According to analysts, capacity utilisation of most cement companies showed signs of revival. Each passing day sees the stock of Shree Cement recording a new peak at the bourses.
On December 18 too, Shree Cement’s stock scaled a record high of Rs 4,539, but ended at Rs 4,450 on the BSE, one per cent lower than the previous day’s close on account of profit-taking.
Analysts said Shree Cement sells most of its produce in the northern region. With no new major capacity addition coming up in the North, the company should benefit and would be able to pass on any increase in production cost. Recently, Bank of Merrill-Lynch upgraded the stock from ‘neutral’ to ‘buy’ due to visible bottoming of the industry’s capacity utilisation in FY13E.