Share prices of most cement companies which reportedly announced price hikes rose even as the overall markets fell. Shares of UltraTech Cement, India Cements, and Ramco Cements gained around 1% intraday on Thursday.
The stocks rose after Informist, citing dealers, in a report said cement manufacturers in Telangana, Andhra Pradesh, and Tamil Nadu announced price hikes of Rs 10-30 per 50-kg bag.
The report said the prices have been hiked by brands including UltraTech Cement, India Cements, Dalmia Bharat, Ramco Cements, ACC, Ambuja Cement, Chettinad, NCL Industries, Sagar Cements, and Orient Cement.
Most stocks rose following the news except Sagar Cements and Orient Cement.
Intraday, Sagar Cements share price hit Rs 224.52, its lowest level since August 16.
Systematix Institutional Research in a report noted that India's key infrastructure sector saw 1.8% contraction in August largely led by excessive rains in various parts of the country.
"Moreover, general elections and slower infrastructure execution also compromised demand," it said. "Despite hopes of demand revival from the fag end of Q3, we expect the cement industry growth to taper off from 8-9% to 4-5% for FY25 due to sustained slowdown in demand."
The report added that lower volumes and realisations will impair an already soft EBITDA/tn in Q2FY25 and long term growth prospects continue to remain sanguine backed by strong push in housing and infrastructure initiatives. The brokerage's top picks within the sector include UltraTech, ACC and Sagar Cements.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
