Cement Stocks Outlook For The Week - 23 to 27.10.2017
Cement Stocks Outlook For The Week - 23 to 27.10.2017
( www.rupeedesk.in )
The stocks of cement companies are seen gaining next week, as the earnings of ACC Ltd and UltraTech Cement Ltd for the September quarter exceeded estimates. ACC, which detailed its earnings for Jul-Sep on Tuesday, more than doubled its net profit to 1.8 bln rupees, against the
estimate of 1.7 bln rupees. UltraTech Cement reported net sales of 69.4 bln rupees, beating the estimate of 64.4 bln rupees. Investors will also look for cues from the earnings of Ambuja Cements
Ltd for Jul-Sep, to be announced on Tuesday. Demand for cement has been subdued since June because of the monsoon, disruption caused due to implementation of the goods and services tax, and the Real Estate Regulation Act. However, we expect demand to improve in the coming months, as the effect of disruptions caused due to GST is almost over. Higher spending by the government on railways, roads, and irrigation, among others is also seen boosting demand for cement. Maximum demand comes from housing sector. So, it is important for it to revive. The government's focus on urban housing will help in it. Rural demand is also likely to go up because of good monsoon in most parts of the country.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
The stocks of cement companies are seen gaining next week, as the earnings of ACC Ltd and UltraTech Cement Ltd for the September quarter exceeded estimates. ACC, which detailed its earnings for Jul-Sep on Tuesday, more than doubled its net profit to 1.8 bln rupees, against the
estimate of 1.7 bln rupees. UltraTech Cement reported net sales of 69.4 bln rupees, beating the estimate of 64.4 bln rupees. Investors will also look for cues from the earnings of Ambuja Cements
Ltd for Jul-Sep, to be announced on Tuesday. Demand for cement has been subdued since June because of the monsoon, disruption caused due to implementation of the goods and services tax, and the Real Estate Regulation Act. However, we expect demand to improve in the coming months, as the effect of disruptions caused due to GST is almost over. Higher spending by the government on railways, roads, and irrigation, among others is also seen boosting demand for cement. Maximum demand comes from housing sector. So, it is important for it to revive. The government's focus on urban housing will help in it. Rural demand is also likely to go up because of good monsoon in most parts of the country.
UltraTech Cement - Up
Shree Cement - Up
Ambujacem - Up
Ambujacem - Up
IndiaCem - Up
ACC - Up
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Source : Cogencis Information Services Ltd.
