Sagar Cements shares jumped 20 per cent to hit 52-week high of Rs 530.2 on Friday. The Hyderabad-based company sold 1.98 metric tonnes of cement in the month of March 2016, a 16 per cent year-on-year jump, Sagar Cements said in a release to the Bombay Stock Exchange.
In last one month, Sagar Cements shares have rallied 45 per cent as compared to nearly 0.5 per cent fall in the broader Sensex.
Sagar Cements’ production for the month of March stood at 2 lakh metric tonnes compared to 1.4 lakh metric tonnes year-on-year. For the fiscal year 2015-16, Sagar Cements registered a growth of 7 per cent in its production at 16.54 lakh metric tonnes.
Cement companies have been on investors’ radar since the last one month because of improvement in pricing and demand.
“After four years of contraction, there are initial signs that the demand growth has picked up in south. State budgets have been announced and they have given a very good hope in terms of capex… Pricing across the geographies has also firmed up… I think, over the next 3-4 years utilisation will reach over 80 per cent,” said Mangesh Bhadang, cement sector analyst at Nirmal Bang Securities.
Sagar Cements shares closed with 20 per cent gains at Rs 530.2 compared to 0.05 per cent fall in the broader Sensex.
[“source-ndtv”]
