Cement Stocks Outlook for the week – 18 to 22.05.2015
(Seen
tracking broader market next week)
Next
week, cement company stocks will move tracking the trend in the broader market
in the
absence
of any major sector-specific trigger. Demand for cement has been subdued, and
cement prices have declined further in northern India. Stocks of major cement
companies are not expected to trade up in the coming week. There is not much
happening in the cement industry. Demand for cement is very low in the country.
Companies have not been able to maintain prices. It will be a lacklustre week
for the cement stocks.
Yesterday,
JK Lakshmi Cement reported dismal Jan-Mar earnings, as operating profit declined
by around 36% year-on-year to 715 mln as against the expectation of 900 mln
rupees. Earnings Before Interest, Tax, Depreciation and Amortisation per tn
came in at 466 rupees compared with 658 rupees per tn reported last year.
Average realization declined by around 1% year-on-year to 3,774 rupees per tn.
