 "Cement shares gain; Ambuja Cements, Birla Corp up 3%")
Shares of cement companies have moved higher by up to 4% on the bourses on expectation of strong operational performance in the first quarter (April-June) of the current fiscal.
Birla Corporation (4% at Rs 512) and Ambuja Cements (3% at Rs 249) were up more than 2% each, while OCL India, UltraTech Cement, Mangalam Cement, Shree Cement, Dalmia Bharat, ACC and JK Cements were up 1% each on the BSE.
In the past one-month, most cement stocks have outperformed the market by gaining 10%-30%, as compared to 7% rise in the S&P BSE Sensex.
Most Cement companies reported better-than-expected January-March (Q4FY16) earnings aided by lower costs.
Antique Stock Broking believes better pricing and comfortable cost positioning will drive sharp EBITDA/t improvement in Q1FY17. Sharp improvement in cement pricing towards the back end of Q4 augurs well for at least 4-6% industry wide realization growth in Q1 and even higher growth for the North/Central/West based manufacturers.
The improving sector prospects augur well for the cement manufacturers and higher spend allocation towards infrastructure and housing projects over the next two-to-three years will drive a cyclical demand recovery, the brokerage said in a report.
Birla Corporation (4% at Rs 512) and Ambuja Cements (3% at Rs 249) were up more than 2% each, while OCL India, UltraTech Cement, Mangalam Cement, Shree Cement, Dalmia Bharat, ACC and JK Cements were up 1% each on the BSE.
In the past one-month, most cement stocks have outperformed the market by gaining 10%-30%, as compared to 7% rise in the S&P BSE Sensex.
Most Cement companies reported better-than-expected January-March (Q4FY16) earnings aided by lower costs.
Antique Stock Broking believes better pricing and comfortable cost positioning will drive sharp EBITDA/t improvement in Q1FY17. Sharp improvement in cement pricing towards the back end of Q4 augurs well for at least 4-6% industry wide realization growth in Q1 and even higher growth for the North/Central/West based manufacturers.
The improving sector prospects augur well for the cement manufacturers and higher spend allocation towards infrastructure and housing projects over the next two-to-three years will drive a cyclical demand recovery, the brokerage said in a report.
| Company | 23/05/2016 | LTP | % chg |
| Birla Corpn. | 370.60 | 506.50 | 36.7 |
| Dalmia Bharat | 855.30 | 1096.00 | 28.1 |
| India Cements | 84.10 | 102.30 | 21.6 |
| K C P | 77.60 | 88.35 | 13.9 |
| Ambuja Cements | 212.70 | 249.00 | 17.1 |
| Heidelberg Cem. | 94.10 | 107.00 | 13.7 |
| JK Lakshmi Cem. | 347.05 | 384.75 | 10.9 |
| The Ramco Cement | 487.40 | 547.75 | 12.4 |
| ACC | 1420.35 | 1573.25 | 10.8 |
| Shree Cement | 13068.40 | 14410.00 | 10.3 |
| Orient Cement | 152.20 | 163.45 | 7.4 |
| Century Textiles | 594.50 | 632.00 | 6.3 |
| J K Cement | 597.55 | 648.00 | 8.4 |
| UltraTech Cement | 3124.50 | 3335.00 | 6.7 |
| Prism Cement | 90.25 | 94.50 | 4.7 |
| Sensex | 25230.36 | 26983.26 | 6.9 |
| LTP: Last traded price on BSE in Rs at 03:23 PM | |||
