Cement makers to hike prices
Cement stocks were buzzing during Tuesday's trade on the back of news report of cement price hike.
Cement companies have witnessed steady increase in input costs which has been reducing their profitability. The price of pet coke, coal have increase significantly, while increase of freight cost due in rise in diesel prices have also cut the cement makers profit margins.
The core sector data released by the government on Monday reported 22.9 per cent rise in cement output indicating revival of infrastructure projects. This seems to have encouraged the cement companies to raise prices to offset the increase in input costs. According to news reports, cement prices will be hiked across the country by Rs 30 to 60 per bag.
Earlier, despite the government's impetus on infrastructure development, cement companies experienced capacity mismatch due factors like RERA and sand shortage which had stalled construction work at many housing projects. Even rural demand was subdued, adversely impacting demand for cement.
Among cement stocks, Dalmia Bharat closed at Rs. 2,885.00 per share, up 2.53 per cent, Ramco Cements closed at Rs. 757.80 per share, up 2.38 per cent, ACC Limited closed at Rs. 1,549.90 per share, up 0.84 per cent, Sagar Cement closed at 950.00, up 0.87 per cent and Shiva Cement closed at Rs. 27.35 up 4.99 per cent, while Ultratech Cement closed at 3,935.90 per share, 1.19 per cent on Tuesday.