Cement Stocks Outlook for the week – 20 to 24.04.2015
( www.rupeedesk.in )
Stocks
of major cement companies are likely to trade down next week in the absence of
any near term positive triggers. Demand is very weak, adding that the sector's
growth depends on demand for cement from the infrastructure sector.
In
the northern region, cement prices have come down again after being increased
in March due to subdued demand. There were expectations that prices would hold
up in the north after being increased in March. Demand could not pick up as
anticipated after announcement of the Budget. Demand will pick up from May and
prices will go up again.
No
cement company is going to report earnings next week. UltraTech Cement Ltd will
report its earnings on Mar 25, when the markets will be closed. Jan-Mar
earnings would be impacted because of weak demand and low prices during the
quarter. From long term perspective, cement stocks are seen trading up because
of the government's focus on infrastructure. But it will surely take some time
for things to materialise.
