Cement firms'' scrips shine
By Nisha Das | 15 Aug 2003
Mumbai: The scrips of domestic cement companies have hardened in the past two weeks with most cement scrips touching a 52-week-high.
Above normal monsoon, increasing domestic demand due to a renewed thrust on infrastructure development, expectations of a price hike and a strong financial performance of cement companies are the major reasons for the recovery in the sector, say analysts tracking the sector.
"All the old economy counters have spearheaded the three-month rally. But the cement sector is the only under-performed sector during the past few months. However, there have been signs in the past two weeks that the sector is finally looking up after languishing at the bottom of the pile for a long time. A potential consolidation following the Grasim-L&T deal has also helped the sentiment," says an analyst with Darashaw Borking and Investments.
The scrip of ACC has climbed by 20 per cent to close at a 52-week high after posting 122-per cent growth in its first quarter bottomline. Birla Corp has surged by over 30 per cent, buoyed by a nearly seven-fold rise in its quarter one results. Moreover, the company has increased its capacity.
Grasim
has been another big gainer after its result announcement.
The company's net profit increased by 23 per cent to Rs
130 crore, beating market expectations. As a result, the
scrip has shot up by 18 per cent to Rs 565.
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