Cement Stocks Outlook for the week – 21 to 24.08.2017
Cement Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
Continued weakness in demand and pressure on prices are likely to keep stocks of cement companies in check in the near term, though no significant sector-specific movement is expected. However, value-buying in the broader market could help the small- and mid-cap cement companies' stocks to outperform their large-cap peers. Cement dealers have indicated that the steady progress of monsoon and the impact of goods and services tax and realty regulation act has moderated cement off take in August on a month-on-month basis. Owing to the weak demand, cement prices have also weakened in July and August, led by a price correction in all markets. Due to these issues, a significant upside in the sector as a whole is unlikely. However, most of stocks remain positive on the mid-to-long term outlook for the sector and the stocks, and recommended 'buying-on-dips' approach for the sector. The prospects of cement industry are directly linked to economic growth, as if the economy revives, the
country’s cement industry will also performs better. The Union Budget's stimulus for roads, affordable housing and other infrastructure projects will boost cement demand, which is a positive for pan-India cement players and thus, medium- to long-term outlook looks optimistic for cement industry. We expect improvement in profitability of both grey cement as well as white cement segments going forward.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
Continued weakness in demand and pressure on prices are likely to keep stocks of cement companies in check in the near term, though no significant sector-specific movement is expected. However, value-buying in the broader market could help the small- and mid-cap cement companies' stocks to outperform their large-cap peers. Cement dealers have indicated that the steady progress of monsoon and the impact of goods and services tax and realty regulation act has moderated cement off take in August on a month-on-month basis. Owing to the weak demand, cement prices have also weakened in July and August, led by a price correction in all markets. Due to these issues, a significant upside in the sector as a whole is unlikely. However, most of stocks remain positive on the mid-to-long term outlook for the sector and the stocks, and recommended 'buying-on-dips' approach for the sector. The prospects of cement industry are directly linked to economic growth, as if the economy revives, the
country’s cement industry will also performs better. The Union Budget's stimulus for roads, affordable housing and other infrastructure projects will boost cement demand, which is a positive for pan-India cement players and thus, medium- to long-term outlook looks optimistic for cement industry. We expect improvement in profitability of both grey cement as well as white cement segments going forward.
Source : Cogencis Information Services Ltd.
