Cement stocks mixed as reports say companies may go for price hike in October

Cement stocks traded mixed in the morning trading session on Wednesday, September 27, after reports suggested that the price of cement would increase from October 1. 

At around 10:05 a.m. on BSE, individually, Nuvoco Vistas Corporation shares were up over 3 per cent, Dalmia Bharat shares were up 0.18 per cent, Shree Cement was up 0.44 per cent, JK Lakshmi Cement was up half a per cent, ACC was flat, and UltraTech Cement was also trading flat, up 0.06 per cent.  

On the other hand, The Ramco Cements was down 0.41 per cent.  

According to Zee Business research, cement prices will be hiked in South and North India from October 1. The prices will be hiked by Rs 30 to Rs 40 per bag in the southern region and by Rs 10 to Rs 20 in the northern region. 

Earlier, at the beginning of September, the prices were increased from Rs 10 to Rs 35 per bag. This is the third time in recent past that cement prices have increased. 

Anil Singhvi's recommendation 

Zee Business Managing Editor Anil Singhvi has recommended buying shares of Dalmia Bharat for a target price of Rs 2,410 apiece and Rs 2,455 apiece. 

Singhvi believes that Dalmia Bharat will get the benefit of a cement price hike in the north and south regions. 

Brokerages' view  

Axis Securities has given a 'buy' call on UltraTech Cement for a target price of Rs 9,520 apiece. The brokerage said that the company’s organic capacity expansion plan is progressing well. Total grinding capacity will increase to 165 mtpa in FY25E–FY26E from the current 135.1 mtpa, contributing to volume growth. 

Nomura has recommended buying shares of Shree Cement for a target price of Rs 28,700. 

Cement stocks’ performance 

In a month, shares of Dalmia Bharat have gained over 16 per cent, Nuvoco Vistas' stock has surged over 12 per cent, Shree Cement has given a return of 8.5 per cent, The Ramco Cements has risen 7 per cent, UltraTech Cement has climbed 1.5 per cent, and ACC shares have given over 1 per cent returns against the Nifty 50's rise of over 1 per cent.  

In the same period, JK Lakshmi has lost nearly 1 per cent.  

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