Cement Stocks Outlook for the week – 10 to 14.07.2017
Cement Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of cement companies are seen trading on a mixed note next week as the demand for the
commodity is expected to remain sluggish despite the price cuts by companies in some regions after
the roll out of goods and services tax on Jul 1. The Cement will be taxed at 28% under the new indirect tax regime, down from 29-31% earlier depending on the local taxes in various states. After the roll out of goods and services tax, cement companies are seen saving on logistics cost by having fewer bigger warehouses rather than having many smaller warehouses in different states. Goods and services tax on coal has been kept at 5%, as against 11% earlier. Cement companies are seen gaining from it depending on their coal usage. The demand is weak and is expected to improve only after monsoon. Price cuts will not make much of a difference to the demand as construction work will pick up only after monsoon. Eight cities--Delhi-National Capital Region, Mumbai, Pune, Hyderabad, Kolkata, Bengaluru, Chennai, and Hyderabad--saw fresh launches in Jan-Mar fall to a seven-year low, while sales declined to a five-year low. Housing sector is the main demand driver for cement, contributing more than 65% of demand in the country.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of cement companies are seen trading on a mixed note next week as the demand for the
commodity is expected to remain sluggish despite the price cuts by companies in some regions after
the roll out of goods and services tax on Jul 1. The Cement will be taxed at 28% under the new indirect tax regime, down from 29-31% earlier depending on the local taxes in various states. After the roll out of goods and services tax, cement companies are seen saving on logistics cost by having fewer bigger warehouses rather than having many smaller warehouses in different states. Goods and services tax on coal has been kept at 5%, as against 11% earlier. Cement companies are seen gaining from it depending on their coal usage. The demand is weak and is expected to improve only after monsoon. Price cuts will not make much of a difference to the demand as construction work will pick up only after monsoon. Eight cities--Delhi-National Capital Region, Mumbai, Pune, Hyderabad, Kolkata, Bengaluru, Chennai, and Hyderabad--saw fresh launches in Jan-Mar fall to a seven-year low, while sales declined to a five-year low. Housing sector is the main demand driver for cement, contributing more than 65% of demand in the country.
Source : Cogencis Information Services Ltd.
