Andhra Cement on upper circuit

Cement stocks are as such rallying on the bourses but the lead seems to have been taken by Andhra Cements. A small cap, penny stock, it has hit the upper circuit today at Rs.10.87, up 5%, the moment it opened for trading.

Couple of reasons for this 5% jump  - firstly there is major hope that post the birth of Telengana, there will be a lot of rebuilding all over and that could mean increased demand for the company. Secondly, this stock and all other cement stocks are up because price hikes to the tune of 30-35% all across India has come in. Andhra and Chennai has seen a price hike of around Rs.60/bag, which means price is now currently at around Rs.265.bag. But one has to remain cautious as monsoon is usually a lean season for cement and one does not know if these price hikes will sustain