HDFC Securities sees positive growth in the cement sector. Thus, its margin ratio can see a good growth. The brokerage firm has predicted that it will see a positive growth in its margin ratio in the current financial year.
Cement prices are expected to increase due to continued fuel prices. This can be safe for cement companies.
In a report issued by the brokerage company, it is expected that the margin ratio of cement companies may improve.
With fuel prices continuing to rise at current levels, its capital cost is rising. Due to this, the margin ratio is expected to be affected.
Amidst this price increase is expected to have an impact on its EBITDA ratio.
Meanwhile, brokerage firm Ultratech Cement, Dalmia Bharat, Nuvoco Vistas, Birla Corp, JK Lakshmi and Star Cement reported stronger volumes than last quarter.
The volume of the same ACC and Ambuja Cements is slightly reduced. Due to this, these stocks are stocks to be considered while doing business in it.
In particular, stocks including Ultratech Cement, Dalmia Bharat and JK Lakshmi are among the best stocks.
HDFC Securities has recommended buy shares in Ultratech Cement, AC, Dalmia Bharat, Nivoco Vistas, Birla Corp, JK Lakshmi and Orient Cement.
Similarly, brokerage firms have predicted that companies including Ambuja Cement, Ramco Cement, Star Cement, Sagar Cements, Deccan Cement may increase their stake, and the same may reduce the stake in companies including Shree Cements, Heidelberg Cement and JK Cement.
Ultratech Cement — Buy – Target Price – Rs.8670
Shree Cement – May Cut – Target Price – Rs.22,600
Ambuja Cement – May Add – Target Price – Rs.415
ACC – Buyable – Target Price – Rs.2445
Nuovo Vistas – Buy Now – Target Price – Rs.495
Ramco Cement – Additions – Target Price – Rs.740
JK Cement – May Cut – Target Price – Rs.2545
Birla Corp – Buy – Target Price – Rs.1310
Heidelberg Cement – May Cut – Target Price – Rs.160
Star Cement – Addition – Target Price – Rs115
JK Lakshmi – Buy – Target Price – Rs.865
Orient Cement – Buy – Target Price – Rs.155
SAGAR CEMENT – ADDED – TARGET PRICE – 220
Deccan Cement – Add – Target Price – Rs455
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