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The shares of the cement giant, UltraTech Cement were seen trading with mild gains during the early market hours on Thursday as the company braced to report its September quarter earnings. The stock was trading with gains of 0.3% at Rs 8,300 per share as of 11:15 am.
As per the brokerage firm StoxBox, the cement giant is all set to report strong volume growth in the July to September quarter showcasing a healthy demand scenario. Additionally, new capacity is likely to add to the incremental volumes. 'We expect the company to report low teen double-digit revenue growth. Meanwhile, the increase in overall supply due to excessive competition has led to prices being under pressure,' added the StoxBox report.
The StoxBox report also noted that the net realization will remain flat on a sequential basis and the easing costs in key raw materials will aid in margin expansion. 'We will closely monitor the management commentary on the evolving demand scenario, capacity expansion plans, any likely further hikes and the after-effects from the recent rebound in fuel costs,' the report added further.
The UltraTech Cement stock has staged an up move in the last eight out of the 11 trading sessions and posted gains of more than 2% in the said sessions.
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