Shares of cement companies are continuing their upward march ahead of monthly dispatch figures for the month of September. Meanwhile, the brokerages have also upgraded earning estimates for the financial year 2013 (FY13)
Ambuja Cements, Shree Cement, India Cements, ACC, UltraTech Cement, Madras Cement and Mangalam Cement are trading higher by 1-6% on the Bombay Stock Exchange. Most of these companies will declare their September month dispatch figures today.
Meanwhile, analyst at IIFL Institutional Equities upgraded earnings estimates for cement companies by up to 5% for FY13 and up to 27% for FY14 saying that deficit in monsoon has reduced substantially post revival in August and September, which is likely to result in continuation of strong rural demand.
Analyst expect higher probability of strong demand growth in FY14 post revival in monsoon and pre-election demand as more states face elections in FY14 and FY15.
Among the individual stocks, Shree Cement has rallied over 12% at Rs 4,442 and Ambuja Cements by 3.5% at Rs 209 on the BSE. Both these stocks are trading at their all-time highs.
