Cement Stocks Outlook for the week – 22 to 26.02.2016
( www.rupeedesk.in )
Stocks
of cement companies are seen trading in a narrow range next week
with
some positive trend in select stocks currently trading at attractive
values.
UltraTech
Cement's stock and feel the company's shares deserve to trade
at a
premium, given that it has large unutilised production capacity and
good
nationwide presence that could come in handy when cement
demand
in the country picks up.
Among
mid-cap cement stocks, favour Shree Cement because it plans to
expand
in east India, and JK Lakshmi Cement because it has strong
presence
in north India, the country's largest market geography.
Cement
companies reported better on-year sales volume growth in Oct-
Dec,
but it was at the cost of margins as they dropped prices in a bid to
increase
demand in a weak market. Planned price hikes at the start of
January
have been rolled back in the north, west and central region.
While
cement pricing remained soft in Oct-Dec, all eyes are now on Jan-
Mar, which is the busy construction season