Bullish growth in Ultratech cement Ltd
India’s leading manufacturer of grey cement, ready mix concrete (RMC) and white cement, UltraTech Cement Ltd (NS:ULTC) Q3 results helped it boost its performance in the stock market making it reach its highest price since June 2019. Also, the company’s net sales slipped 1% to Rs 10,176 crore in Q3FY19-20 and its profit was better than its previous quarter which rose upto Rs. 711 crore.
The company is also planning to expand its cement capacity from 9 million tpa to 14 million tpa in Anantapur and Kurnool district as it is focusing on expanding its operations and market share over the country. The government in their Union Budget 2020 also mentioned that there would be infrastructure projects over the country which would be worth Rs.103 trillion. This announcement would definitely have a positive impact on the building material/construction sector which has a major role to play.
The following chart of Bollinger bands shows that last formed candlestick has reached its lower band and the candlestick formed has been bullish, which indicates that the share price of that stock would be increasing in the upcoming session. The lower band also acts as a support level which helps in traders to take their position in the market. The Moving average line also signifies that there will be an upward trend in the share price of the company and is expected to be bullish.
The Ichimoku cloud indicator also displays the bullish trend of the stock as the red cloud has ended and the formation of the green cloud has begun along with an upward trend. Also, the conversion line is above the baseline indicating a buy signal for the stock and also the acquisition of Century cement which will add to its capacity. The company has been taking various measures to reduce its debts and also cost-cutting measures which will have an impact on its net sales and profits. With the reduction in the price of materials like petcoke to 30% cheaper than last year, the cement companies would benefit and their performance would also improve.
