Kumar Mangalam Birla said that the demand for cement is highly linked to the housing and infrastructure sector. The sales of the industry are increasing due to the government’s mission of housing for all by 2022 and large infrastructure projects currently underway.
The prospects for the cement industry are better in the financial year 2021-22.
UltraTech Cement chairman Kumar Mangalam Birla said the Indian cement industry is growing sales with the help of several government initiatives and has “bright” prospects in the current financial year. The latest annual report by the Aditya Birla Group firm said government expenditure on infrastructure projects and affordable housing schemes like the Pradhan Mantri Awas Yojana (PMAY) will help the cement industry achieve growth.
Kumar Mangalam Birla told the shareholders, “The demand for cement is highly linked to the housing and infrastructure sector. The sales of the industry are increasing due to the government’s mission of housing for all by 2022 and the ongoing large infrastructure projects. Regarding the impact on the industry due to the corona virus epidemic, Birla said that due to this, the cement industry declined by 10-12 percent, although it has started showing signs of rapid improvement in the second half.
Things got better from May 2020 onwards
Birla said the constraints were high in the first quarter of the financial year 2020-21 due to shutdown of production, imposition of restrictions by the states, mass exodus of labour. He further said that however with the steps towards opening up of the economy by the central and state governments, the situation has improved since May 2020 and the consumption of cement, especially in rural markets, was better than expected.
The stock is expected to reach 8800
The closing price of UltraTech Cement shares was Rs 7596 at the close of trading today. Rs 7675 is the 52-week high of its stock. The minimum level is Rs 3735. The market cap of the company is 2 lakh 19 thousand 270 crores. Share Khan Research has kept the target price for UltraTech Cement at Rs 8800 in its report. He said that despite Corona, there has been a growth in volume, apart from this, the price has also increased. This target price has been kept for the financial year 2024.
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