CEMENT STOCKS WSLT UNDER GOVERNMENT PRESSURE--Already squeezed profit margins to face further pressure

摘要

Cement stocks on the BSE continued their free fall witnessed through the week, with the Government exerting pressure on companies to lower prices, thereby squeezing the already stressed profit margins. UltraTech Cement plunged by 11.93 per cent to Rs. 668 over the week, India Cement 8.52 per cent to Rs. 154, ACC 7.84 per cent to Rs. 683, Shree Cement 6.49 per cent to Rs. 900, Madras Cement 6.10 per cent to Rs. 2,940, Grasim 5.88 per cent to Rs. 2,218 and Dalmia Cements moved down by 4.48 per cent to Rs. 270. Investors continued to dump their holding in cement companies with ACC leading the losers' list with a drop of 2.66 per cent, India Cements 2.22 per cent, Shree Cement 2.12 per cent and Grasim lost 1.64 per cent. As part of its anti-inflation measure, the Government banned cement exports, though the country ships less than 3 per cent of the total production. However, prices did come down in the coastal regions, especially in Gujarat, which accounts for 90 per cent of total exports.