India's KCP drops on competition fears after Ambuja Cements deal

India Cements

14/06/2024 06:47

** KCP  KCP.NS  drops 0.8%, only Indian cement stock in the
red
    ** Bigger rival Ambuja Cements  ABUJ.NS  buys Penna Cement
in a $1.25 bln deal, bolstering south India presence
    ** ~60% of Penna's capacity is in Andhra Pradesh, while
KCP's two cement plants are also in that state
    ** Ambuja and fellow Adani-group cement stock ACC  ACC.NS 
are both up ~2% on the day
    ** Other cement firms with Andhra Pradesh presence also
gain: India Cement  ICMN.NS  1.8%, Ramco Cements  TRCE.NS  0.5%,
Sagar Cement  SGRC.NS  4%
    ** KCP has surged ~27% since India's elections, in which
Telugu Desam Party (TDP) chief Chandrababu Naidu returned to
power in A.P.
    ** Analysts say Naidu could revive his ambitious project to
develop Amravati, which he has suggested as state capital
    ** Sagar up 20% since election results, Ramco ~13%, India
Cements ~3%; Ambuja has gained ~1% and ACC is flat

 (Reporting by Savio Dsouza)
 ((savio.dsouza@thomsonreuters.com;))