Latest news with #AmbujaCements
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Business Standard
3 days ago
- Business
- Business Standard
Cement shares in focus: Why Dalmia, Sagar, Birla Corp rose up to 4% today?
Cement companies share price today Shares of cement companies were in focus on Tuesday as they traded higher by up to 4 per cent. The rise in cement share prices came after companies from the sector that have announced their June quarter (Q1FY26) earnings so far, reported a strong operational performance during the quarter. India Cements, Dalmia Bharat, Sagar Cements, Birla Corporation, and The Ramco Cements shares were trading higher in the range of 2 per cent to 4 per cent. Ambuja Cements, ACC, Shree Cement, JK Cements, and JK Lakshmi Cement, meanwhile, were up less than 1 per cent. In comparison, the BSE Sensex was up 0.19 per cent at 82,359 at 09:27 AM. In the past one month, the stock price of UltraTech Cement, Dalmia Bharat, Ambuja Cements, ACC, Shree Cement and JK Cements have surged between 10 per cent and 15 per cent as against a 0.61-per cent rise in the BSE Sensex. Check List of Q1 results today Cement sector: Q1 results UltraTech Cement's profitability improved considerably on a year-on-year (YoY) basis in Q1FY26, led by healthy volume growth amif improvement in realisation. Volume growth visibility, according to analysts, remains strong considering the company's continuous focus on adding capacities and gaining market share across regions (target to reach total capacity of 217 mtpa by FY27 from current capacity of 192.3 mtpa). Moreover, with a strong focus on operational efficiencies (target of further reduction in total cost/tonne by ₹300/tonne over the next 2-3 years), overall operational performance is expected to improve substantially in the coming period, they said. Sagar Cements' operational performance, too, came above expectations, mainly on account of higher-than-expected realisation and improvement in capacity utilisation rates across plants (including subsidiary units like Andhra Cement). Moreover, management guided the sales volume of 6 mtpa for FY26E, which implies a growth of ~9 per cent Y-o-Y. With focus on operational efficiency measures, overall profitability is expected to improve substantially going forward, ICICI Securities said in a note. Track Stock Market LIVE Updates Cement industry outlook Cement industry saw a slowdown in demand during the first quarter of the previous financial year (Q1FY25), as general election 2024 resulted in curtailed demand due to lower government spending and labour availability. Heavy rains during the monsoon period further impacted the demand. As a result, the overall demand was soft during the first half (H1FY25). However, increased government spending and overall pick up in economic activities in the second half helped build much needed momentum in demand in the previous financial year. Going ahead, the Indian cement industry is poised for robust growth, driven by infrastructure spending, urbanisation, and housing demand. While overcapacity and low utilisation rates pose short term challenges, strategic expansions, consolidation, and sustainability efforts position the sector for long-term success, analysts said. "During FY26, the industry is expected to achieve 6.5-7.5 per cent demand growth fueled by infrastructure projects, rural recovery and real estate momentum. The industry's ability to balance growth with sustainability and cost efficiency will be critical to cementing its role in building a new India," Shree Cement said in its FY25 annual report. Meanwhile, the share of the infrastructure segment in cement demand has been increasing over the past decade, mainly due to a surge in the government capital expenditure in the infrastructure segment. The infrastructure segment's share has doubled from 11-13 per cent in FY2012-13 to 29-31 per cent in FY 2023-24 with corresponding reduction in share of housing, industrial and commercial demand. Going forward, JK Cement expects the infrastructure segment share to rise further to 32-34 per cent by FY 2028-29 due to the continued increase in central and state capital expenditure on roads, railways, metros, airports, and irrigation. The sector's growth remains volume-led, anchored by government-led infrastructure development, private capital expenditure, and housing expansion. The sector is poised for long-term growth, supported by housing, roads, metros, and infrastructure spending. However, competitive intensity in pricing is expected to remain high in the near term. For Ramco, the path forward is clear: deliver higher volumes from upcoming capacities, sustain efficiency, and scale adjacencies that add to margin stability, the management said.
