Shares of Ramco Cements are at a 6 months high. Know why

Shares of Ramco Cements Ltd., a midsized maker of the commodity in Southern India, were at their highest in six months after the company announced a strong set of numbers that were boosted by lower transportation and raw material costs.

Ramco Cements said its first quarter Net Profit rose 167 percent to 94.7 crore rupees compared with 35.5 crore rupees in the same quarter a year ago. Sales during April-June fell marginally 953 crore rupees from 961 crore rupees in the year ago period.

Ramco Cements rose 9.90 rupees, or 2.7 percent, to 369.85 rupees, its highest level since January 30th, on the National Stock Exchange, where 1.61 lakh shares were traded by 10:15 am compared with the 5-day average of 1.40 lakh shares.

Ramco Cement's market capitalisation has jumped 35 percent in the past one year to 8,830 crore rupees as investors preferred strong regional cement plays instead of companies with a nationwide presence.

Image credit: Indiatimes