19.08.2021

Indian cement producers to increase output

ACC reported an over two-fold jump in consolidated net profit for the second quarter ended June 2021. The cement maker’s profit jumped to Rs 569.45 crore for the quarter ended June 2021.

Binod Modi of Reliance Securities spoke to his take on ACC and other cement companies.

“Going forward we believe with steady realisation in place, at the same time we believe that post-monsoon demand scenario also should improve quite a bit. So altogether cement space should continue to deliver better numbers going forward,” said Modi.

On ACC valuation, he said, “ACC still trades at 11.50x of CY23 earnings. So it looks quite attractive compared to other cement companies where valuations have already surpassed their all-time historical average. So definitely ACC has a scope as of now to get valuation re-rating.”

“In largecaps, we continue to maintain our positive view on UltraTech Cement. In midcaps, we remain quite positive about companies that are consistently adding capacities and securing their growth prospects. On these lines, we believe Jk Cement is one of our preferred pick, followed by Sagar Cements,” said Modi.

Region: India
Source: cnbctv18.com
Tags: production
The use of materials published on the site is allowed only with the reference to the source (the journal «Cement and its application») and a hyperlink to the quoted material.
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The use of materials published on the site is allowed only with reference to the source (the journal «Cement and its application») and a hyperlink to the quoted material.
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