UltraTech Cement Stock Rally Sparks Industry Recovery
UltraTech Cement led a surge in cement stocks on Wednesday, with its share price climbing by 2.7% to Rs 12,057.50 on the Bombay Stock Exchange (BSE). This rise came after cement dealers implemented price hikes following several months of stagnant margins, signaling a recovery in demand within the sector. The UltraTech Cement stock rally stood out as a major highlight in the day’s trading, emphasizing the company’s dominant position in the market.
The price hikes, ranging from Rs 10-30 per bag, reflect a 3.5% increase on a quarterly basis, according to CLSA, a Hong Kong-based brokerage. Despite this, prices remain about 5% lower compared to the same period last year. The price adjustments have had a ripple effect, sparking gains across the industry, with Adani Group’s ACC and Ambuja Cements seeing increases of 2% and 1.8%, respectively. Dalmia Bharat also experienced a rise of 3.4%.
Cement dealers pointed to improved labor availability post-festive season and a surge in orders from real estate and infrastructure projects as key factors driving the price increases. These developments have fueled optimism for a continued recovery in the sector.
Following a slow start in October, cement volumes started to recover in late November, with CLSA predicting a 4% price increase in the second half of FY25 driven by stronger demand and cost efficiencies. UltraTech Cement was highlighted by CLSA as its top pick for investors.
With the recent price hikes boosting investor sentiment, the outlook for the cement industry appears promising. As demand is expected to strengthen even further into FY26, the UltraTech Cement stock rally reflects broader optimism for the industry’s continued growth.
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