Cement Stocks Gain Up To 20 % On Demand Boost

Huge volumes in the cement pack led them to scale new highs in respect of some of the counters namely JK Cement, Ramco and Dalmia Bharat. While others including the likes of Birla Corporation, Ambuja Cements and Prism Johnson hit their respective 52-week highs in Friday's session (February 12, 2021).

In the Union Budget 2021 update, Motilal Oswal said though demand for cement will remain muted in Fy21, it shall grow by 11 percent y-o-y in FY22 and the brokerage prefers scrips that provide valuation comfort, go low on cost curve and show potential to gain market share. The demand shall see surge for the building material because of government's spending push in infrastructure and affordable housing.

Scrip wise, JK Cement surged the most, gaining 20% to hit a new high of Rs. 2902.8 apiece on the NSE. On a YoY basis, the cement company posted 75 percent jump in consolidated net profit during the December ended quarter.

Also, there has been approved establishment of greenfield grey cement plant of four million tonnes per annum by its wholly-owned subsidiary Jaykaycem (Central) Ltd at Panna, Madhya Pradesh.

Dalmia Bharat surged 7 percent and hit its fresh high of Rs. 1500 on the NSE. Since reporting its results wherein good volume growth of 14 percent was reported in the just ended quarter of FY21.

Ramco Cements is another stock that hit a fresh high of Rs. 965.3 per share in today's deal.

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