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Business Standard
4 days ago
- Business
- Business Standard
Cement shares in focus: Why Dalmia, Sagar, Birla Corp rise up to 4% today?
Cement companies share price today Shares of cement companies were in focus on Tuesday as they traded higher by up to 4 per cent. The rise in cement share prices came after companies from the sector that have announced their June quarter (Q1FY26) earnings so far, reported a strong operational performance during the quarter. India Cements, Dalmia Bharat, Sagar Cements, Birla Corporation, and The Ramco Cements shares were trading higher in the range of 2 per cent to 4 per cent. Ambuja Cements, ACC, Shree Cement, JK Cements, and JK Lakshmi Cement, meanwhile, were up less than 1 per cent. In comparison, the BSE Sensex was up 0.19 per cent at 82,359 at 09:27 AM. In the past one month, the stock price of UltraTech Cement, Dalmia Bharat, Ambuja Cements, ACC, Shree Cement and JK Cements have surged between 10 per cent and 15 per cent as against a 0.61-per cent rise in the BSE Sensex. UltraTech Cement's profitability improved considerably on a year-on-year (YoY) basis in Q1FY26, led by healthy volume growth amif improvement in realisation. Volume growth visibility, according to analysts, remains strong considering the company's continuous focus on adding capacities and gaining market share across regions (target to reach total capacity of 217 mtpa by FY27 from current capacity of 192.3 mtpa). Moreover, with a strong focus on operational efficiencies (target of further reduction in total cost/tonne by ₹300/tonne over the next 2-3 years), overall operational performance is expected to improve substantially in the coming period, they said. Sagar Cements' operational performance, too, came above expectations, mainly on account of higher-than-expected realisation and improvement in capacity utilisation rates across plants (including subsidiary units like Andhra Cement). Moreover, management guided the sales volume of 6 mtpa for FY26E, which implies a growth of ~9 per cent Y-o-Y. With focus on operational efficiency measures, overall profitability is expected to improve substantially going forward, ICICI Securities said in a note. Cement industry outlook Cement industry saw a slowdown in demand during the first quarter of the previous financial year (Q1FY25), as general election 2024 resulted in curtailed demand due to lower government spending and labour availability. Heavy rains during the monsoon period further impacted the demand. As a result, the overall demand was soft during the first half (H1FY25). However, increased government spending and overall pick up in economic activities in the second half helped build much needed momentum in demand in the previous financial year. Going ahead, the Indian cement industry is poised for robust growth, driven by infrastructure spending, urbanisation, and housing demand. While overcapacity and low utilisation rates pose short term challenges, strategic expansions, consolidation, and sustainability efforts position the sector for long-term success, analysts said. "During FY26, the industry is expected to achieve 6.5-7.5 per cent demand growth fueled by infrastructure projects, rural recovery and real estate momentum. The industry's ability to balance growth with sustainability and cost efficiency will be critical to cementing its role in building a new India," Shree Cement said in its FY25 annual report. Meanwhile, the share of the infrastructure segment in cement demand has been increasing over the past decade, mainly due to a surge in the government capital expenditure in the infrastructure segment. The infrastructure segment's share has doubled from 11-13 per cent in FY2012-13 to 29-31 per cent in FY 2023-24 with corresponding reduction in share of housing, industrial and commercial demand. Going forward, JK Cement expects the infrastructure segment share to rise further to 32-34 per cent by FY 2028-29 due to the continued increase in central and state capital expenditure on roads, railways, metros, airports, and irrigation. The sector's growth remains volume-led, anchored by government-led infrastructure development, private capital expenditure, and housing expansion. The sector is poised for long-term growth, supported by housing, roads, metros, and infrastructure spending. However, competitive intensity in pricing is expected to remain high in the near term. For Ramco, the path forward is clear: deliver higher volumes from upcoming capacities, sustain efficiency, and scale adjacencies that add to margin stability, the management said.
