Cement
Stocks Outlook for the week – 25 to 28.08.2014
( www.rupeedesk.in )
Stocks of major
cement companies are expected to trade with a positive momentum next
week on optimism over
a demand uptick. Shree Cement Ltd will be in focus as the
company will detail
its Apr-Jun earnings. Kolkata-based Shree Cement may see reduced
profitability due to
price constraints and a rise in key input costs despite increased
demand for cement in
Apr-Jun.
We remain positive on
the cement sector where Grasim Industries, ACC and
UltraTech Cement are
our top picks in the large-cap space while JK Lakshmi
Cement, India Cements
and HeidelbergCement are our top picks in the mid-cap
Segment.
We have downgraded JK
Cement from Buy to Sell as the stock price has run up 62% in
the past three months
and 171% in the past six months, which factors in potential
earnings benefits. We
have also downgraded Shree Cements and UltraTech Cement from
Buy to Accumulate
following a run-up in their stock prices.
