CEMENT SECTOR
Fund Manager Talk | Worst may be over for cement, metals and durables: V Srivatsa, UTI AMC
V Srivatsa from UTI AMC sees opportunities in cement, metals, and durables sectors. He predicts a recovery in oil and gas companies in the second half of FY25. The SIP flows are expected to continue growing but may not reach Rs 1 lakh crore in the next 4-5 years. He remains cautious on current market valuations.
Post GDP shocker, which sectors should you bet on? Here¡¯s what Nitin Raheja has to say
Capex spending is expected to rise in the next two quarters, which will benefit industrial, infrastructure, and cement companies. High-end discretionary consumption has done well and will continue to do so. India's manufacturing sector shows promise. Some sectors may be impacted by global trade issues, but overall manufacturing and capex focus is positive for India's economy.
Jefferies¡¯ bullish call drives gains in cement stocks
Cement stocks surged over 5% on Monday due to positive sentiments from a Jefferies report predicting continued demand recovery led by government infrastructure spending and stable prices. Key players like JK Cement, UltraTech Cement, and others saw significant gains following the positive outlook.
Cement shares rally over 5% as ICICI Securities upgrades UltraTech, 4 other stocks
ICICI Securities has revised its outlook on the cement sector from neutral to positive, citing improved fundamentals. The upgrade is attributed to reduced competitive pressures due to recent M&A activity, favorable pricing expectations, and strong capacity expansions.
Market Wrap: Sensex closes 440 points higher, Nifty tops 24,250 ignoring GDP wrinkles; cement, auto stocks lead rally
Sensex ended 440 points higher while Nifty ended above 24,200 points on Tuesday, sidestepping disappointing Q2 GDP data, as buying in heavyweight cement manufacturers and automakers lifted the indices.
Time to get back to basics? 5 cement stocks with an upside potential of up to 28%
Cement is one of the sectors where demand has a strong correlation with government spending. That is the reason why the sector has seen a strong revival in actual business in recent years. However, in the last few months, due to elections and the model code of conduct being in force now and then, there has been pressure on sectors tied to government spending. In fact, the dip in GDP numbers may well be partly attributed to lower government spending. Now with elections over in all economically-significant states, there are chances that infrastructure spending will receive a big push. The coming quarter may thus see the focus shift back to sectors where things were under pressure for some time.
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Next leg of the rally from cement pack; Ultratech top pick: Aditya Arora
Aditya Arora from Adlytick expects the market to stay range-bound, with key levels for Nifty at 24,400 on the upside and 23,800 on the downside. Smallcaps and midcaps are performing well, especially in the cement sector. Arora suggests UltraTech Cement as a strong pick. Pharma and FMCG sectors are also showing encouraging signs.
Monday blues! Sensex slides over 450 pts, Nifty below 24,100 as D-St reacts to GDP shocker
Indian benchmark equity indices opened in the red on Monday, dragged by IT and banking stocks. The BSE Sensex was trading lower by 401 points, and the Nifty50 was down by 98 points amid concerns about domestic growth. Key contributors to the decline included HDFC Bank and Infosys.
Are they getting ready for re-rating as a group? 6 companies from the Aditya Birla stable
In the last few years, the overall re-rating in the Indian markets has largely been sector-based. But there has been a re-rating based on ownership as well. The Tata Group is a prime example. A number of Mahindra Group companies have also been re-rated. In the context of the Tata Group, let¡¯s see what this means for shareholders. Till a few years back, despite being listed for decades, the overall returns on Tata Group stocks ¨C barring one or two companies ¨C were not very high. But, under new leadership, the house was ¡°put in order¡±. The result: In the last five years, most group stocks have made up for their past underperformance ¨C and market capitalization has gone up multiple times.Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores. SR+ Reports is a complimentary offering to ETPrime members.
India's core sectors grow 2% in September
In September 2024, India's eight core sectors' output growth increased by 2%, with significant positive growth in Cement, Refinery Products, Coal, Fertilizers, and Steel. However, the crude oil sector experienced a 3.9% decline. The data, presented by the Ministry of Commerce and Industry, highlights variations in the performance of these essential industries.
Private Banks, IT poised for revival; cement sector to emerge as a dark horse: Rupen Rajguru
So, in the near to medium term, we expect market to consolidate and probably we are at 24,000-24,100 level, which is kind of the fair value, closer to the fair valuation zone and market will probably take a breather for a quarter or two till the earnings catch up happens, before it sets its new leg upturn.
Cement industry to add 70-75 million MT capacity in two years amid slowdown in construction
India's cement production will grow significantly. 70-75 million metric tonnes of capacity will be added in the coming two years. Eastern and southern regions will lead this expansion. Cement production will rise, but profits may fall. Construction activity has slowed down after the elections. Rural demand will increase due to good monsoons.
Mood at core sector companies positive, discretionary outlook cautious
Most management teams highlighted a moderation in domestic demand, particularly in commercial vehicles and passenger vehicles, with volume guidance revised downward for high-growth two-wheelers, according to the brokerage. Auto ancillary firms with overseas exposure also saw weak demand. While raw material costs remain stable, benefits from commodity softening are being offset by rising operational costs.
Sensex, Nifty flat in early trade as mixed global cues weigh on D-St
Indian benchmark equity indices opened flat on Wednesday, with gains in some stocks offset by losses in others. The Sensex traded slightly lower, while the Nifty50 also dipped. Adani Group stocks saw gains of up to 4%, countering losses in companies like Reliance Industries and Bharti Airtel.
