The Hindu Business Line : Firm price, higher dispatches push cement stocks up

According to industry sources, both volumes and prices have firmed up during the past month. In the western region, the price rise was between Rs 5 to Rs 7 per bag, while in the southern region, it has moved by Rs 7 to Rs 10 per bag. The average price per bag in the eastern and northern region has also appreciated by more than Rs 6.

In terms of dispatches, southern region despite having encountered heavy rain last month, volume has not suffered much, industry sources indicate. In fact, reconstruction work is causing greater demand, they felt.

According to Mr A.K. Jain, Executive Director Marketing of ACC, though exact month-on-month growth cannot be mentioned before industry-wide compilation of figure is over, it can be said that generally November too has seen an overall growth in dispatches.

"The current upswing is related to greater national focus on infrastructure development and structural changes in the economy. As no further capacity expansion is sight, the pricing power is likely to stay with the manufacturers. The third and fourth quarters normally being good for the cement industry, things should improve further in the next months to the end of the fiscal," Mr Mukesh Modi of Anagram Stockbroking said.

In October, ACC had shown a growth in dispatches of around 18 per cent against that in September, while dispatch growth for Gujarat Ambuja was roughly 22 per cent and Grasim-UltraTech 20 per cent.

Smaller cement companies in the south such as India Cements, Rain Commodities and Madras Cement, have either been turning around or growing in strength in the last few months.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Cement | Stock Markets

Stories in this Section
Siemens bets on India for Asian growth

It pays to invest in resume

Cyclone `Baaz' may break out of jam to make landfall

Firm price, higher dispatches push cement stocks up

Govt clears Nokia's SEZ proposal

Wipro opens hub for remote services in Bangalore

Stocks recover smartly on renewed FII support

Insurance companies may be allowed pension biz under existing entity

Zee to telecast Sri Lanka test matches

`India very high on Microsoft priorities' — Bill Gates coming next week