (up 3% at Rs 479) are up 3-5% on the BSE.

At 0955 hours, UltraTech Cement up 2.5% at Rs 2,884, after hitting a record high of Rs 2,895 on BSE in early morning trade. ACC (Rs 1,469), Ambuja Cement (Rs 232) and (Rs 3,589) are from the large-cap up 1-2%.

“The price of cement per bag of 50 kg is now in the range of Rs 330 to Rs 340 in Hyderabad, while in Telangana and Andhra Pradesh it is slightly lower at Rs 310- Rs 340. The increase in price was in the range of Rs 50-80 compared with prices prevailing last month”, the Business Line report suggests.

This was the steepest hike after October 2014, added report.

Meanwhile, analysts at Prabhudas Lilladher reiterate Overweight outlook on the sector on the back of improved demand outlook, slowing pace of addition and exit of weak players.