MC Inside Edge | Cement biggies break word, land bank worries for Godrej bulls, ultra HNI’s spiritual quest, PMS managers take cash call

God promise

A few months ago, the big guns of the cement industry met up at a Mumbai mansion and over food and drinks, promised to hold back production increases and not undercut each other on prices. But meet, greet and eat parties like these usually are greet, eat and cheat parties in disguise, be it any sector. A little over a month after the bonhomie, one player increased production. Another followed, and then one more. With the result that cement prices have been flagging despite strong demand, and stocks are under pressure. Having realised that a price war benefits nobody, moves are afoot to convene another meeting where the big guns will again promise the same things as they had in the previous meeting. Some brokers are said to be building positions in cement stocks in anticipation that the gentlemen will honour their word this time round.

Land ahoy?!

Godrej Industries' shares tanked on Thursday even as the family settlement is being viewed by the Street as a major positive. Some wealthy HNIs, including South-based Kochi Tusker, and many PMS funds had loaded up on the stock over the last year in anticipation of this development. But the market appears to be disappointed at the fact that there is no clear mention as to where exactly the land bank of the group will sit. That appears to be a secret for now, something that big investors are not liking.

Spiritual leaning