Cement Stocks Outlook for the week – 15 to 19.05.2017
Cement Stocks Outlook for the week – 15 to 19.05.2017
Stocks of cement companies are seen mixed next week, with ACC Ltd and Ambuja Cements Ltd likely to see correction. ACC and Ambuja Cements look overbought after the recent rally and both the stocks may go downwards this week. Stocks of ACC and Ambuja Cements gained this week as the companies announced last Friday that they will form a special committee to explore the possibility of a merger. Next week, Dalmia Bharat Ltd, which reported a 94.2% on-year rise in its consolidated net profit for Jan-Mar on Wednesday, is likely to sustain the gains it made post the earnings. Demand for cement has recovered from the slump after demonetisation. Rating agency ICRA had earlier said that cement prices, which had fallen after the currency curbs, reached pre-demonetisation levels in April. Cement makers have hiked prices in different parts of the country since February as availability of currency notes improved. Analysts, however, attributed the recent price hikes to seasonal demand. While the prices are higher on quarter, they are still less than what they were last year. Prices go up during this time of the year as this is a peak time before the onset of monsoon.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 15 to 19.05.2017
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Stocks of cement companies are seen mixed next week, with ACC Ltd and Ambuja Cements Ltd likely to see correction. ACC and Ambuja Cements look overbought after the recent rally and both the stocks may go downwards this week. Stocks of ACC and Ambuja Cements gained this week as the companies announced last Friday that they will form a special committee to explore the possibility of a merger. Next week, Dalmia Bharat Ltd, which reported a 94.2% on-year rise in its consolidated net profit for Jan-Mar on Wednesday, is likely to sustain the gains it made post the earnings. Demand for cement has recovered from the slump after demonetisation. Rating agency ICRA had earlier said that cement prices, which had fallen after the currency curbs, reached pre-demonetisation levels in April. Cement makers have hiked prices in different parts of the country since February as availability of currency notes improved. Analysts, however, attributed the recent price hikes to seasonal demand. While the prices are higher on quarter, they are still less than what they were last year. Prices go up during this time of the year as this is a peak time before the onset of monsoon.
Source : Cogencis Information Services Ltd.