Cement Stocks Outlook for the week – 07 to 10.10.2014

Cement Stocks Outlook for the week – 07 to 10.10.2014 )

Stocks of cement companies to be range bound in the coming week, as no major fundamental development is likely in the sector. Trading volumes will be weak during the four-day week, in line with the market.

The mood around cement stocks is generally good as demand is seen rising post monsoon, which 
is in its last leg. While we remain bullish on the overall sector, our near-term top-picks are ACC, JK Cement, India Cements and Mangalam Cements. Rising cement demand and prices would continue to drive consensus earnings upgrades going forward and on replacement cost basis, the stock valuations are still trading at discount to their last bull cycle period of 2006-2010 (Apr- Mar).