Cement stocks riding high on hopes of higher demand, capex push

Price wars led by increasing capacities and aggressive competition may hit prospects

A Kolkata-registered company, SMPL owns limestone reserves, a key cement input, in Madhya Pradesh and is planning to come up with a cement unit there

The March, 2023 weakness could be partly attributed to unseasonal rains and labour unavailability, as well as delayed payments for government projects

Devangshu Datta

Listen to This Article

The cement industry continues to present several puzzles to investors. There’s consolidation going on, with current capacity in surplus to demand and the nation-wide entry of the Adani Group through its acquisitions of two key players.

At the same time, every major player is in capex mode and expanding capacity. The optimists point to the demand that will be created by the infrastructure thrust at both Centre and state level. The pessimists say demand is still weak in the medium-term and there are apprehensions that a price war could impact every company’s margins.

The fourth quarter of the 2022-23 financial year (Q4FY23) saw most companies instituting price hikes in January and February. However, those hikes were rolled back in March

Also Read

Grasim, UltraTech: Cement stocks eye up to 10% upside on GST review

Jaiprakash to sell cement, power units to Dalmia Group for Rs 5,666 cr

ACC, UltraTech Cement, Ramco: Here's how cement stocks look on the charts

Dalmia, Sagar Cements in race to buy debt-ridden Andhra Cements

Cement shares in focus; UltraTech, Dalmia Bharat hit 52-week highs

Despite market volatility, 25 million demat accounts added in FY23

Ramakrishna Forgings stock zooms 107% on BSE in less than 10 months

Mutual funds' equity bets touch record Rs 1.73 trillion in FY23

Investors' wealth jumps over Rs 10.43 trn in last 5 days of market rally

Unauthorised investment advisory services: Sebi bans 4 for six months

First Published: Apr 07 2023 | 8:56 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com