GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 08 to 12.12.2014

Cement Stocks Outlook for the week – 08 to 12.12.2014

Stocks of major cement companies are seen trading with a positive bias next week as sales
volumes have increased despite prices remaining low. Several companies reported strong sales
volume growth of around 8-30% for November across regions on a low base of last year.
The main demand driver is still rural and semi-urban housing and not infrastructure and
construction sectors, which contribute the major share. The Core industry data showed a 1% on year de-growth in cement output for October.

Improvement in November dispatch growth is a positive surprise. But delay in on-ground pick
up in construction activities may reinstate pricing volatility at intervals. The cement prices have
been on a downtrend over the last couple of months, despite intermittent efforts of price hikes.
Since October, cement prices in the north and central regions have declined by 10-20 rupees per
bag. In the east, there has been a net decline of 4-5 rupees per bag, while in the west, price trends were mixed.