38 Cement Firms M-Cap Declined By Rs 67 Cr In A Week

Updated: Aug 31 2002, 05:30am hrs
Cement & products companies stock has been suffering in the recent past. This has been largely due to low demand, poor first quarterly results and oversupply of cement in the markets. This downward trend can be measured in a study of market capitalisation (M-Cap) of 38 cement & products stocks during the August 23 and August 30, 2002 period.

Aggregate M-Cap of the 38 companies decreased by 0.86 per cent (Rs 67 crore) to Rs 7,718 crore on August 30, 2002 from the level of Rs 7,785 crore on August 23, 2002. Most of the major cement companies like Shree Digvijay Cement, Satyam Cement, India Cements, JK Udaipur Udyog, Eternit Everest and Visaka Industries were responsible for this decrease. A decline was seen in the case of Shree Digvijay Cement, whose M-Cap decreased by 3.79 per cent to Rs 10.39 crore on 30 August, 2002 from Rs 10.80 crore on 23 August, 2002 despite reduction of loss in net profit during April-June 2002.

The loss of the company at the PAT level reduced from Rs 6.29 crore during April-June 2001 to Rs 3.71 crore during April-June 2002. Its net sales has increased by 15.2 per cent during the same period.

Another company, India Cements also shown a decline of 6.31 per cent to Rs 267.48 crore in its market capital from Rs 285.49 crore. This can be explained from its poor first quarter profit performance. The net profit of India Cements was at Rs 53.94 crore on April-June 2002 from a profit of Rs 11.61 crore on April-June 2001. Its net sales declined by 20.9 per cent to Rs 247.90 crore on April-June 2002 from the level of Rs 313.35 crore on April-June 2001.

Among others, negative changes of 2 per cent and more in M-Cap was seen in the case of Ambuja Cement Rajasthan (-2.94 per cent), Dalmia Cement (Bharat) (-2.33 per cent), Mysore Cements (-3.42 per cent), Narmada Cement (-5.71 per cent), Priyadarshini Cement (4.69 per cent), Ramco Inds (-2.54 per cent), Roofit Inds (-7.53 per cent) and Shree Cement (-2.40 per cent).

Several other companies M-Cap also declined. Mention may be made of Birla Corporation, Gujarat Ambuja Cements, Ambuja Cement Eastern, Hyderabad Industries and Prism Cement. An increase in M-Cap was observed in the case of Andhra Cements (7.84 per cent), KCP Ltd (1.43 per cent), Shiva Cement (61.54 per cent) and Swastik Asbestos (6.48 per cent). The M-Cap of Andhra Cement increased by 7.84 per cent to Rs 31.18 crore from Rs 28.92 crore. This can be explained from its yearly profit performance. The net profit of the company turned out to be positive of Rs 28.83 crore during 2001-02 from the loss of Rs 6.86 crore during 2000-01. The sales of the company also increased by 15.8 per cent during the same period. It may be noted that out of 38 firm, 22 firms M-Cap has decreased during the study period.