Time to be bullish, but with more filters: 5 small-cap stocks from different sectors with an upside potential of up to 40%
In the short term, there may or may not be more volatility. It is not only difficult to predict, it is almost impossible to do so. For one simple reason. No one knows exactly how things will pan out between China and the new US administration. And depending on how they do, short-term headwinds and uncertainty are quite likely. But will this impact an Indian small-cap company that makes power equipment? Or one that has just executed its expansion plan? The answer is no. While their stock price may be impacted, their earnings will not. And in the long term, what matters to the street are earnings. So if one is reasonably sure of two things ¨C that earnings are likely to grow, and the company meets some quantitative parameters ¨C then this volatility is an opportunity from a long-term perspective.
Prabhudas Lilladher cuts Nifty target to 27,381; reduces weight on RIL, three other stocks in its model portfolio
The revision reflects macroeconomic challenges such as persistent inflation, weak urban demand, and revised EPS projections for FY25¨C27, according to the brokerage.
India Inc: Key takeaways from Q2 earnings season for investors
The second quarter of FY25 saw mixed financial results for Nifty 50 companies. While Pharma and Realty thrived, Energy and Infrastructure struggled. Factors like uneven rainfall and inflation impacted sectors like FMCG and Auto. Despite challenges, companies adapted through operational efficiency and strategic initiatives, with optimism for a stronger second half of the fiscal year.
All dips can be utilised to accumulate cement leaders: Rakesh Arora
Chinese economy is reasonably supported, they are not going big bang, and China is keeping firepower safe for if untoward, all these tariff barriers come in once President Trump takes in. So, we have to wait and see. I am not really expecting any big bang thing here.
Citi India Strategy: Nifty valuation reasonable post 10% correction; upgrades cement to overweight
Citi's latest India strategy report suggests that the recent market correction presents opportunities for long-term investors. While earnings show sectoral variations, Citi anticipates growth driven by public spending and rural demand. Despite strong domestic investments, continued FII selling remains a concern. Citi upgrades cement to "Overweight" and sets a cautiously optimistic Nifty target of 25,000 by September 2025.
Indrajit Agarwal explains why larger cement players will continue to gain market share
India's materials sector, after facing headwinds, is poised for a strong recovery driven by government spending and stabilizing prices. Despite weak demand and input cost volatility impacting second-quarter earnings, analysts are optimistic about a rebound in the second half. While the Chinese economy's trajectory raises concerns for steel, domestic appliances are expected to benefit from rising incomes and premiumization trends.
Weaker Q2 numbers bring a flood of earnings downgrades
Analysts warn that a global slowdown - driven by high interest rates and persistent inflation - could dampen earnings growth, with operating profit margin expansion slowing due to weaker demand.
Core sector growth rebounds to 2% in Sept after Aug setback
India's core sector output grew by 2% in September, up from the 1.6% recorded in August. Five of the eight sectors, including cement and refinery products, saw growth. Cement had the highest year-on-year growth at 7.1%. The overall growth in these sectors during the first half of the financial year was lower than the same period last year.
PMAY, Centre's focus on infrastructure development poised to drive growth for cement sector: Ambuja Cements
The cement industry is anticipated to grow significantly in the second half of FY 2025 due to strong infrastructure demand. The rollout of PMAY Urban Housing 2.0 with ?11 lakh crore allocation and strategic investments in roads and railways are expected to drive this growth, says Ambuja Cement.
ITD Cementation shares tumble nearly 8% as Adani Group looks to acquire 73% stake in co
Shares of ITD Cementation fell 7.7% after Adani Group announced plans to acquire a 73% stake for Rs 5,759 crore. An open offer will follow to buy an additional 26%. This acquisition will enhance Adani's EPC capabilities, marking its 12th acquisition this year.
After cement, Adani flexes muscles in another new sector
The Adani Group's aggressive expansion continues as it enters the copper sector, crucial for India's renewable energy plans. Leveraging its infrastructure strengths, the group aims to become a leader in copper production, competing against industry giants like Hindalco and Hindustan Copper, amid rising domestic demand.
Major deals in India's cement sector since Adani Group's entry in 2022: A timeline
Ambuja Cements will acquire a 47% stake in Orient Cement for $451 million, as India's cement sector sees significant deal-making activity. Major deals include Adani's $10.5 billion Holcim acquisition, Dalmia Bharat's $687 million purchase, and UltraTech's $645 million Kesoram deal, reflecting intense competition for market dominance.
Southern cement sector poised for growth amid industry consolidation: Rakesh Arora
In South India, it was closer to 50%. And with this acquisition of India Cements by UltraTech and now Orient by Ambuja Cement, it is getting to the levels where the other regions are.
Dalmia Bharat¡¯s profit slumps 60% in September quarter on weak pricing
Dalmia Bharat¡¯s profit dropped over 60% in the September quarter due to weak cement prices, despite increased sales. The company¡¯s revenue declined slightly to Rs 3,087 crore, with EBITDA falling nearly 27% to Rs 434 crore. They aim to expand capacity to 75 million tonnes by 2027-28.
Cement firms likely to see profits halve in September quarter
Domestic cement producers may see profits halved in Q3 due to low volume growth and three-year low prices, amid intense competition and adverse weather impacting demand.
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