Cement Stocks Outlook for the week – 14 to 18.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of major cement companies
to follow the trend of the broader market next week in
the absence of a sector-specific
trigger and remain range-bound. Jan-Mar earnings of
cement companies are expected to
be mixed. Companies with exposure to the north India
market are expected to report
improvement in results while south India-based companies
may continue to report a decline
in earnings.
The budget has provided the
much-needed fillip to infrastructure and housing sectors.
The response has been good, but
during the week, focus will largely be on economic data
and earnings of companies for the
quarter ended June.
In Jan-Mar, the cement industry
is expected to report strong volume growth of around 8%
on-year on account of low base, a
delayed monsoon and the lag impact of pre-election
spending. However, cement volume
is likely to decline marginally by 1% on-quarter, due
to seasonality.
Firms having a higher presence in
north and west India (Shree Cements, JK Cement and
JK Lakshmi Cement) are likely to
post strong double-digit volume growth due to robust
demand in key markets. All-India
average cement prices are expected to improve by 4%
on-quarter and 3% on-year, due to
the full impact of sharp price hikes witnessed in north
and west India during
Feb-Mar 2014