Most cement stocks gained on Thursday, led by leading producer Ultratech Cement, after analysts expressed optimism on the rising market demand for cement.
Ultratech Cement, which global brokerage CITI termed as ‘top pick’, gained nearly 2% in morning deals. The shares were in focus after surpassing ₹10,000 crore mark for the first time on December 13. The stock surged to a new lifetime high of ₹10,042.95 before closing at ₹9,739.35 apiece on BSE. Notably, the stock has given over 42% return so far this year.
CITI also named Dalmia Cement and Adani Group company Ambuja Cement as two ‘stocks of interest’ on the positive side.
In a note, CITI mentioned that most investors are constructive on cement demand. The brokerage explained that investors are selective about stock picking in cement space given rising supply and demand in the market.
Following analysts' view, most cement shares were trading with gains.
The world’s third largest cement producer Ultratech Cement gained nearly 2% to touch a high of ₹9,896.85 on BSE.
Adani group firm Ambuja Cements rose by 1.5% to a high of ₹517.45 on BSE. ACC Cement rose by 1.84% to ₹2,222.80 while Dalmia Bharat Ltd gained 0.39% to ₹2,383.
Among others, Ramco Cement rose by 0.23% to ₹1,051.60 apiece, JK Lakshmi Cement gained 0.24% at ₹881.05 and Birla Corporation by 0.44% to ₹1,399 on BSE.
However, India Cements, Shree Cements and Heidelberg Cement dropped up to 0.86%.
Meanwhile, Fitch Ratings also projected a steady 6-8% year-on-year growth in cement demand in India in 2024. The rating agency however thinks that the rising installed cement capacity will limit growth in producers’ profit margins in India.
(Edited by : C H Unnikrishnan)
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