To fuel India's growth, Ambuja Cements has initiated capacity expansion projects of 20 MTPA, spanning every region of the country, over FY 2025-26
The renewed investor interest in the cement shares came on the back of reports that cement dealers have initiated price hikes since the start of December
While FY25 is seeing slow growth and subdued govt spending, CareEdge maintains a long-term outlook aligned with India's broader growth strategy with housing, continuing to be primary driver of cement.
The company expects gradual improvement in demand driven by increased government spending in the 2nd half of the fiscal and improved demand from urban and rural segments owing to good monsoon
The management believe that new infrastructure project orders will start gaining momentum, although it has been a subdued start from Q1 and during the reported quarter.
Barring HeidelbergCement most of the cement stocks look technically weak on the charts; Ambuja Cements is on the verge of seeing a 'Death Cross' formation on the daily chart.
UltraTech Cement's consolidated profit dropped 36 per cent year-on-year (Y-o-Y) to Rs 825 crore in the September quarter of FY25, from Rs 1,280 crore in the September quarter of FY24.
Analysts tracking the cement sector say that subdued economic activity in the first quarter is likely to weigh on sector leader UltraTech Cement's numbers, which reports its Q2 results today
Many analysts still remain positive about the sector's prospects, but most cement stocks have seen corrections in the last three months
Shares of cement companies have slid up to 19 per cent in the last four weeks on the NSE, against a 1.06 per cent jump in the benchmark Nifty50
Adani family was likely to sell around 3 per cent stake in Ambuja Cements via block deals
Management indicated that cement demand would remain weak until calendar year 2024-end and expects a full recovery from Q4FY25, brokerage firm MOFSL said.
India Cements stock hit a new high of Rs 343.85, surging 6% in an otherwise volatile market. The stock has zoomed 50% since June 25.
After Lok Sabha Elections and Assembly elections in some States, the centre and States are expected to retain their focus on development agenda, India Cements had said on sector outlook.
As per media reports, Adani Group was evaluating multiple cement companies like Penna Cement, Saurashtra Cement, JP Associates' cement business & Vadraj Cement for acquisition.
Cement stocks: The rally comes amid hopes of sustained push on infrastructure development and government-driven capex continuing in India
The surge in JK Lakshmi Cement share was fuelled by robust Q4FY24 results, which came in line with street estimates
Cement stocks investment strategy: Investors with a long-term horizon may strategically accumulate shares of fundamentally strong cement companies
Dalmia Bharat stock update: Dalmia Bharat stock tumbled in Thursday's trade after the company reported a 50 per cent drop in Q4 net profit on a YoY basis.
Analysts believe cement demand would remain healthy aided by expedited pre-election government spend, continued focus of infrastructure development.