look news india
In the last one month, the country's major cement companies have recorded poor performance in the market. The sector hopes that demand will improve after the general elections in the country and the stock prices of cement companies may rise again. Of course, the premium valuation of these companies is expected to remain modest in the near future, as the strategy of the companies is to protect sales volumes by keeping prices soft amid weak demand. As artisans and laborers go to their hometowns to vote during elections, the construction sector slows down, so cement stocks also underperform.
Average cement prices across India fell 5.1 per cent year-on-year in the March quarter due to weak demand from all sectors. The price of 50 kg quantity of cement was Rs 359. As a result, cement companies focused on increasing sales. So, cement sales of major companies increased by 7.22 per cent in the March quarter compared to the same period last year. Notably, the top four cement companies UltraTech Cement, ACC, Ambuja Cement and Shree Cement control more than 55 per cent market share.