The Indian cement stocks remained in focus on Friday’s session as most of the stock gained and traded in the green. The markets remain bullish on the sector as the demand for cement seems to be rising. In addition to that, the government’s focus on infrastructure development in rural and urban areas is likely to boost the sector.
Recently, a report surfaced suggesting that cement companies have taken a price hike in the range of Rs 5-15 per bag across the country. The move is set to improve the margins of these companies going further.
On the back of these positive developments, here are 2 cement stocks that have reached a new 52-week high on Friday’s session:
UltraTech Cement Limited
The shares of UltraTech Cement opened at Rs 7,176 levels and gained as much as 3 percent in the early hours to reach a new 52-week high of Rs 7,393.30. In the past six months, the stock has gained approximately 11 percent.
The Aditya Birla Group company recently announced that it has commissioned 1.30 million tonnes per annum brownfield cement capacity at Hirmi in Chhattisgarh and 2.80 million tonnes per annum greenfield grinding capacity at Cuttack in Odisha.
“This forms part of the ongoing capacity expansion. With this commissioning the company’s total cement manufacturing capacity in India now stands at 126.95 million tonnes per annum,” the company said in an exchange filing.
UltraTech Cement is the largest manufacturer of grey cement, ready-mix concrete (RMC), and white cement in India. It has 22 integrated manufacturing units, 27 grinding units, one clinkerisation unit, and 8 bulk packaging terminals.
The company reported total revenue from operations of Rs 15,520.93 Crore in Q3FY23, as against Rs 12,984.93 Crore in Q3FY22. Their net profits in the period stood at Rs 1,059.3 Crore down from Rs 1,709.38 Crore in the same quarter the year ago.
Dalmia Bharat Limited
Dalmia Bharat saw its shares open at Rs 1,939 levels and rallied by more than 2.5 percent in the early hours to reach a new 52-week high of Rs 1,989.80. In the past six months, the stock has gained approximately 22 percent.
The scrip gained after the company got a nod from the Competition Commission of India (CCI) for the acquisition of certain assets of Jaiprakash Associates Ltd and its associates.
According to an official release, the proposed combination related to the acquisition of clinker, cement, and power plants belonging to Jaiprakash Associates Ltd and its
associate by Dalmia Cement (Bharat) Ltd, a wholly-owned subsidiary of Dalmia Bharat.
Dalmia Bharat Ltd (DBL) is India’s fourth-largest cement company and the largest Producer of Specialty Cement in India. The company has a Current Capacity of 37 MTPA.
In Q3FY23, the company reported total revenue from operations of Rs 3,355 crore, up from Rs 2,731 crore in Q3FY22. Their net profits for the quarter were Rs 212 crore, a multifold jump from Rs 73 crore in the same quarter last year.
Written by Anoushka Roy
