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Cement stocks surge as Jefferies forecasts recovery in second half of fiscal year

Cement stocks experienced a rally on December 2, led by Ultratech Cement, which rose over 3% to become the top gainer on the Nifty 50. Jefferies forecasts an 8-10% volume growth in H2FY25, driven by improved demand and government capital expenditure revival, with Ultratech and JK Cement identified as top picks. Other companies like Shree Cement and ACC also saw gains of 2-3%.

jk lakshmi cement receives buy rating with revised target price of rs 900

JK Lakshmi Cement's standalone revenue fell short of estimates due to weak volumes, and operational profitability was negatively impacted by higher-than-expected costs. The company plans to expand capacity, albeit with delays, and aims for growth in line with industry rates for FY2025. A merger of subsidiaries is expected to enhance corporate efficiency and strengthen the balance sheet, leading to a revised target price of Rs. 900, maintaining a BUY rating.

quarterly earnings reports reveal mixed results across various sectors

The Q2 earnings season for FY25 is underway, with major companies like Apollo Hospitals, Kansai Nerolac Paints, and Trident set to release their results. While many firms have reported, the overall corporate earnings scorecard has been weak, with only 62% meeting or exceeding profit expectations, particularly in the consumption sector. Notably, GAIL's earnings missed expectations due to lower gas trading margins, while Power Grid's profit remained flat year-on-year.
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