Cement Stocks Outlook for the week –
13 to 17.06.2016
(Up next week as demand revives in
some areas)
( www.rupeedesk.in )
Shares of
cement manufacturing companies are seen trading higher next week as demand for
the building material is seen picking up in central India and that in east India
remaining strong. Except east India, demand for cement has been weak across regions over
the past few months, but channel checks suggest revival in government spending in
the central region ahead of state elections in Uttar Pradesh. East India
continues to register strong cement sales growth on higher spending by state governments,
even as cement sales in west India remain weak primarily due to drought in Maharashtra, Bagmar added.
Recovery in
price is also likely to assist shares of cement companies. All-India cement prices rose
by about 6 rupees to around 322 rupees per 50-kg bag in June. Cement prices
continue to see a gradual improvement in west India, gaining around 20 rupees per bag
since February, even though the region still has the lowest prices among all. Prices have
remained stable in north, central regions after sharp hikes in March, which will boost
realisation of companies in Apr-Jun, especially for regional companies with higher sales
mix.
