CEMENT STOCK OUTLOOK FOR THE WEEK – 15 TO 19.09.2014
( www.rupeedesk.in )
Stocks of major cement companies are likely to track the trend in the broader
market next
week, with Jaiprakash Associates continuing to be the focus as the Street will
keep a keen
eye on developments around the company. Jaiprakash Associates shares, bantered on a
rumour that the company has defaulted on interest payments, rose around 5% last week
on "value-buying.
eye on developments around the company. Jaiprakash Associates shares, bantered on a
rumour that the company has defaulted on interest payments, rose around 5% last week
on "value-buying.
During the week, stocks of cement companies were largely rangebound and moving in
tandem with movement in the indices. Most of them, though, kept a positive bias as the
general mood on such stocks is that of optimism over recovery in demand after the
monsoon.
According IIFL Institutional Equities, the cement industry is in the middle of an exciting
phase of a multiyear upcycle. "Improvement in demand ahead of new capacity additions
is expected to drive strong 21-47% Ebitda (earnings before interest, tax, depreciation and
amortization), Cagr (compounded annual growth rate) and 26-64% EPS (earnings per
share).
