Market News
2 min read | Updated on December 11, 2024, 11:26 IST
SUMMARY
HeidelbergCement led the gains, surging 4.34%, while UltraTech Cement and Dalmia Bharat advanced over 2%.
Stock list
Cement stocks rallied on Wednesday, December 11, with shares rising up to 4.5% on the BSE
Cement stocks rallied on Wednesday, December 11, with shares rising up to 4.5% during intraday trading on the BSE, driven by price hikes undertaken by dealers after months of flat margins that had squeezed profitability for manufacturers.
HeidelbergCement led the gains, jumping 4.34% to an intraday high of ₹230.65, followed by Udaipur Cement Works, which rose 4.19% to ₹32.30. Star Cement advanced 3.74% to ₹202.20.
UltraTech Cement was trading 2.19% higher at ₹12,006.55 by 11 am.
Among Adani Group stocks, ACC and Ambuja Cements recorded gains of 1.03% and 1%, trading at ₹2,272.60 and ₹579.25, respectively. Dalmia Bharat also saw a 2.93% uptick to ₹1,955.65 per share.
The rally comes as cement dealers hiked prices nationwide by about 3.5% this quarter, according to CLSA. However, prices are still 5% lower than they were a year ago.
Market experts attributed the price hikes to improved demand from the real estate sector, buoyed by better labour availability post-festive season, and an increase in infrastructure-related orders.
CLSA noted that after a weak October, volumes began recovering steadily in the second half of November, setting the stage for stronger demand in the months ahead.
Jefferies had highlighted a positive outlook for Indian cement companies in the second half of the fiscal year.
"Demand growth has moderately improved in October-November, and recovery should continue into Q4 on revival in government capex," Jefferies stated, projecting 8-10% volume growth in H2FY25 compared to a flat performance in H1FY25.
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