Cement Stocks Outlook for the Week – 09 to 13.02.2015
( www.rupeedesk.in )
We
expect India Cements Ltd's stocks to be in focus next week as the company is
set to detail its Oct-Dec earnings and mull reorganization of its de-merged
Indian Premiere League Twenty 20 franchise Chennai Super Kings. India Cements
has completed required documentation for demerging Chennai Super Kings to a
wholly owned subsidiary. The company is estimated to post a net loss of 42 mln
rupees in Oct-Dec against a net profit of 4 mln rupees a year ago, as per an average
of estimates by eight brokerages. Net sales is seen at 10.93 mln rupees, up 5%
on year
.
The
company is scheduled to detail its earnings on Wednesday. Going forward the
pricing
environment
for the cement industry is seen improving as demand recovers and capacity
utilisation
bottoms out by end-March. With wide disparity in utilisation levels along with demand
drivers being more favourable for some regions, it is imperative to be
selective; it would avoid exposure to the southern market due to excess supply
issues.
