Cement Stocks Outlook for the week – 11 to 15.04.2016
(Seen
trading with negative bias on weak demand)
( www.rupeedesk.in )
Shares
of cement manufacturers are seen trading with a negative bias next week, primarily
because of persistent weak demand for the building material in large parts of
the
country.
Through
the past month, cement makers have increased prices in northern and western
India,
even as demand remains weak. Drought-like conditions in large parts of the country
are seen further hitting demand in rural regions. For demand to pick up, the
industry
has pinned its hopes on the roads sector.
Among
large cement companies, shares of UltraTech Cement are seen gaining the most,
given
the company's wide reach across the country and its large manufacturing capacity,
with which it would be best, placed to meet any sudden surge in demand. Among
mid-cap cement companies, shares of JK Lakshmi Cement are seen faring better
than those of its peers, as the company has more idle capacity and stronger
hold, particularly in north India.