Cement Stocks Outlook for the Week – 06 to 10.04.2015
( www.rupeedesk.in )
Stocks of frontline cement companies are seen trading with a
positive bias next week after correction during the last couple of weeks. After
correction, there is a positive bias. Cement stocks are expected to go higher
next week on account of improvement in demand for cement. After Holi, cement
prices have firmed up on recovery of demand in north India. The government's
announcement to invest in infrastructure projects has also stimulated demand
for cement.
We prefer Stocks of UltraTech Cement because of its capacity and
volume growth. Among all the cement companies, Ultratech Ltd has grown in terms
of profits, capacity and volume.
The Competition Commission of India last week Wednesday has
approved Holcim-Lafarge merger deal with some modifications.
In India, Holcim owns ACC Ltd and Ambuja Cements, the stocks of which
are seen up next week on the news. Cement stocks are likely to be impacted by
Jan-Mar earnings, as well some cement companies may detail their earnings next
week.
