UltraTech Cement shares hit new all-time high, will the momentum continue?

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₹8,960 apiece, registering a 2.60% gain in today's trading session. This came after the company, in an exchange filing on Wednesday, said it had acquired 0.54 mtpa cement grinding assets of Burnpur Cement Limited, located at Patratu in Jharkhand, at a consideration of ₹169.79 crore.

This strategic investment marks UltraTech Cement's entry into the state of Jharkhand, and with this addition, the company's total capacity in India has reached 133 mtpa, solidifying its position as the country's largest cement manufacturer. Also Read: Reality check for cement sector as prices dip in Nov The demand for cement has remained robust post Covid-19, exhibiting a CAGR of 9% from FY21 to FY23.

This demand surge is attributed to increased government spending on infrastructure development, affordable housing initiatives, and strong demand for urban housing and real estate. Additionally, favorable factors such as a decline in raw material costs, lower-than-expected rainfall, and strategic price hikes have contributed to cement companies, including UltraTech, delivering strong financial performance for the quarter ending in September.

Also Read: Q2FY24 earnings review: Cement companies report strong Q2 numbers, aided by lower rainfall and price hikes Going forward, domestic brokerage firm Motilal Oswal anticipates a sustained surge in demand for cement, driven by key factors such as government-led infrastructure projects, housing schemes, individual housing segments, and a robust recovery in the real estate sector. The road sector is likely to contribute more to this growth, as both the Ministry of Road Transport and Highways and the National Highways Authority of India (NHAI) have posted a 25% and 14% YoY growth in their total outlays,