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What next for cement stocks?

Dec 7, 2010

The near to medium term future of the cement industry may look bleak but the long term prospects are quite attractive

Cement: What does the future hold?

Apr 14, 2010

Equitymaster analyses how has been the year gone by- FY10, for the cement manufacturers and the future prospects.

Cement: Will the price rise be benign?

Mar 2, 2010

Equitymaster analyses importance of cost control measures by highlighting performance of Holcim group companies (ACC and Ambuja Cements) as case in point.

Cement prices - along expected lines!

Dec 15, 2009

Equitymaster analyses the impact of upcoming capacities and economic slowdown on cement volumes and prices.

Cement sector: Under the government's lens

Apr 8, 2009

The cement sector is back in headlines as cement manufacturers are raising prices per bag of cement when inflation levels are all time low. Further, it being the basic construction material the cost of housing and development gets impacted. The real estate sector has lost its sheen and rising cement prices are putting pressure on its margins, especially in case of affordable housing development.

Cement: Taxes purge competitiveness

Nov 21, 2008

Cement is a basic construction material. It is a key raw material used in the construction of houses, bridges, dams, roads (concrete), etc. India is the second largest producer of cement after China.

Cement sector: A review

Mar 24, 2008

The cement story was in the limelight over the past few fiscals owing to the fact that the demand grew at a faster pace compared to supply and therefore, cement prices remained firm.

Cement: Industry overview

Oct 1, 2007

The Indian cement industry is second largest in the world after China and has grown at a CAGR of 8% in the last decade. The sector has evolved significantly in the last two decades, going through all the phases of a typical cyclical industry.

Cement: Benign mismatch!

Nov 14, 2006

The Indian cement industry is second largest in the world after China and has grown at a CAGR of 8% in the last decade. The Indian cement sector has evolved significantly in the last two decades, going through all the phases of a typical cyclical industry. After having gone through a period of over-supply and the phase of massive capacity additions (latter half of the previous decade), the industry is currently in a consolidation phase, with capacity additions coming up to cater to the increasi

Cement: Better import than acquire!

Oct 9, 2006

Consolidation is the name of the game in the cement industry. The booming demand for cement, both in India and abroad, has attracted global majors to India. Demand has been driven by a booming housing sector and increased activity in infrastructure development such as state and national highways. Multinational cement companies have been aggressively picking up stakes in large Indian cement companies. Within a short span, 4 top cement companies in the world have entered India through mergers, acq

Cement: All that goes up must...

Oct 6, 2006

Every fund manager we meet these days are bullish on the cement sector. When asked why, we get a reply that prices are expected to be strong over the next three to six to eight months! While we do concur with such views to an extent, we do not believe that buying cement stocks (or for that matter, any stock) with a short-term view is warranted. In our view, things are not as rosy as it seems for the sector, if one takes a medium-term view.

Cement: What goes into it?

Oct 4, 2006

Cement, being a bulk and low value commodity, is a freight intensive industry and transporting cement over long distances can prove to be uneconomical. Proximity to limestone deposits contributes considerably to pushing down the costs of transportation of heavy limestone. In this scenario, the location of the cement plant becomes crucial. The plant also has to address the issue of power availability in the region. This has resulted in cement being largely a regional play with the industry divide

Cement: How has it moved?

Sep 29, 2006

Cement is one of the key infrastructure industries. The Indian cement sector has evolved significantly in the last two decades, going through all the phases of a typical cyclical industry. After having gone through a period of over-supply and the phase of massive capacity additions, the industry is currently in a consolidation phase, with capacity additions coming up to cater to increasing demand for cement.

ACC: It's a new beginning

Jan 28, 2005

ACC, the country's second largest cement manufacturer, announced its 3QFY05 results last week. While the topline witnessed a strong growth of over 25% YoY during 3QFY05, the bottomline improved by an impressive 138% YoY. This could be largely attributed to the company’s continued focus on cost reduction, bringing about operational efficiencies. To put things in perspective, operating margins improved significantly by 270 basis points during the said period.

Grasim: All goes up!

Oct 28, 2004

Grasim, one of the key cement players in the country, has reported good numbers for 2QFY05. Backed by strong improvement in margins of the cement division, the overall margins of the company have shown an improvement. With crude prices increasing sharply, the prices of PSF (polyester staple fibre) have increased. VSF (viscose staple fibre), being a substitute, has therefore, witnessed increased demand. Excluding the extra-ordinary adjustments, net profit for 2QFY05 has increased by 23% YoY.

ACC: Coming into its own

Oct 27, 2004

ACC, among the largest cement manufacturers in the country, has posted impressive numbers for the second quarter ended September 2004. While revenue growth has been aided by higher cement prices, there has been a sharp expansion in margins. Though the company's initiative to prune costs has been paying off, the expansion in margins has to be viewed with respect to lower purchases of cement from group companies. Since 2QFY04 was also a weak period, the expansion in margins is magnified. Neverthel

The Ambuja strength…

Oct 20, 2004

Gujarat Ambuja, one of the most cost-efficient manufacturers of cement, declared its 1QFY05 results today. Though growth numbers, as is evident from the table below, are higher at the first look, the numbers are not strictly comparable (due to the merger of a subsidiary with the company). Domestic sales of cement was higher by 9% during the quarter under review.

Cement: What’s the story?

Oct 11, 2004

The ‘cement story’ is once again in the limelight. The fact that demand is likely to outpace supply and therefore, cement prices are likely to firm up is being heard on the streets time and again. We therefore, take a closer look at the fundamentals.

ACC-Tata Power: What’s the impact?

Oct 8, 2004

Tata Power has sold its Wadi power generation units to ACC, one of the country’s largest cement manufacturers, for a consideration of Rs 2.4 bn. In this article, we analyse the impact of the same on both the companies.

ACC: Will it outperform?

Sep 20, 2004

As compared to the market leader, Gujarat Ambuja, ACC has under performed in the stock market over the last one year. We take a review of the company's performance in the recent quarter and whether the much expected 'faster margin expansion' is likely to happen in FY05 and beyond.


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