Cement Stocks Outlook for the week – 06 to 10.2016
(In narrow range with positive bias
next week)
( www.rupeedesk.in )
The shares of cement manufacturing companies are seen trading in a
thin band with a positive bias next week mainly due to strong sales performance of
companies in the sector in Jan-Mar and better prospects of continued demand for the
building material. Cement industry's Jan-Mar performance was strong exceeding
estimates on operating front mainly on account of better-than-expected demand growth and
substantial reduction in operating costs.
A healthy demand pick-up was witnessed across the country barring
few pockets, which led the companies registering an average volume growth of around
14.5% year on year and around 12.8% quarter on quarter. We expect this sales momentum
to drive cement shares up next week.
