Severe crack in cement stocks

Cement stocks slide further in today’s trade, where broader indices Sensex and Nifty fell over 2%. Several cement stocks have touched their 52-week lows in today's trade.

Index heavy weight ACC has lost 9.80% from its previous close. Other predominant cement stocks like Ambuja Cements, Rain Commodities, India Cements have lost over 6% as against previous close.

The sector continued to underperform. Operating profit margins of the cement companies are on declining side.

Concern for Cement Industry are 1) Government intervention on cement price 2) Slow down in real estate business because of higher interest rate, 3) Excess production than actual demand 4) Monsoon might hit sales in coming quarters and 5) Capacity addition might get delay due to rise in interest cost.

In last six months major crack is seen in cement stocks. India Cements lost 55%, ACC lost 48%, Ambuja Cement 48% and UltraTech Cement 45%.

List of cement stocks that lost in today's trade