STOCKS NEWS
Date: 13/04/2012
Shares in cement producers rose after Citigroup upgraded Ambuja Cements, ACC and UltraTech Cement to buy from sell, citing better demand-supply equation and as new plants are more difficult to build.
The U.S. bank said it saw a potential for 20-40 percent rise in the share prices of the three companies on the back of rising profits.
"The demand supply gap should narrow in favour of producers," it said in a report to clients. "We feel the worst is over."
At noon, shares in Ambuja Cements were up 2.28 percent, ACC rose 1.05 percent and UltraTech was up 0.41 percent.
Citigroup said likely government intervention to control prices and the companies' inability to pass on cost increases were risks to its forecast.
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