Movement in stocks of major cement makers is likely to be stock- specific next week as investors look at companies' Apr-Jun earnings to take a view on the scrip. Ambuja Cements, which rose nearly 8% this week after it posted a rock solid performance in Apr-Jun, may rise more next week. Improved realisation, and high sales volumes took Ambuja Cements' net profit for Apr-Jun up 35% year-on-year to 4.69 bln rupees, marginally higher than Street expectations. The company's net sales rose 18% to 25.66 bln rupees. Stocks of ACC may also trade slightly up, reacting to satisfactory earnings for the quarter, but the upside is likely to be limited. The company posted a 26% on-year increase in net profit at 4.14 bln rupees on the back of a 15% rise in net sales at 29.19 bln rupees.
The current market price adequately factors the improving sectoral outlook and ability of the company to capitalise on the same. Jaiprakash Associates stocks, which fell over 10% this week on expectations of poor Apr-Jun earnings, may see some more fall, but the same will be capped. Jaiprakash Associates is seen posting an only 2% rise in Apr-Jun net profit driven by realisations from its cement business. The company will detail its quarterly earnings on Tuesday. Cement volume (ex-Jaypee Cement Corp) is likely to be 4.3 mln tn; while blended realisation is expected to rise 0.4% on year to 3,672 rupees per tonne. Street is also likely to watch Andhra Cements' Apr-Jun earnings Wednesday, Madras Cements' results on Thursday, and India Cements' numbers on Aug 13.
(www.rupeedesk.in)
The current market price adequately factors the improving sectoral outlook and ability of the company to capitalise on the same. Jaiprakash Associates stocks, which fell over 10% this week on expectations of poor Apr-Jun earnings, may see some more fall, but the same will be capped. Jaiprakash Associates is seen posting an only 2% rise in Apr-Jun net profit driven by realisations from its cement business. The company will detail its quarterly earnings on Tuesday. Cement volume (ex-Jaypee Cement Corp) is likely to be 4.3 mln tn; while blended realisation is expected to rise 0.4% on year to 3,672 rupees per tonne. Street is also likely to watch Andhra Cements' Apr-Jun earnings Wednesday, Madras Cements' results on Thursday, and India Cements' numbers on Aug 13.
(www.rupeedesk.in)
