Ambuja Cement Ltd’s power & fuel and freight cost surged in the March quarter compared to a year ago. This is disappointing and comes at a time when volume growth of many cement makers is getting a boost from capacity additions. The fact that UltraTech Cement and Shree Cement have been adding capacity by over 20% via organic and inorganic routes gives them an edge over Ambuja Cement. Also, it puts Ambuja Cement at a risk of losing market share in the medium-term. As for the stock’s performance, on a year-to-date basis, shares of Ambuja Cement have declined more than the aforementioned companies.

Source: Mint May 07, 2018 04:07 UTC