Cement Stocks Outlook for the week – 24 to 28.04.2017
Cement Stocks Outlook for the week – 24 to 28.04.2017
The share of cement companies are seen positive next week, as recent price hikes undertaken by these firms are seen aiding profits. Since February, cement manufacturers have increased prices by 20-70 rupees per 50-kg bag in different parts of the country. The price hikes came in the wake of a revival in cement demand, which was hit by the government's decision to demonetise 500 and 1,000 rupee currency notes in November to curb black money. The prices have improved in last couple of months and may go up further, as the demand is expected to increase. In the Union Budget for 2017-18 (Apr-Mar), the government had allocated a record 3.96 trln rupees to infrastructure. This, along with the push for affordable housing, is seen positive for the industry and is likely drive demand for cement. Investors will also track the financial results of cement companies for Jan-Mar. ACC Ltd was the first major cement company to report its earnings for the quarter ended March. Today, the company reported a consolidated net profit of 2.1 bln rupees for Jan-Mar, down 8.9% on year. Other cement companies will report their earnings in the coming days. High prices of petroleum coke and high freight costs could hurt realisations in Jan-Mar quarter.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 24 to 28.04.2017
The share of cement companies are seen positive next week, as recent price hikes undertaken by these firms are seen aiding profits. Since February, cement manufacturers have increased prices by 20-70 rupees per 50-kg bag in different parts of the country. The price hikes came in the wake of a revival in cement demand, which was hit by the government's decision to demonetise 500 and 1,000 rupee currency notes in November to curb black money. The prices have improved in last couple of months and may go up further, as the demand is expected to increase. In the Union Budget for 2017-18 (Apr-Mar), the government had allocated a record 3.96 trln rupees to infrastructure. This, along with the push for affordable housing, is seen positive for the industry and is likely drive demand for cement. Investors will also track the financial results of cement companies for Jan-Mar. ACC Ltd was the first major cement company to report its earnings for the quarter ended March. Today, the company reported a consolidated net profit of 2.1 bln rupees for Jan-Mar, down 8.9% on year. Other cement companies will report their earnings in the coming days. High prices of petroleum coke and high freight costs could hurt realisations in Jan-Mar quarter.
Source : Cogencis Information Services Ltd.