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Business Standard
5 days ago
- Business
- Business Standard
NCLT approves merger of AEL's Adani Cementation with Ambuja Cements
The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation Limited, a wholly owned subsidiary of Adani Enterprises Limited (AEL), with Ambuja Cements Limited. "National Company Law Tribunal, Ahmedabad Bench (NCLT Ahmedabad) has on 18th July 2025 pronounced the order sanctioning the Scheme of Amalgamation of Adani Cementation Limited with Ambuja Cements Limited," Adani Enterprises said in an exchange filing. The Gautam Adani-led conglomerate had announced a consolidation of its cement businesses in June 2024. The scheme is set to take effect from April 1, 2024, once all steps in the merger agreement are completed, as stated in the 70-page NCLT order. Impact on Companies and Shareholders As part of the merger, Adani Enterprises will receive 8.7 million shares of Ambuja Cements. The swap ratio will be 174 shares of Ambuja Cements for every 1 share of Adani Cementation, the company had said in an earlier statement. The merger will be executed through share swapping. All property rights, assets, and liabilities of Adani Cementation will transfer to Ambuja Cements. The NCLT has instructed Ambuja Cements, a listed company, to "comply with all applicable regulations, circulars and directions" issued by market regulator Sebi, as well as stock exchanges BSE, NSE, and the Luxembourg Stock Exchange. Ambuja Cements' Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. Rationale and Strategic Benefits The consolidation is aimed at synergising Adani Group's cement operations, enhancing value addition, and improving operational efficiencies for both companies. "The amalgamation will help the transferee company to quickly start the construction activity at various sites of the transferor company and that of the wholly-owned subsidiary of the transferor company," both companies said. Adani Cementation holds lease rights to limestone mines, approximately 275 million tonnes at Lakhpat, Gujarat, and has proposed a major manufacturing unit at Raigad, Maharashtra. Market Position and Expansion Plans Adani Group forayed into the cement sector in September 2022 by acquiring a controlling stake in Ambuja Cement from Swiss company Holcim in a $6.4 billion deal. Adani Group has ascended to become India's second-largest cement manufacturer, recently crossing 100 MTPA of capacity. Meanwhile, UltraTech Cement, which recently acquired Kesoram and India Cements, remains the country's largest, already surpassing 150 MTPA, and is ambitiously targeting over 200 MTPA by financial year (FY)27.
Time of India
5 days ago
- Business
- Time of India
NCLT approves merger of Adani Cementation with Ambuja Cements
The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation with Ambuja Cements , which will help to consolidate Adani Group's cement business under one unit and bring synergistic benefits. Earlier in June 2024, the billionaire Gautam Adani-led group announced a merger and ownership restructuring of its cement assets, which are housed under Ambuja Cements and Adani Cementation, part of Adani Enterprises. Explore courses from Top Institutes in Select a Course Category Cybersecurity Finance MBA MCA Degree Management Operations Management Design Thinking others Healthcare Artificial Intelligence Leadership Product Management Project Management CXO Others Digital Marketing healthcare Public Policy Data Science Data Science PGDM Technology Data Analytics Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details Passing an order, the Ahmedabad bench of the NCLT, on July 18, sanctioned the Scheme of amalgamation of Adani Cementation with Ambuja Cements. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "The scheme of amalgamation annexed as Annexure I to the company petition is hereby sanctioned, and it is declared that the same shall be binding on the petitioner companies and their shareholders and creditors and all concerned under the scheme," said the two-member NCLT bench. The effective date of the amalgamation will be April 1, 2024, said the 70-page-long NCLT order. Live Events The intergroup merger is based on share swapping, and Adani Enterprises will get 8.7 million shares of Ambuja Cements. The NCLT has directed Ambuja Cements , a listed entity, to "comply with all applicable regulations, circulars and directions" issued by market regulator Sebi, and bourses BSE, NSE and Luxembourg Stock Exchange. Ambuja