Stating that the cement momentum will continue in India, Nomura has upgraded Ultratech to buy from neutral with a target price of Rs 11,500. Dalmia Bharat’s target has been raised to Rs 2,900 and Ramco Cement to Rs 1,250.
It has maintained a buy rating on Shree Cement but increased the target price to Rs 33,400 from Rs 27,800 earlier.
Following the upgrades, Ultratech shares jumped 3.5% to hit a 52-week high of Rs 10,379.70 on BSE. Dalmia Bharat stock rose 3% to Rs 2,301.70, while that of The Ramco Cements went up by 5% to Rs 1,037.45.
Shree Cement was also trading about 1% higher.
In the September quarter, the performance of Ambuja Cement, Shree Cement, JK Cements, JK Lakshmi, Orient Cement, and Star Cement were above expectations. UltraTech Cement delivered in-line performance while ACC, Dalmia Bharat, Heidelberg Cement, and Birla Corp delivered underperformance, Axis Securities said.
Cement volume for companies tracked by the brokerage grew by 14%, driven by better demand from both trade and nontrade segments in Q2.”Despite companies adding capacities, we believe that cement demand will outpace the cement supply. Sustainability of higher prices and trend in fuel prices remains key monitorable,” Axis had said earlier.
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