Cement Stocks
Outlook for the week – 27 to 31.10.2014
( www.rupeedesk.in )
Jul-Sep earnings of cement majors
ACC Ltd and Ambuja Cements Ltd are likely to provide trend
for stocks of companies from the
sector next week.
The bias is likely to be positive
as both Ambuja and ACC are expected to post good results.
UltraTech's numbers too have been
encouraging. The worse seems to be over for cement
companies.
Cement stocks have seen their
valuations re-rate at an unprecedented pace in the past six months
or so, driven by expectations of
demand growth. Large caps are trading at multiple-year high
valuations, with several mid-caps
closing in the gap too.
We continue to prefer UltraTech
in the large cap space. Among midcaps, we like JK Cement, JK
Lakshmi & Heidelberg Cement
due to their presence in strong regions and well timed expansions while India Cement can be a major
beneficiary of a strong demand revival in Andhra Pradesh.
