Cement Stocks Outlook for the week – 17 to 21.07.2017
Cement Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of cement companies are seen trading mixed next week, with investors expected to look for cues from the earnings of ACC Ltd and UltraTech Cement Ltd for the June quarter. ile ACC will detail its earnings for Apr-Jun on Jul 17, UltraTech is scheduled to announce its results on Jul 18. rket participants will also watch out comments by the ACC management on a possible merger with Ambuja Cements Ltd. A the goods and services tax was rolled out on Jul 1, the earnings of these companies for Apr-Jun wouldn't be affected, though there might be some affect on volumes in the last two weeks of June. Cement dealers don't keep high inventories because of a limited shelf life, but minor supply disruptions in the days before the rollout of the new indirect tax regime couldn't be ruled out. der the new tax regime, cement has been kept under the 28% slab, which is seen as a positive for the industry, as the overall tax on the commodity earlier was 29-31%. Monsoon is a weak season and that has already been factored in. But the demand still looks weak and unless housing activity picks up, there won't be much change. The housing sector contributes more than 65% to the cement demand across the country. In Jan Jun, residential real estate projects in eight major cities of the country had seen a sharp slowdown because of demonetisation and implementation of the Real Estate Regulation Act, real estate consultancy firm Knight Frank ad said in a report last week. States like Andhra Pradesh and Telangana, which were the bright spots or affordable housing are also seeing slowdown. Urban construction on a hole is seeing a slowdown leading to the low demand. However, the sector in the long term, as they expect affordable housing and infrastructure spending to aid demand. Next week, shares of ACC are seen gaining, while those of UltraTech are een consolidating. Ambuja Cements is expected to trade in a range.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of cement companies are seen trading mixed next week, with investors expected to look for cues from the earnings of ACC Ltd and UltraTech Cement Ltd for the June quarter. ile ACC will detail its earnings for Apr-Jun on Jul 17, UltraTech is scheduled to announce its results on Jul 18. rket participants will also watch out comments by the ACC management on a possible merger with Ambuja Cements Ltd. A the goods and services tax was rolled out on Jul 1, the earnings of these companies for Apr-Jun wouldn't be affected, though there might be some affect on volumes in the last two weeks of June. Cement dealers don't keep high inventories because of a limited shelf life, but minor supply disruptions in the days before the rollout of the new indirect tax regime couldn't be ruled out. der the new tax regime, cement has been kept under the 28% slab, which is seen as a positive for the industry, as the overall tax on the commodity earlier was 29-31%. Monsoon is a weak season and that has already been factored in. But the demand still looks weak and unless housing activity picks up, there won't be much change. The housing sector contributes more than 65% to the cement demand across the country. In Jan Jun, residential real estate projects in eight major cities of the country had seen a sharp slowdown because of demonetisation and implementation of the Real Estate Regulation Act, real estate consultancy firm Knight Frank ad said in a report last week. States like Andhra Pradesh and Telangana, which were the bright spots or affordable housing are also seeing slowdown. Urban construction on a hole is seeing a slowdown leading to the low demand. However, the sector in the long term, as they expect affordable housing and infrastructure spending to aid demand. Next week, shares of ACC are seen gaining, while those of UltraTech are een consolidating. Ambuja Cements is expected to trade in a range.
Source : Cogencis Information Services Ltd.
