stock market today Ahead of Ambuja Cement’s results for Q3FY22, cement stocks are in the heat of sell-off. UltraTech Cement shares are down nearly 1 per cent, Shree Cement shares are down 0.50 per cent, JK Cement share price is down 1.50 per cent from yesterday’s close, Ramco Cements is down nearly 1 per cent while ACC Cement shares are close to half. One percent today.
According to stock market analysts, ahead of Ambuja Cement’s results, cement stocks are under pressure as the market is expected to remain weak from the cement company in the third quarter. He said the market is trying to adjust with the new EPS (earnings per share) and P/E ratio of cement companies as compared to P/E ratio and EPS of Ambuja Cement in view of weak Q3 results. He further said that the main reason for the cement company’s weak third quarter results is rising costs after the jump in coal prices.
Speaking on why cement prices are under pressure ahead of Ambuja Cement’s results for the October to December 2021 quarter; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “Cement stocks are witnessing a selloff ahead of Ambuja Cement results announcement as the market is expecting a weak Q3 from the cement major. Input costs have increased recently. Quarterly after the increase in coal prices. Therefore, the company’s input costs will increase the company’s margins, even when they manage to keep their revenues at a high level.”
on how Ambuja Cement’s weak results could affect other cement companies; Ravi Singhal, Vice Chairman, GCL Securities said, “In view of Ambuja Cement’s weak Q3, the market is adjusting the EPS and P/E ratio of Ambuja Cement shares. Ambuja Cement shares are adjusting the P/E ratio and EPS. After doing so, the indicators of these other cement stocks have gone down and that is why there is pressure on other cement stocks ahead of Ambuja Cement’s Q3 FY22 results.”
When asked about buying shares from the cement segment in this falling cement stocks, Ravi Singhal of GCL said that cement companies expect weak results in the coming quarter as well as rising coal prices will increase its input cost in the near term. are supposed to. He advised positional investors to look at metals, banking and real estate stocks instead of cement stocks.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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