ACC slips as FIIs to keep away
India’s largest cement manufacturer ACC lost 2.50% to Rs 1,070, after RBI restricted further FII purchases in the scrip.
As many as 94,842 shares changed hands in the counter on BSE.The stock has witnessed a steady rally in the past few sessions, from Rs 997.65 on 9 November, to advance to Rs 1,097.40 by 17 November, as buying continued on the back of firm cement prices. It had surged to a new all-time high of Rs 1,109.70 on 17 November 2006.
ACC's production for October 2006, rose to 1.66 million tonne compared to 1.49 million tonne in October 2005. Cement despatches increased to 1.64 million tonne for October 2006, compared to despatches of 1.51 million tonne in October 2005.
The latest deal on 16 November, in which Holcim bought 5 crore shares of Gujarat Ambuja Cements from the founders at Rs 138.75 per share through block deals, showed that the consolidation in the cement sector will gather pace. The sharply growing Indian cement industry - second only to China - has attracted many foreign cement majors, which see great demand for the commodity in a infrastructure hungry country.
The deal price was over 30% higher than Rs 105 per share, including a non-compete fee that Holcim paid founders to buy 14.8% in Gujarat Ambuja Cements in January this year.
Swiss cement major Holcim holds 35% in ACC.Two other cement makers have already entered the Indian markets. Lafarge entered India by buying Tata Steel’s cement business. A few months back, Heidelberg Cement bought south India-based Mysore Cement.
Analysts feel that a consolidation in the Indian cement industry is inevitable, the sector being highly fragmented. The top-five producers account for 55% of India's total production (125 million tonne a year), while a large number of small producers make up for the balance.
ACC posted a marginal rise in net profit at Rs 225.3 crore in the September '06 quarter compared with Rs 224.74 in the same quarter of the previous year.The apparent small growth in profit was because of an exceptional item for Rs 132.2 crore in the previous year. Excluding the exceptional item, ACC's profit has grown 143.5% quarter-on- quarter.Net sales increased 30.4% to Rs 1,391.6 crore during the quarter, while actual volume sales was up 8.4% at 4.3 million tonne. Improved realisation and volume partially offset an increase in cost of inputs and resulted in higher operating for ACC.
As many as 94,842 shares changed hands in the counter on BSE.The stock has witnessed a steady rally in the past few sessions, from Rs 997.65 on 9 November, to advance to Rs 1,097.40 by 17 November, as buying continued on the back of firm cement prices. It had surged to a new all-time high of Rs 1,109.70 on 17 November 2006.
ACC's production for October 2006, rose to 1.66 million tonne compared to 1.49 million tonne in October 2005. Cement despatches increased to 1.64 million tonne for October 2006, compared to despatches of 1.51 million tonne in October 2005.
The latest deal on 16 November, in which Holcim bought 5 crore shares of Gujarat Ambuja Cements from the founders at Rs 138.75 per share through block deals, showed that the consolidation in the cement sector will gather pace. The sharply growing Indian cement industry - second only to China - has attracted many foreign cement majors, which see great demand for the commodity in a infrastructure hungry country.
The deal price was over 30% higher than Rs 105 per share, including a non-compete fee that Holcim paid founders to buy 14.8% in Gujarat Ambuja Cements in January this year.
Swiss cement major Holcim holds 35% in ACC.Two other cement makers have already entered the Indian markets. Lafarge entered India by buying Tata Steel’s cement business. A few months back, Heidelberg Cement bought south India-based Mysore Cement.
Analysts feel that a consolidation in the Indian cement industry is inevitable, the sector being highly fragmented. The top-five producers account for 55% of India's total production (125 million tonne a year), while a large number of small producers make up for the balance.
ACC posted a marginal rise in net profit at Rs 225.3 crore in the September '06 quarter compared with Rs 224.74 in the same quarter of the previous year.The apparent small growth in profit was because of an exceptional item for Rs 132.2 crore in the previous year. Excluding the exceptional item, ACC's profit has grown 143.5% quarter-on- quarter.Net sales increased 30.4% to Rs 1,391.6 crore during the quarter, while actual volume sales was up 8.4% at 4.3 million tonne. Improved realisation and volume partially offset an increase in cost of inputs and resulted in higher operating for ACC.
posted by SY at 3:41 PM
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