Ultratech, Dalmia, Ramco Cement Stocks Go Up To 5%, Here Is Why
Recently, a big brokerage firm in Japan named Nomura has given better ratings to some Indian cement companies like UltraTech Cement, Dalmia Bharat, and Ramco Cements. They now recommend buying these stocks. They think these companies will do really well in the future, especially in India.
Nomura has given a new high target price for these stocks. For example, they say UltraTech Cement could reach Rs 11,500 per share. For Dalmia Bharat, they suggest it could go up to Rs 2,900, and for Ramco Cement, up to Rs 1,250. They also increased the target price for another company called Shree Cement.
After this news, the stock prices for these companies went up a lot. UltraTech Cement’s price went up by 3.5% and reached its highest price in a year. Dalmia Bharat and Ramco Cements also saw their prices go up by 3% and 5%, respectively. Shree Cement’s price increased a little too.
Usually, in the month of September, cement companies don’t sell as much because construction work slows down. But in 2 years, they were able to increase the price of cement bags after seeing good demand in August.
This demand was higher because of lots of infrastructure development across India. Plus, there was less rain than usual. Prices went up by Rs 10-35 per bag, especially in the eastern part of India.
Even though these companies are making more cement, the demand for cement is expected to be even higher. This is because there’s a lot of work going on in building things like roads and houses. Some experts think that the competition in prices will stay because many companies are making more cement.
In the last few months, many cement companies did better than expected. UltraTech Cement’s performance was as expected, but some others like ACC, Dalmia Bharat didn’t do as well as hoped.
Nomura thinks that the demand for cement will be more than the supply. They are keeping an eye on the prices and also the cost of things like fuel that are needed to make cement.
They believe that in the next few years, the amount of cement sold will grow more than it did in the last ten years. That is the main reason why these cement companies’ stocks have rallied today by nearly 5%.