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Stocks of major cement companies to trade with a positive bias next week, as the Jan-Mar earnings of ACC, Ambuja Cements, and UltraTech Cement signal better times for the sector. Market sentiment has turned positive for the sector, following the better-than expected set of numbers by the three top industry players.
Ambuja Cements, especially, showed improvement in operating margin with its prudent cost control initiatives. Also, demand for cement has improved over the quarter and is seen stable after the general elections. Investors will now eye Jan-Mar earnings of Shree Cement on Monday. Sequentially, Shree Cement, like its peers, is expected to report strong improvement in profitability.
According to Deutsche Bank Markets Research, cement demand in Northern and Eastern India has improved to over 6% while in other parts it continues to be subdued at 3-4%, implying all-India demand growth could be 5-6%.The demand-supply gap is turning gradually more favourable, particularly in the Northern and Western regions.
Stocks of major cement companies to trade with a positive bias next week, as the Jan-Mar earnings of ACC, Ambuja Cements, and UltraTech Cement signal better times for the sector. Market sentiment has turned positive for the sector, following the better-than expected set of numbers by the three top industry players.
Ambuja Cements, especially, showed improvement in operating margin with its prudent cost control initiatives. Also, demand for cement has improved over the quarter and is seen stable after the general elections. Investors will now eye Jan-Mar earnings of Shree Cement on Monday. Sequentially, Shree Cement, like its peers, is expected to report strong improvement in profitability.
According to Deutsche Bank Markets Research, cement demand in Northern and Eastern India has improved to over 6% while in other parts it continues to be subdued at 3-4%, implying all-India demand growth could be 5-6%.The demand-supply gap is turning gradually more favourable, particularly in the Northern and Western regions.
