Cement & Building Materials (Tiles) - Results Preview - Robust Performance on Improved Volume - Reliance Securities
Posted On: 2021-01-12 03:52:45 (Time Zone: Arizona, USA)
Cement industry is expected to continue its robust performance in 3QFY21 as well, mainly led by rebound in volume notwithstanding cost pressure and sequential decline in average realization. A healthy recovery in demand scenario post monsoon led by pick-up in construction activities across regions augurs well for the cement companies. Higher sales volume and improving utilization are also likely to negate the adverse impact of higher fuel and input prices. Average sales volume of the cement companies under our coverage universe is expected to increase by ~7% YoY and 15% QoQ mainly led by sharp recovery in Eastern, Northern and Central markets. It is heartening to see that improvement in real estate demand contributed to quarterly volume growth, which has offset the adverse impact of softening demand from
Key barometers came off day s low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 62.28 points or 0.13% at 46,828.06. The Nifty 50 index slipped 39.10 points or 0.28% at 13,701.60.
Shares witnessed profit selling after a five-day rising streak during which the Sensex added 2.02% while the Nifty gained 1.95%.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 0.44%. The S&P BSE Small-Cap index lost 0.32%.
Sellers outpaced buyers. On the BSE, 1,072 shares rose and 1,790 shares fell. A total of 146 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined.
Derivatives:
The NSE s India VIX, a gauge of market s expectation of volatility over the near term, shed 0.13% to 19.13. The Nifty December 2020 futures were trading at 13,726.80, at a premium of 25.05 points compared with the spot at 13,701.75.
Post transaction, HDFC mutual fund s shareholding in Sagar Cements has reduced to 4.61% from 6.66% earlier.
Sagar Cements consolidated net profit soared 919.7% to Rs 50.17 crore on 22.8% increase in net sales to Rs 325.88 crore in Q2 September 2020 over Q2 September 2019.
Sagar Cements is engaged in manufacturing clinker and ordinary portland cement (OPC).
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