Cements Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. "All the property rights and powers of the undertaking of the transferor company (Adani Cementation) and all the other property rights and powers of the transferor company be transferred without any further act or deed to the transferee company (Ambuja Cements)," the NCLT order said. Adani Group is the second-largest Cement manufacturer in the country with over 100 million tonnes per annum (MTPA) capacity. While citing the rationale for the merger scheme, Adani Group entities said it will lead to enhanced value addition for both companies, and consequently, the value of the shareholders will increase. It will help Ambuja Cement to absorb the cement business of Adani Cementation, which will help it to enhance its manufacturing capacity more efficiently, seamlessly and economically. Besides, it will also help in improved utilisation of the combined resources of both companies, lowering the overheads and reducing compliance requirements. "The amalgamation will help the transferee company to quickly start the construction activity at various sites of the transferor company and that of the wholly-owned subsidiary of the transferor company," both companies said. Adani Cementation has lease rights of limestone mines, with resources of about 275 million tonnes at Lakhpat, Gujarat. It has also proposed to set up a manufacturing unit at Raigad, Maharashtra. Ambuja Cements, which has crossed 100 MTPA capacity in FY25 in a record time, mainly through acquisitions, now aims to reach 118 MTPA by FY 2026 and 140 MTPA by FY 2028, primarily through brownfield expansion projects. Adani Group is a new entrant in the cement sector. It entered the Cement sector in September 2022, after acquiring controlling stakes in Ambuja Cement from Swiss firm Holcim for USD 6.4 billion (about Rs 51,000 crore). Later, Ambuja Cements owns a 51 per cent stake in ACC Ltd , pursued inorganic growth, acquiring small companies as Hyderabad-based Penna Cement and Saurastra-based Sanghi Industries . Earlier this year, it also acquired Orient Cement from the CK Birla group. The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd , which has a consolidated capacity of 192.26 MTPA. PTI
Reuters
10-07-2025
- Business
- Reuters
Indian shares set for higher open on trade, earnings optimism
July 10 (Reuters) - India's stock benchmarks are poised to open higher on Thursday, supported by expectations of a trade deal with the United States and optimism over June-quarter corporate earnings. The Gift Nifty futures were trading at 25,558.5 points, as of 7:35 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open above Wednesday's close of 25,476.1. Asian markets inched higher at the open, chiming with overnight gains on Wall Street after U.S. President Donald Trump issued final tariff notices to seven minor trading partners. Investors await further developments as the Trump administration moves closer to a deal with its largest trading partner, the European Union. Earlier this week, the U.S. President also indicated that a deal with India was near. Both the Nifty and Sensex indexes have remained stable so far this week. "It appears that markets are in wait-and-watch mode, seeking clarity from U.S. trade tariff developments and the start of the corporate earnings season, the key near-term directional triggers," said Rajesh Bhosale, analyst at Angel One. As investors await an India-U.S. trade deal, focus is shifting to domestic earnings and structural growth drivers such as a likely rebound in urban demand and rising infrastructure-led spending, two analysts said. Tata Consultancy Services ( opens new tab, India's top information technology company, is scheduled to report its June-quarter results after market hours on Thursday. ** Ambuja Cements ( opens new tab says its subsidiary ACC ( opens new tab commissions a grinding unit in Jharkhand with a capacity of 1.5 million tons per annum, increasing the total installed cement capacity to 104.45 MTPA ** Emcure Pharmaceuticals ( opens new tab says U.S. drug regulator concludes pre-approval inspection at its oncology manufacturing facility in Gujarat with zero observations ** IDBI Bank ( opens new tab will be in focus after Reuters reported that the Indian government will complete its stake sale in the lender by October, citing government sources. ** Enviro Infra Engineers ( opens new tab, in a joint venture, receives an order worth 3.95 billion rupees from Maharashtra Industrial Development Corporation
