India's cement stocks rise on expectations of margin expansion in Q4

Ramco Cements

12/04/2023 10:12

** Shares of cement companies including ACC  ACC.NS , Ambuja
Cements  ABUJ.NS , Grasim  GRAS.NS , Nuvoco Vistas  NUVO.NS ,
The Ramco Cements  TRCE.NS  and J K Cement  JKCE.NS  rise
between 0.5% and 3% after analysts forecast recovery in earnings
growth in Q4
    ** Systematix Institutional Equities says it expects margin
expansion to continue in March quarter, driven by higher
volumes, lower energy costs and operating leverage benefits
    ** Adds that Ultratech Cement  ULTC.NS , Shree Cement
 SHCM.NS , JK Cement and The Ramco Cements to report
double-digit volume growth in Q4
    ** Core profit per tonne to improve further due to decline
in petcoke and coal prices and stable diesel prices - Systematix
    ** Global brokerage Citi also expects expansion in core
profit per tonne in Q4 despite muted cement prices
    ** Falling raw material costs could lead to profitability
for cement companies in March quarter - Citi
    ** The brokerage upgrades Dalmia Bharat  DALB.NS  to "buy"
from "neutral" on cheap valuations; reiterates buy on ACC,
Ambuja and Ultratech




 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))