Cement Stocks Outlook For The Week - 03 to 06.10.2017
Cement Stocks Outlook For The Week - 03 to 06.10.2017
( www.rupeedesk.in )
Stocks of cement companies are expected to fall for a third week on weak demand for the commodity. Few stocks in the pack looked good last week, but they underperformed and will continue to under perform this week. Demand for cement has been subdued since June because of monsoon and the implementation of goods and services tax and Real Estate Regulation Act. All-India cement prices fell by 4%-8% between June and August, rating agency ICRA said on Thursday. It also reduced its estimate of growth for cement demand in 2017-18 (Apr-Mar) to 3.5%-4% from 5% because of muted demand growth in the first half of the year. Cement demand, however, is expected to rise from October onwards. Demand for affordable housing and rural housing, along with the increased focus on infrastructure by the government will drive up demand which may lead to a hike in price of the commodity. Increase in price is important for cement companies as high power, fuel, and freight costs continue to put pressure on their profitability. Slowdown in demand is expected during monsoon. GST added a bit more to it (demand slowdown), but now it (disruption due to GST) is over. Now that the monsoon is also over, expect demand to pickup.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of cement companies are expected to fall for a third week on weak demand for the commodity. Few stocks in the pack looked good last week, but they underperformed and will continue to under perform this week. Demand for cement has been subdued since June because of monsoon and the implementation of goods and services tax and Real Estate Regulation Act. All-India cement prices fell by 4%-8% between June and August, rating agency ICRA said on Thursday. It also reduced its estimate of growth for cement demand in 2017-18 (Apr-Mar) to 3.5%-4% from 5% because of muted demand growth in the first half of the year. Cement demand, however, is expected to rise from October onwards. Demand for affordable housing and rural housing, along with the increased focus on infrastructure by the government will drive up demand which may lead to a hike in price of the commodity. Increase in price is important for cement companies as high power, fuel, and freight costs continue to put pressure on their profitability. Slowdown in demand is expected during monsoon. GST added a bit more to it (demand slowdown), but now it (disruption due to GST) is over. Now that the monsoon is also over, expect demand to pickup.
UltraTech Cement - Up
Ambujacem - Down
Shree Cement - Up
IndiaCem - Up
ACC - Down
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Source : Cogencis Information Services Ltd.
