A look at the Cement stocks: ACC, Ultra Tech…

by khalid on 10/09/2011 · 1 comment

Due to the recent CCI’s action most of the people have been maintaining a negative view on the stocks of cement sector particularly Ultra Tech, Ambuja Cement, ACC. All these companies are seeking adjournments for the time being.

For the moment they have sort adjournment for a period of two months. In case a kind of penalty gets imposed by CCI in the case of DLF the estimated liability will crop up to much higher levels. Considering the average annual turnover to be the parameter of the last three years it could well surpass 5-9%.

Therefore the expected level of liability could fall anywhere between Rs.1700- Rs 1,800 crores.

It has also to be noted that besides these three companies some other companies which include JP Associates and Century Textiles are also lined up. All the investigations are still on due to the fact of either the companies being in the group of the concerned companies or is having colluded with any of these companies.

The primary damage might be only witnessed in case of ACC, Ambuja Cement, and Ultra Tech. And the only reason for this is that ACC and Ambuja holds about 50 million tonnes of capacity. Ultra Tech is not much far away and has the capacity of 45 to 50 million tonne. This in turn seems to be serious concerns for these stated companies.

Bell the Bull says: The fate of the stocks of these companies largely relies on the decision pending and could lead the stocks to either ways.

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