Cement Stocks
Outlook for the week – 22 to 26.12.2014
( www.rupeedesk.in )
Stocks of most cement companies
are seen extending losses next week due to fall in product
prices. After reducing prices in
October, earlier this month, companies such as Ultratech Cement,
ACC Ltd and Ambuja Ltd had again
cut rates by 5-10 rupees per 50 kg bag in key markets.
The demand-supply for cement is
not good. The semi-urban and rural areas are the ones that are
driving demand. It will take some
more time for the sales to pick up. It is difficult to put timeline
but it will take around six to
nine months for sales to grow.
UltraTech Cement, the country's
largest cement maker with over 62 mtpa capacity, cut prices by
10-20 rupees per bag in Delhi
last week while ACC has cut prices by 10-15 rupees per bag.
Ambuja Cements has cut prices by
10-20 rupees per bag. Also, stocks of UltraTech would be in
focus on reports the company is
in talks to buy Jaiprakash Associates Ltd to buy the latter's cement plants in south and central
India.