Money Tree

Finally the cement companies succumb to the pressure of Government and promise to keep the prices of cement intact for next one year and shall bear the burden of additional taxes, levies, etc. imposed by the Government during this period.

With this the Government has been able to contain three vital commodities sugar, cement and steel, contributing to inflation.

The expected earnings of the cement companies for FY 08 will be revised in view of the above and would be downgraded by about 5 to 10 percent. The stock prices of most of the cement companies have already been corrected by 5 to 15 percent and the sector is expected to be in the phase of consolidation for some time.