Cement Stocks Outlook: 23-27.07.2012

[rupeedesk]

Cement Stocks Outlook: 23-27.07.2012

                 

Stocks of major cement companies are seen rangebound next week with a positive bias as sentiment is seen good after UltraTech Cement yesterday announced Apr-Jun earnings which were in line with market expectation. Beating Street expectation, India's largest cement maker by capacity, UltraTech Cement Ltd yesterday posted a 14% on-year rise in net profit for Apr-Jun at 7.78 bln rupees on the back of higher sales. Net sales for the reporting quarter were up 16.6% on year at 50.75 bln rupees.

                  Investors are likely to closely eye for Apr-Jun earnings of heavyweights ACC and Ambuja Cement on Thursday before taking any further view on the sector. Improved realisation, higher sales volume, and a low base effect are likely to lead Ambuja Cements to post a 29% on-year rise in net profit to 4.48 bln rupees. Net sales are seen rising 16% on year to 25.28 bln rupees. Country's second largest cement maker by capacity, ACC, is seen posting a 12% on-year rise in its Apr-Jun net profit at 3.78 bln rupees. The company is seen posting a 13% on-year rise in net sales at 27.25 bln rupees.

By RUPEE DESK

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