Cement shares extend rally; UltraTech, Ambuja Cements hit six-month high
Shares of cement companies continued to trade higher for a third straight session on the bourses on expectation of strong show in the current quarter as volume growth picking up, mainly from the infrastructure sector.

UltraTech Cement (Rs 3,240) and Ambuja Cements (Rs 228) have touched their respective six-month high price, while The Ramco Cements (Rs 420) hit a 52-week high, while Shree Cement (Rs 13,020) touches four-month high on the BSE in intra-day trade.

Read more from our special coverage on “CEMENT”

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In past three–trading sessions, most of the frontline cement stocks rises more than 5% each as compared to 1.7% rise in the S&P BSE Sensex.

According to Religare Institutional Research believes the cement industry should see 9-10% growth in Q4 (January-March).

“We believe earnings downgrades, particularly for large-caps, are nearing an end as volume and pricing have turned favourable and cost benefits have begun to flow in”, added report.

UltraTech Cement said that the cement industry to witness strong demand growth ahead …in line with average historical multiple of GDP.

Demand to improve with government focusing on investment & infrastructure revival and various reforms, the company said in an investor conference in February.

The government’s focus on infrastructure is evident with the total targeted spending in FY17 increasing 28% over FY16.

This, along with a number of benefits provided on affordable housing, would aid recovery in cement demand, CRISIL Research said in a Budget analysis.

Name 16/03/2016 LTP % chg
OCL India 403.05 475.50 17.98
Sanghi Inds 51.20 59.50 16.21
Mangalam Cement 194.10 221.60 14.17
Saurashtra Cement 53.75 61.25 13.95
Deccan Cements 542.75 618.00 13.86
Birla Corpn. 349.40 396.40 13.45
Dalmia Bharat 696.00 780.00 12.07
ACC 1,237.55 1,369.70 10.68
JK Lakshmi Cement 305.15 337.25 10.52
NCL Inds. 89.05 98.40 10.50
Ambuja Cements 205.80 226.70 10.16
Shree Cement 11,448.30 12,584.00 9.92
K C P 74.70 81.70 9.37
India Cements 77.00 83.90 8.96
UltraTech Cement 2,974.35 3,218.00 8.19
Heidelberg Cement 73.05 78.90 8.01
Prism Cement 76.20 82.00 7.61
Orient Cement 137.45 147.55 7.35
Sagar Cements 375.70 402.00 7.00
The Ramco Cement 390.10 417.00 6.90
Sensex 24,682.48 25,092.00 1.66
LTP : Last traded price on BSE in Rs at 12:16 PM