New Delhi, March 27 -- Shares of major cement manufacturers ACC Ltd, Ambuja Cements Ltd and UltraTech Cement Ltd have gained 17-32% in the last six months. Does this suggest that all is hunky dory in the sector? Not really.

The muted trend in cement prices has become a niggling worry. Prices have fallen even in a seasonally strong March quarter (Q4) and remained weak for the fifth month in a row. As such, FY24 exit prices could be subdued as the year-end chase to meet volume targets intensifies. This would weigh on the near-term realization outlook.

It also means that the benefits of softening input costs and the recent cut in diesel prices would help the sector's earnings performance only to a certain extent.

"Given the sharp drop in ...