GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 25 to 28.08.2014

Cement Stocks Outlook for the week – 25 to 28.08.2014

Stocks of major cement companies are expected to trade with a positive momentum next
week on optimism over a demand uptick. Shree Cement Ltd will be in focus as the
company will detail its Apr-Jun earnings. Kolkata-based Shree Cement may see reduced
profitability due to price constraints and a rise in key input costs despite increased
demand for cement in Apr-Jun.

We remain positive on the cement sector where Grasim Industries, ACC and
UltraTech Cement are our top picks in the large-cap space while JK Lakshmi
Cement, India Cements and HeidelbergCement are our top picks in the mid-cap
Segment.

We have downgraded JK Cement from Buy to Sell as the stock price has run up 62% in
the past three months and 171% in the past six months, which factors in potential
earnings benefits. We have also downgraded Shree Cements and UltraTech Cement from

Buy to Accumulate following a run-up in their stock prices.