GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 22 to 26.12.2014

Cement Stocks Outlook for the week – 22 to 26.12.2014

Stocks of most cement companies are seen extending losses next week due to fall in product
prices. After reducing prices in October, earlier this month, companies such as Ultratech Cement,
ACC Ltd and Ambuja Ltd had again cut rates by 5-10 rupees per 50 kg bag in key markets.

The demand-supply for cement is not good. The semi-urban and rural areas are the ones that are
driving demand. It will take some more time for the sales to pick up. It is difficult to put timeline
but it will take around six to nine months for sales to grow.

UltraTech Cement, the country's largest cement maker with over 62 mtpa capacity, cut prices by
10-20 rupees per bag in Delhi last week while ACC has cut prices by 10-15 rupees per bag.

Ambuja Cements has cut prices by 10-20 rupees per bag. Also, stocks of UltraTech would be in
focus on reports the company is in talks to buy Jaiprakash Associates Ltd to buy the latter's cement plants in south and central India.