Cement Stocks Outlook for the week – 03 to 07.08.2015
Seen
up on turnaround in building activity
( www.rupeedesk.in )
Stocks
of major cement companies are likely to have a positive bias next week on the
back of a
likely
turnaround in infrastructure spending and pickup in construction activity. Weak
results of
most
cement companies have already been factored in and most cement stocks took a
beating this week. The next week is expected to be better as most stocks have
already underperformed and some recovery is now on the anvil.
Despite
the positive outlook in the long term, analysts remain split on the short-term
performance. Weakness in stocks like ACC, Ambuja and Ultratech is expected to continue,
given the tepid nature of demand in the construction sector, which many say
will revive only after the monsoons are over. Stocks in the sector are also
expected to be driven by the earnings of Ramco and Shree Cements, both of which
are expected to turn in numbers that are not very exciting.
