UltraTech, Ambuja, ACC & others: Slight improvement in cement prices positive, but more awaited

Stock Market Today: UltraTech Cement, Ambuja Cements, Dalmia Bharat, and ACC among other cement stocks may benefit from rising cement prices.

The cement manufacturers have seen decent demand but improvement in cement prices is being eyed since the October-December 2024 quarter as that is expected to drive up earnings growth. With the progressing January-March quarter being historically favourable for cement price improvement, anticipation is that the prices may improve now.

Analysts said that while attempts were made to hike prices across the markets, conversations with dealers, sales executives, and C&F agents reveal the companies struggled to sustain these in most pockets due to increased supply and competitive pricing trends.

Some selective price improvements visible

The cement channel checks by Elara Securities India Pvt Ltd suggest that the average retail price of cement in India increased by a small ₹2 per 50 kg bag month over month to ₹370 after a favourable trend in cement prices during December and January.

The largest price increase, of ₹5 per bag, was recorded in Central India as per Elara, which was followed by ₹4 per bag in West India and ₹3 per bag in North India. East and South Indian prices remained mostly steady month over month.

Regional Cement price trend

Cement prices in a few pockets of Central and North India improved for the third consecutive month in February, according to analysts.

South India, which sees major oversupply situation, has failed to achieve any major gain in February. However, on the positive side, prices in South India remain stable and continue to hover around January levels, as per analysts.

The cement prices in West India also improved but were led by Gujarat as per Elara Securities while prices in Maharashtra have remained a mixed bag.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.