2 Cement Stocks Hit Their 52-Week Low; Is Correction Of 8%-16% An Opportunity To Buy Them?

Cement stocks continue to witness a downfall since the last few days. Leading stocks like Ultratech Cements, JK Cements, Shree Cement, Birla Corporation Ltd have already touched their 52-week low levels in the intra-day trade here on Monday. The decline in the cement sector has been triggered primarily by Ultratech Cement's capex plan as leading Swiss building material company Holcim Ltd approved to sell its Indian stake to Gautam Adani. These developments have signaled stiff competition for the cement sector in the coming days.

Earlier on Friday, the shares of the cement sector witnessed a sharp dip of 3% to 10%. Amid the decline, two cement stock lost significantly namely Shree Cement and Ultratech cement. These cement stock have seen a dip of nearly 8% to 16% in 30 days-time span.

1. Ultratech Cement

The stock has lost nearly 1.74% today to close at Rs 5,580 apiece on NSE. The stock has fallen nearly 8.54% in just 7 days and 7.75% in one month. Now with today's loss, the share has touched its 52-week low level. The 52-week high and 52-week low of the stock is 8269 apiece and 5575 apiece, respectively.

Meanwhile, Ultratech reported a surge of 47.6% Y-o-Y in consolidated net profit at Rs 2620 crore for the quarter ending March 31 as against Rs 1775 crore in the previous financial year. The net sales of the company got a big boost of 9% Y-o-Y at Rs 15,557 crore in the current quarter as against Rs 14,232 crore in the previous quarter.

2. Should You Buy Ultratech Cement stock?

Leading brokerage firm Sharekhan is optimistic about Ultratech Cement despite the sharp fall in the stock prices and has given a buy call with a target price of Rs 7100.

3. Shree Cement Ltd.

The stock lost almost Rs 645 apiece today with a loss of 3.08%. The 52-week high of the stock is 31,469 apiece and 52-week low is 19,913 apiece, respectively. The stock has fallen over 10% in just one week and over 16% in just one month. Earlier, Shree Cement Ltd declared its Q4 results wherein the standalone net profit dipped 16% Y-o-Y at Rs 645 crore as against Rs 768 crore in the previous year.

However, the revenue of the company surged to 3.6% to Rs 4099 crore. For the complete period beginning from April- March 2022, standalone PAT saw a growth of 2.8% to Rs 2,377 crore.

4. Should you buy Shree Cement Stock?

Brokerage firm Sharekhan has given a buy rating for the stock of Shree Cement Ltd. for a target price of Rs 26,000 in its report.