Shares of several cement manufacturers -- Shree Cement, UltraTech, and Dalmia Bharat -- grappling with rising input costs recovered marginally after hitting their 52-week lows on Friday, as the market suffered deep losses tracking global peers on the Russia-Ukraine war.
Shree Cement’s stock declined 3 percent to a 52-week low of Rs 22,116.65 on the National Stock Exchange, having erased 4.81 percent of investors’ wealth in the past five days. The stock recovered partially from the day’s low to finish at Rs 22,550, down 1.21 percent from its previous close.
Shares of UltraTech Cement also slipped 2 percent from their previous close to hit a 52-week low of Rs 5,850.80. But the stock recovered and leaped back into the green territory. It climbed 3.2 percent from the day’s low to settle at Rs 6,041.90 on NSE. However, in the 5-day period, the stock has lost 8.84 percent as against the benchmark Nifty which has dipped 1.5 percent during the period.
Ambuja Cement also gained and ended 0.67 percent higher from its previous close at Rs 292.15. However, the stock has dropped 6.74 percent in the past five days.
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Meanwhile, Dalmia Bharat shares also plunged to a 52-week low of Rs 1,353.20. The stock finished 1.46 percent lower at Rs 1,405.90. In the past five days, the stock has erased more than 10 percent of investors’ wealth.
The mixed trend in the shares comes as experts suggest the energy sensitivity of the sector is going to come to the fore as petcoke and coal prices have gone up.
Earlier on Thursday, Motilal Oswal said, that every $10 increase in petcoke as well as thermal coal could increase costs by Rs 41-52 per tonne, which is 5 percent of the Q3FY22 EBITDA per tonne. According to Motilal Oswal, the cement companies would have to increase prices by Rs 3 per bag to offset the rising input costs.
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Global brokerage Jefferies said its checks suggest a 4-5 percent month-on-month (MoM) price hike in the southern, western and eastern regions. All-India average price is up 3 percent MoM in February, the brokerage said, adding that Q4 average price hike of 1 percent is below estimates.
Price announcements for March are muted despite cost rally, Jefferies added.
Sources have told CNBC-TV18 that cement prices in south India are likely to be hiked by Rs 30-40/bag. They added that the higher input costs are the key reason for the price hike.