Good result of ACC excites cement stocks

The positive results of bellwether cement maker ACC spiked up the sentiments of the entire cement industry. Major cement stocks gained significantly on Tuesday.

For the quarter ending June 2018, profits increased marginally by 1.1 per cent, at Rs 328 crore from Rs 326 crore, in the same period last year. The company's revenue dipped by 1.3 per cent to Rs 3,768 crore from Rs 3,818 crore in the same quarter last year, even though volume grew by 7 per cent. EBITDA was down by 1.9 per cent at Rs. 624.7 crore as against Rs. 636.4 crore in the same quarter last year.

The company's management provided a positive outlook for the overall cement industry, which actually spiked up the cement stocks. Demand for cement is upbeat due to government emphasis on rural development, housing for all and infrastructural spends.

Major cement stocks gained significantly on Tuesday. At around 11:00 am, the stock of ACC Limited was trading at Rs. 1,472.00 per share, up by 12.77 per cent, Orient Cement was at Rs. 126.50 per share, up 11.40 per cent, India Cements was at Rs. 116.60, up 9.02 per cent, Ultratech was at Rs. 4,220.00, up 5.29 per cent, Sagar Cement Rs. 777.00, up 8.66 per cent, Ambuja Cements Rs. 213.30, up 7.75 per cent on BSE.