According to multiple sources, shares of Mangalam Cement grew nearly 5% after the company announced commencement of production at a new 0.75 million tpy unit. The company announced that the grinding unit is in Aligarh, Uttar Pradesh. The start of its commercial operations from the unit has increased the overall capacity of the cement maker to 4 million tpy from 3.25 million tpy.
The stock jumped 4.63% to hit a high of Rs 350 on BSE. Mangalam Cement has commenced commercial production at its new cement grinding unit of 0.75 million million tpy capacity in Aligarh, Uttar Pradesh.
"Demand for cement sector grew merely by 3% in Q1FY17, which is expected to remain in the same range in Q1FY17 as well. However, favourable monsoon and ease of water issues in Madhya Pradesh and Maharashtra are expected to cast positive impact on consumption as many projects were stuck for want of water. The government's continuous thrust in development of Roads & Highway and irrigation sector will propel demand, going ahead," said Reliance Securities in a note.
The brokerage likes Mangalam Cement among its midpcap cement picks and has a price target of Rs 390.
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