Cement Stocks Outlook for the week – 05 to 09.01.2015
( www.rupeedesk.in )
( www.rupeedesk.in )
Stocks of most cement companies are seen trading in a narrow range,
with a positive bias, next week as investors are seen building position at the start of the peak
construction season in anticipation of improvement in performance of these companies and an
increased likelihood of price hike.
While, Jan-Mar is the strongest quarter for the sector, Oct-Dec
earnings that will be detailed in the coming few weeks are also expected to bring some cheer. Cement
prices see maximum monthly movement over Jan-Mar due to a pick-up in construction
activity. The cement sector has outperformed the broader markets over Jan-Mar, in seven out of the
past 10 years, due to retail price increases that are prominent in the peak construction
season.
Most investors are bullish on UltraTech Cement following the company's
acquisition of cement units of Jaiprakash Associates last week. Post acquisition, UltraTech’s
capacity is likely to increase to nearly 65 mln from 60 mln tn at present. The company also
has plans to further increase capacity to 71 mln tn by end of 2015-16 (Apr-Mar).
